TOLENTINO vs. SEC.

OF FINANCE
GR No. 115455, October 30, 1995
FACTS:
The value added tax is levied on the sale, barter, or exchange of goods and
properties as well as on the sale or exchange of services, RA 7716 seeks to widen
the tax base of the existing VAT syste and enhance its adinistration by
aending the !ational "nternal Revenue #ode$ There are various suits challenging
the constitutionality of R$A !o$ 7716 on various grounds$
%ne contention is that R$A 7716, did not originate exclusively in the &ouse of
Representatives as re'uired by Article V", (ection )* of the #onstitution, because it
is in fact the result of the consolidation of two distinct bills, &$ !o$ 111+7 and ($ !o$
16,-$ There is contention that ($ !o$ 16,- did not pass , readings as re'uired by
the constitution$
ISSUE:
.hether or not RA !o$ 7716 violates Art$ V", (ection )*, and )6/)0 of the
#onstitution$
EL!:
!o$ 1etitioners contention that RA !o$ 7716 did not 2originate exclusively in
the &ouse of Representatives as re'uired by Art$ V", (ection )* of the #onstitution,
because it is in fact a consolidation of ) distinct bills, &$ !o$ 111+7 and ($ !o$ 16,-$
"n this connection, petitioners point out that although Art$ V", (ection )*, was
adopted fro the Aerican 3ederal #onsti$, it is notable in two respects4 the verb
2shall originate5 is 'uali6ed in the 1hil$ #onsti$, by word 2exclusively5 and the
phrase 2as on other bills in the Aerican version is oitted$ This eans, according
to the, that to be considered as having originated in the &ouse of Representatives,
RA 7716 ust retain the essence of &$ !o$ 111+7$ This arguent will not bear
analysis$ To begin with, it is not the law 777 but the revenue bill 777 w8c is re'uired by
the #onsti$ to 2originate exclusively5 in the &ouse of Representatives$ "t is iportant
to ephasi9e this, because a bill originating in the &ouse of Representatives ay
undergo such extensive changes in the (enate that the result ay be a rewriting of
the whole$ At this point, what is iportant to note is that, as a result of the (enate
action, a distinct bill ay be produced$ To insist that a revenue statute : and not
only the bill which initiated the legislature process culinating in the enactent of
the law : ust substantially be the sae as the &ouse ;ill would be to deny the
(enate<s power not only to 2concur with aendents5 but also to 2propose
aendents$5 "t would be to violate the coe'uality of legislative power of the two
houses of congress and in fact ake the &ouse superior to the (enate$
1 Tolentino vs$ (ecretary of 3inance
Taxation