SC: TRAIN law constitutional

MANILA, Philippines — The Supreme Court (SC) has upheld the constitutionality of the Tax Reform for Acceleration and Inclusion or TRAIN Law.

In a decision penned by Associate Justice Japar Dimaampao, the SC dismissed the consolidated petitions against the TRAIN Law, which argued that it was unconstitutionally passed by the House of Representatives given a lack of quorum and that its provisions imposing excise on petroleum products are “prohibited regressive taxes.”

Thirteen justices voted to dismiss the petitions against it. Associate Justice Alfredo Benjamin Caguioa registered a dissent, while Justice Ricardo Rosario, who is on wellness leave, was unable to take part in the decision.?The SC held that the supposed absence of a quorum was refuted by the official journal of the House of Representatives, both on the day that the TRAIN’s Bicameral Conference Report was ratified and on the immediately subsequent session date of Jan. 15, 2018.

“As between the livestream video and photographs presented by the petitioners and the Congressional Journal, the latter must prevail,” the SC said in a press briefer.

The SC also reiterated that the Constitution, in its present form, does not prohibit the imposition of regressive taxes, but merely directs Congress to evolve a progressive system of taxation.

Finally, the high court ruled that the petitioners’ contention that the provisions of the TRAIN Law are “anti-poor” was “not sufficiently proven and remained largely hypothetical.”

‘Stronger’

In reaction, Albay Rep. Joey Salceda said the SC ruling has strengthened the mandate of the House committee on ways and means, which he heads, to further pursue tax reforms.

“The Supreme Court ruling upholding the constitutionality of the TRAIN Law demonstrates the Court’s commitment to upholding its usual respect for the primacy of Congress in enacting tax legislation,” said Salceda, who heads the House tax panel.

He noted that if the law were voided, “major increases in the take-home pay of average taxpayers would have been nullified – including the five percent or so increase in take-home (pay) that workers received from the TRAIN law this 2023.”

“Of course, we are committed to a progressive tax system. That said, this is a matter for congressional debate, not a matter for courts to decide. And the ruling affirms this,” he said.

The economist-lawmaker said the SC’s “near-unanimous decision to dismiss petitions against the TRAIN law signify that the Court will respect longstanding jurisprudence that ‘the taxing power of the State is exclusively a legislative function.’” – Sheila Crisostomo