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Ruling: The Court held that PD 1869 is constitutional and does not violate
the principle of local autonomy. Section 5, Article 10 of the 1987
Constitution provides:
Each local government unit shall have the power to create its
own source of revenue and to levy taxes, fees, and other
charges subject to such guidelines and limitation as the
congress may provide, consistent with the basic policy on
local autonomy. Such taxes, fees and charges shall accrue
exclusively to the local government.
A close reading of the above provision does not violate local
autonomy (particularly on taxing powers) as it was clearly stated
that the taxing power of LGUs are subject to such guidelines and
limitation as Congress may provide.