Enrile opposes VAT on toll

MANILA, Philippines - Senate President Juan Ponce Enrile has opposed the imposition of 12 percent value added tax (VAT) on toll starting this month, saying this is an additional burden for motorists who also pay the road users’ tax.

The Bureau of Internal Revenue (BIR) has said the VAT on toll would first be imposed on private vehicles. 

Enrile, who is seeking reelection under the Puwersa ng Masang Pilipino party, said the toll rates are already taxes by nature.

“As early as August of last year, I have already stated that I am not in favor of any additional taxes, as our people are already over-burdened with their financial obligations.  In the case of owners of private vehicles, they already pay their dues to the government under the road users’ tax to recover the fees expended by the government for the construction and maintenance of these roads,” Enrile said.

He said the imposition of VAT on toll fees will also increase government cost because even government-owned vehicles will have to pay the 12 percent tax eventually. 

The Toll Regulatory Board earlier said the imposition of VAT on toll would violate the build-operate-transfer contract between the government and toll operators because VAT on toll is not part of the toll operation agreements between the two parties.

Enrile said VAT on toll will also raise transportation and food cost.

“It seems the BIR did not study this plan well.  Ultimately, it will be our consumers and the poor people of this country who will suffer and be made to shoulder the cost of this 12 percent VAT on toll fees,” Enrile said.