A high school teacher urged the Supreme Court to declare unconstitutional Republic Act 12079 or an Act Creating a Value Added Tax Refund System for Non-Resident Tourists, saying it promotes discriminatory and unfair treatment for Filipino tourists in the country.
In a petition for certiorari and prohibition dated June 30, 2025, John Barry Tayam argued that the law violates the equal protection clause of the 1987 Constitution as it gave preferential treatment to foreign tourists to the detriment of domestic tourists.
Tayam added that it also violates the progressive, uniform, and equitable principle of taxation stipulated under the Constitution.
“The petitioner contends that certain provisions of the ACT are possibly inconsistent with constitutional principles or that raise issues of legal interpretation that require clarification by the Judicial Branch,” the petitioner said.
“Specifically, the petition aims to address concerns regarding the application, scope and fairness of the VAT-refund scheme for non-resident tourists, and whether these provisions align with existing laws, including constitutional mandates on equality, taxation, and international trade,” he added.
Tayam said his petition illustrates both direct injuries inflicted on local taxpayers and a public right deserving of judicial scrutiny.
“Moreover, this highlights the conflicting procedures and burdens imposed upon Filipino businesses compared to non-resident beneficiaries, underscoring the petition’s timeliness and constitutional resonance,” he said.
With this, Tayam urged the SC to declare RA 12079 unconstitutional on the ground that it “violates constitutional requirements” for equity, uniformity, and progressive taxation.
He also asked the High Court to declare the act “unenforceable” against the Department of Finance, its secretary, and all executive agencies tasked with implementing it.
Tayam named Finance Secretary Ralph Recto, Senate President Francis Escudero and Speaker Martin Romualdez as the respondents in his petition.
Tayam, 29, ran in the May 12 midterm elections for Las Pinas City’s lone congressional district but lost.
In March this year, he also filed a petition with the SC seeking clarification on the issues surrounding the impeachment of Vice President Sara Duterte.
At the heart of his petition for declaratory relief is a plea to the magistrates to settle the debate on the term “forthwith” in the 1987 Constitution regarding impeachment on whether the term means a swift or immediate action, or does it allow for delay.
But Tayam said he is not pushing for the Vice President’s impeachment for partisan or political reasons, but rather, he wants clarification of the term since there are so many interpretations of it now, including that of Escudero and legal experts.
The Senate last month voted to remand the articles of impeachment against Duterte to the House of Representatives.