Manila: The Court of Tax Appeals (CTA) has turned down a petition filed by Nestle Philippines Inc. questioning the imposition of sweetened beverage taxes (SBT) over its line of malt-flavored drink.
According to Philippines News Agency, in a 13-page decision dated Aug. 7, the CTA's Second Division dismissed for lack of jurisdiction the suit filed by Nestle, and also turned down the firm's motion for the suspension of collection of taxes as it 'is deemed moot and academic.'
Nestle had questioned the Bureau of Internal Revenue's revenue memorandum circular (RMC) and letters directing it to pay SBT on Milo products after the Food and Drug Administration (FDA) classified the Milo product line as 'flavored milk drinks.'
The BIR, however, argued that the court has no jurisdiction over the instant case as Nestle failed to exhaust administrative remedies before elevating the case to the CTA.
The BIR also has the sole authority to determine the taxability of products, and not the FDA.
'The instant petition is dismissed for failure to exhaust administrative remedies,' the CTA said.
'. prior recourse must first be made before the Secretary of Finance. And it is only after the Secretary of Finance has been given the chance to rule .. that an appeal before this Court can be made,' it added.