REVENUE MEMORANDUM CIRCULAR NO. 38-2017 issued on May 5, 2017 circularizes the full text of the decision of Supreme Court dated November 29, 2016 in the case of Finance Secretary Cesar B. Purisima and Commissioner of Internal Revenue Kim S. Jacinto-Henares vs. Representative Carmelo F. Lazatin and Ecozone Plastic Enterprises Corporation with G.R. No. 210588.

     The Supreme Court rules and declares that Revenue Regulations (RR) No. 2-2012 is null and void. Based on the merits of the said case, the Supreme Court rules that RR No. 2-2012 is invalid and unconstitutional because it illegally imposes taxes upon Freeport and Economic Zone enterprises, which, by law, enjoy tax-exempt status, and it effectively amends the law (i.e., Republic Act No. 7227, as amended by RA 9400), thereby encroaching upon the legislative authority reserved exclusively for Congress by the Constitution.