Metro Manila (CNN Philippines, January 27) — The Supreme Court has upheld the constitutionality of the Tax Reform for Acceleration and Inclusion (TRAIN) law, the court’s public information office said in a statement on Friday.
Voting 13-1 during its en banc session on Tuesday, the high court dismissed two petitions that challenged the constitutionality of the TRAIN law or Republic Act 10963.
The consolidated petitions of Alliance of Concerned Teachers and Laban Konsyumer argued that the law was unconstitutionally passed by the House of Representatives despite a purported lack of quorum.
“TRAIN rammed through major procedural requirements set by the Rules of the Lower House, and by no less than the fundamental law of the land — the 1987 Constitution,” petitioners said.
READ: Opposition solons ask SC to strike down new tax reform law
But according to the high court, the supposed absence of a quorum was contradicted by the official Journal of the House of Representatives — both on the day the TRAIN’s bicameral conference report was ratified and the immediately subsequent session on January 15, 2018.
The petitioners also argued that excise taxes imposed on diesel, coal, liquefied petroleum gas, and kerosene, were prohibited regressive taxes.
However, the court said TRAIN law does not prohibit the imposition of regressive taxes, but “merely directs Congress to evolve a progressive system of taxation.”
Lastly, petitioners claimed that excise taxes were discriminatory and against the poor, which violated the Filipino people’s right to due process and equal protection of laws.
But the court asserted that the petitioners’ contention was not sufficiently proven and remained largely hypothetical.
Among 13 Justices that voted against declaring TRAIN law unconstitutional, only Justice Alfredo Benjamin Caguioa registered dissent, while Justice Ricardo Rosario was on wellness leave.
Former President Rodrigo Duterte signed the ratified TRAIN law in 2018.
The new tax reform law will lower personal income taxes, but it will increase taxes on fuel, sweetened beverages, tobacco, and cars.
READ: Duterte signs tax reform bill, 2018 budget into law
