EXPLAINER: Why aren't Philippine laws implemented immediately after the president signs the bill?
On the evening of March 25, President Ferdinand Marcos Jr. signed into law a measure granting the authority to either suspend or reduce excise taxes on petroleum products.
Republic Act No. 12316 is meant to be a tool for the government to help ease the impact of skyrocketing fuel prices triggered by the conflict in the Middle East. But after signing the bill, Marcos said he would wait for the "best time" to implement it.
Under the new Act, tax relief is tied to specific conditions: the average Dubai crude oil price must reach or exceed US$80 per barrel for one month, or the President must declare a national emergency due to price hikes.
Even then, to set the Act in motion, an executive order is needed based on recommendations from the Department of Finance and the Department of Energy is needed.
But what exactly does the Constitution say? When the president of the Philippines signs a bill, unless explicitly stated otherwise, it must undergo a process before the president can issue an executive order.
“The earliest that the president can issue the [executive order] is around April 12 or 13, if I’m not mistaken with my numbers,” said Department of Finance Undersecretary Karlo Adriano at the hearing of the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy committee on March 26.
A grace period to allow due process
Citing Article 2 of the Civil Code, Atty. Carlo John Pascual quoted to PhilSTAR L!fe, "Laws shall take effect after 15 days following the completion of their publication in the Official Gazette or in a newspaper of general circulation, unless it is otherwise provided."
There are no exemptions to the publication rule, Atty Hyacinth Morales told L!fe.
"Strictly speaking, publication is never optional. The Supreme Court ruled in the [1986] landmark case Tañada vs. Tuvera that all laws must be published. However, there is flexibility regarding when they take effect," Morales said.
"In the case of this particular law, it will comply with the 15-day [wait] kasi hindi naman nakalagay na 'immediately effective from publication'," she added.
Why is there a need for publication in the first place? "For constructive notice," said Morales. "The law assumes that once it is published, everyone knows about it. Without publication, the government can't punish you for breaking a law you couldn't have known existed."
The 15-day grace period gives the public, businesses, and government agencies enough time to adjust their systems to accommodate the new rule before it becomes active. It allows oil companies to recalibrate their systems and supply chains to incorporate the removal of the tax from pump prices.
Additionally, according to Morales, numerous tax laws require Implementing Rules and Regulations.
"The law says, 'Suspend the tax.' The IRR says, 'Which specific fuel grades? How do we credit the gas stations? What forms do they fill out?' Often, the law is technically 'in effect,' but it can't be enforced until the Department of Finance or the Bureau of Internal Revenue finishes writing the manual on how to do it," Morales told L!fe.
