CA thumbs down 10-¢ levy on oil transshipments

MANILA, Philippines - The Court of Appeals (CA) has rejected the request of the Department of Transportation (DOTr) to proceed with its planned imposition of the 10-centavo per liter levy on oil transshipments of petroleum marine transport companies.

In a six-page resolution released yesterday, the special 12th division of the CA denied DOTr’s plea for issuance of a temporary restraining order (TRO) to stop the implementation of an earlier injunction order issued by a Quezon City court preventing the government from collecting the tax.

The CA cited the government’s failure to satisfy necessary requisites for the issuance of the temporary relief sought.

“Here, there is no showing of a clear right which was violated or what ‘irreparable injury’ petitioners would stand to suffer aside from their general allegation that prevention from discharging their duty and responsibility under R.A. 9483 would cause ‘public inconvenience’ or result in ‘public mischief’ at the expense of the environment,” said the ruling penned by Associate Maria Elisa Sempio Diy.

“Bare allegations do not amount to substantial evidence,” it stressed.

In the assailed order issued in July last year, QC RTC Branch 216 Judge Alfonso Ruiz II granted the motion filed by respondents – Philippine Sea Transport Association, Herma Shipping and Transport Corp., Islas Tankers Sea Transport Corp., MIS Maritime Corp., Petrolift Inc., Golden Albatross Shipping Corp., Via Marine Corp. and Cargo Marine Corp.  – for the issuance of a writ of preliminary injunction against the said levy.

The injunction order specifically directed the DOTr, Maritime Industry Authority and Philippine Coast Guard to cease and desist from imposing a 10-centavo levy per liter for every delivery and transshipment of oil, which will go to the Oil Pollution Management Fund.