The Gods Have Deliberated

The Supreme Court has just finished its oral arguments on the expanded value added tax law at around 11 p.m. It was a full ten-hour no-break-no-lunch-no-dinner deliberation.

The first one who argued before the justices was Atty. Rene Gorospe, counsel for ABAKADA GURO Partylist, one of the petitioners. His main objection was that the standby authority granted to the President was an undue delegation of legislative power to the executive.

Gorospe argued that the taxing power was granted to the members of the Congress as their people's representatives. Because, "it is the people who decides how much and in what manner will they be taxed by the state."

But, Gorospe added, Congress made it appear that it was the President who would be making the decision to raise the tax come year 2006. "Congress practically hid behind the skirts of the President," he said.

There are two conditions when the President will have to raise the vat from 10% to 12%. These are:

1. value added tax collections as a percentage of gross domestic product (GDP) of the previous year exceeds 2 4/5%, or;
2. national government deficit as a percentage of GDP of the previous year exceeds 1/2%.

But Associate Justice Artemio Panganiban asked Gorospe, does the President have control over these factors?

"No," Gorospe said.

"Meaning, the determination of these factors are factual? She cannot exercise discretion?" queried Panganiban.

"Yes," answered Gorospe.

"Then there's no undue delegation of power. If these factors are present, then she has no choice but to just raise it," Panganiban said.

"Yes," said Gorospe.

"Did you say, 'yes'," asked an alarmed Chief Justice Hilario Davide, Jr.

"What now is your position?" Panganiban asked Gorospe.

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Judging from the line of questioning of the justices and the manner which the petitioner argued their case, some say, there's a strong chance that the TRO will be lifted and the law declared constitutional. But that's really up to the justices. The parties were asked to submit their respective memoranda within 10 days from yesterday. After that, the case is deemed submitted for resolution.