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Diaz and Timbol vs Secretary of Finance

RENATO V. DIAZ AND AURORA MA. F. TIMBOL, PETITIONERS, VS. THE SECRETARY OF FINANCE AND THE COMMISSIONER OF INTERNAL REVENUE, RESPONDENTS.

G.R. No. 193007 | 2011-07-19

EN BANC
D E C I S I O N
 
ABAD, J.:
 
May toll fees collected by tollway operators be subjected to value- added tax?
 
The Facts and the Case
 
Petitioners Renato V. Diaz and Aurora Ma. F. Timbol (petitioners) filed this petition for declaratory relief [1] assailing the validity of the impending imposition of value-added tax (VAT) by the Bureau of Internal Revenue (BIR) on the collections of tollway operators.
 
Petitioners claim that, since the VAT would result in increased toll fees, they have an interest as regular users of tollways in stopping the BIR action. Additionally, Diaz claims that he sponsored the approval of...