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12 April 2012

Court stops VAT on imported fuel in Clark, Subic freeports

CLARK FREEPORT – A Regional Trial Court (RTC) in Angeles City has stopped the Bureau of Internal Revenue (BIR) from imposing value-added tax (VAT) on all petroleum and petroleum products that are imported and/or brought directly from abroad via freeport and economic zones, including this premiere freeport.

The court has issued a writ of preliminary injunction, ordering the BIR, its agents, representatives, or assigns, and all persons acting in its place and stead from enforcing directly or indirectly Revenue Regulation No. 2-2012.

RTC Branch 58 Presiding Judge Philbert Iturralde said in his seven-page resolution that the regulation contradicts Republic Act 7227, the law that created Subic and Clark Freeport Zones. Republic Act 9400 later amended RA 7227.

“This Court, in the exercise of its sound judicial discretion, finds the prayer for the issuance of the writ of preliminary injunction to be impressed with merits and hereby grants the same,” the decision said.

Iturralde ordered petitioner, Pampanga 1st District Representative Carmelo Lazatin, to post a P15-million injunction bond to answer for any damage that may be suffered by the BIR in the event that the court should later determine that the lawmaker is not entitled to the relief prayed for. (Mark Anthony N. Manuel, Manila Bulletin)

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