Pilipinas Shell Petroleum Corporation has filed a motion for a temporary restraining order (TRO) against the government from collecting excise tax on fuel blending additives.
In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Shell confirmed that it received a copy of the Supreme Court’s (SC) decision on August 4 affirming the power of the Court of Tax Appeals (CTA) to issue a TRO to stop the government from collecting excise taxes on subsequent alkylate imports.
“Following the Supreme Court’s directive to remand the case to the CTA, SHLPH has filed a motion to pursue a previous TRO application with the CTA to whom this matter has been remanded,” the disclosure read. SHLPH is Shell’s trading symbol in the PSE.
The firm’s filing of the motion followed the SC’s decision affirming the suspension by the CTA of the collection of excise taxes for the importation of alkylate from January 2010 to June 2012 worth Php1.99 billion.
Shell imports alkylate, a petroleum additive used as a blending component for its unleaded gasoline.
“To date, the merits of the case, including the very issue of whether SHLPH’s alkylate importations are subject to excise tax or not, are yet to be decided by the CTA,” the country’s second-largest oil firm added.
Shell previously said it plans to continue to preserve and protect its rights and remedies under the law.
Presidential Spokesman Sec. Harry Roque had mentioned that the government was expecting to collect Php41 billion from the multinational oil giant, including a principal amount of Php3 to 4 billion due to penalties and interests. Roque said Shell’s tax payment could be used by the government in its COVID-19 response.