Supreme Court Upholds E-VAT with Finality by Lorna V. Wy, MA (November, 2005)

Its Final: RA 9337 otherwise known as the VAT Reform Act and also the Expanded Value Added Tax of 2005 is CONSTITUTIONAL. SC En Banc ratio decidendi said that "So long as there is a public end for the RA 9337 was passed, the means through which such end shall be accomplished is for the legislature to choose so long as it is within the Constitutional bounds" The State has three inherent powers impose upon the citizens without mandate of the Constitution.

These are Power of Eminent Domain, Police Power and Power of Taxation. Power of taxation is sovereign power, exercise through the legislature, to impose burdens upon the subjects (natural and juridical persons) and objects within its jurisdiction, for the purpose of raising revenues to carry out the legitimate objects of the government.

However, there are indispensable principles of Power of Taxation, which is incumbent upon the Government: To serve the people and to protect the people. The opposition led by Congressman Escudero filed before the Supreme Court a Motion for Reconsideration on the contention that Bicameral Conference Committee (BCC) deleted the "no pass on" provision, thus E-VAT is ultimately borne by the consumer. Dissenting opinion of Justice Dante O. Tinga, opined that a tax measure may be validly challenged and struck down prior to the implementation if its poses a clear and present danger to the life, liberty or property of the taxpayer without due process of law. He said that the resolution makes doctrinal the "temerarious proposition" that a person has no vested right to business earnings and profits.

Prima Facie evidence established the display of the constitutional rights to freedom of expression and redress grievances of the leftist group, peoples organization led by the opposition on the contention that E-VAT law will create a wide gaps between the elite and the Filipino people living below poverty line. It is not an isolated issue of frustration on the part of the people towards the government whether or not President Arroyo is the Head of State; it is coupled with minimum wage law, oil deregulation law with domino effects on electricity and water prices. At the end of the day, the effort, acts and display of force of the people subscribing to the principle of democracy and sovereignty of the people will not bear any fruit. We are governed by the rule of law, Laws are repealed only by subsequent ones, and their violation or non-observance shall not be excuse by wrong usage, of custom or practice to the contrary.