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Bacolod City, Philippines Tuesday, October 8, 2013
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Court issues TRO
on raw sugar VAT


The Cadiz Regional Trial Court has issued a temporary restraining order on Revenue Regulations No. 13-2013 of the Bureau of Internal Revenue  that imposes Value-Added Tax on what sugar stakeholders consider raw sugar.

On an order dated October 3,          Cadiz RTC Judge Renato Muñez    directed the BIR  to maintain the status quo and to cease and desist from implementing RR No.13-2013  until further order from the court  pending hearing on the propriety of the issuance of a preliminary injunction.

Muñez  was acting on a petition filed by  the Rural Planters Association Inc., Northern Negros Planters Association Inc., Confederation of Sugar Producers Associations,  United Sugar Producers Federation of the Philippines Inc., and the National Federation of Sugar Producers, versus BIR Commissioner Kim Henares, Finance Secretary Cesar Purisima and  BIR Region XII Director Perfecto Aranas.

Representatives of the BIR and the planters groups  attended a hearing yesterday  at the Cadiz RTC, and the judge is expected to come out with a ruling on whether or not to grant a writ of preliminary injunction. 

“There is a pending case to declare Revenue Regulations  Order No 13-2013 unconstitutional. We have a temporary restraining  order pending the issuance of the preliminary injunction. Our position is solid that the sugar planters were deprived of due process,” a statement from the five planters groups sent by UNIFED president Manuel Lamata last night said.

“We are confident we  have a good argument to support our contention,” Rafael Coscolluela, CONFED president,  said.

He said the Philippine Sugar Millers Association is also set to file a case opposing the new revenue regulation in Quezon City and another group is filing  raps in Bukidnon.

Enrique Rojas, NFSP president, said they leave it to the court to decide on their opposition to the new revenue regulations.*CPG



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