MANILA – The government’s bid to lift the temporary restraining order issued by the Supreme Court against the expanded value added tax law was denied yesterday (July 5), but the high tribunal moved to expedite the resolution of the case.

In view of revenue loses estimated at P130 million a day, the SC reset the oral arguments on the case from July 26 to July 14.

The SC did not comment on the motion for reconsideration filed by the finance department the other day. The EVAT law was supposed to take effect July 1 but the minority lawmakers from the Senate and the House of Representatives in partnership with the party list group Abakada along with various associations of petroleum  dealers petitioned the SC last Friday to hold the implementation of the law due to technical shortcomings.

The SC’s issuing of the TRO was not welcomed by investors resulting in a depreciation of the peso and a slide in the stock market. The government had been counting on the proceeds from the EVAT law to partially solve the budget deficit, estimated at P160 billion this year.

COMMENT: The stock market and the rest of the business community will be in limbo between now and July 14. Opposition senator Juan Ponce Enrile said the Arroyo administration must prepare for the worst case, which is the SC declaring with finality that the EVAT law is null and void. Despite President Gloria Macapagal Arroyo’s serious political problems, she still has to preside over the executive branch, keeping the government bureaucracy rolling.