BENJAMIN P. GOMEZ, PETITIONER-APPELLEE, VS.

ENRICO PALOMAR, IN HIS CAPACITY AS

POSTMASTER GENERAL; HON. BRIGIDO R. VALENCIA, IN HIS CAPACITY AS SECRETARY OF
PUBLIC WORKS AND COMMUNICATIONS AND DOMINGO GOPEZ, IN HIS CAPACITY AS ACTING
POSTMASTER OF SAN FERNANDO, PAMPANGA, RESPONDENTS-APPELLANTS.
G.R. No. L-23645, October 29, 1968

FACTS:
Petitioners mail was returned to him for it did not bear the special anti-TB stamp required under RA
1635 as amended by RA 2631. Petitioner brought a suit to test the constitutionality of the statute as well as
the implementing orders issued contending that it violates the equal protection clause of the Constitution. He
further argues that the tax in question is invalid because it is not levied for a public purpose as no special
benefits accrue to mail users as taxpayers and because it violates the rule of uniformity in taxation.

ISSUE:
Is the statute unconstitutional?

RULING:
It is settled that the legislature has the inherent power to select the subjects of taxation and to grant
exemptions. This power has aptly been described as "of wide range and flexibility. Indeed, it is said that in
the field of taxation, more than in other areas, the legislature possesses the greatest freedom in classification.
The reason for this is that traditionally, classification has been a device for fitting tax programs to local needs
and usages in order to achieve an equitable distribution of the tax burden.
The classification of mail users is based on the ability to pay, the enjoyment of a privilege and on
administrative convenience. Tax exemptions have never been thought of as raising revenues under the equal
protection clause.
WALTER LUTZ, AS JUDICIAL ADMINISTRATOR OF THE INTESTATE ESTATE OF THE DECEASED
ANTONIO JAYME LEDESMA, PLAINTIFF AND APPELLANT, VS. J. ANTONIO ARANETA, AS THE
COLLECTOR OF INTERNAL REVENUE, DEFENDANT AND APPELLEE.
G.R. No. L-7859, December 22, 1955

FACTS:
Lutz, in his capacity as judicial administrator of the intestate estate of Antionio Ledesma, sought to
recover from the CIR the sum paid by the estate as taxes, under section 3 of the Sugar Adjustment Act
thereby assailing its constitutionality, for it provided for an increase of the existing tax on the manufacture of
sugar, alleging that such enactment is not being levied for a public purpose but solely and exclusively for the
aid and support of the sugar industry thus making it void and unconstitutional.

ISSUE:
Is the Act constitutional?

HELD:
Yes. The protection and promotion of the sugar industry is a matter of public concern, it follows that
the legislature may determine within reasonable bounds what is necessary for its protection and expedient
for its promotion. Here, the legislative discretion must be allowed to fully play, subject only to the test of
reasonableness; and it is not contended that the means provided in the law bear no relation to the objective
pursued or are oppressive in character. If objective and methods are alike constitutionally valid, no reason is
seen why the state may not levy taxes to raise funds for their prosecution and attainment. Taxation may be
made the implement of the state's police power.
VALENTIN TIO DOING BUSINESS UNDER THE NAME AND STYLE OF OMI ENTERPRISES,
PETITIONER, VS. VIDEOGRAM REGULATORY BOARD, MINISTER OF FINANCE, METRO MANILA
COMMISSION, CITY MAYOR AND CITY TREASURER OF MANILA, RESPONDENTS.
G.R. No. 75697, June 18, 1987

FACTS:
Presidential Decree No. 1987 entitled An Act Creating the Videogram Regulatory Board was
enacted to minimize the economic effects of piracy which gave broad powers to the Board to regulate and
supervise the videogram industry. Tio assailed that Section 10 of the decree which imposes 30% tax on the
gross receipts payable to the LGUs is a rider and is not germane to the subject matter of the law.

ISSUE:
Is PD 1987 a valid exercise of taxing power of the state?

RULING:
Yes. Taxation has been made the implement of the states police power. The levy of the 30% tax is
for a public purpose. It was imposed primarily to answer the need for regulating the video industry, particularly
because of the rampant film piracy, the flagrant violation of intellectual property rights, and the proliferation
of pornographic video tapes. And while it was also an objective of the DECREE to protect the movie industry,
the tax remains a valid imposition.
CITY OF BAGUIO, PLAINTIFF-APPELLEE, VS. FORTUNATO DE LEON, DEFENDANT-APPELLANT.
G.R. No. L-24756, October 31, 1968

FACTS:
De Leon appealed questioning the validity of an ordinance enacted by the Baguio City Council to
collect taxes from real estate dealers. The source of councils power to create such ordinance is RA 329,
thereby amending the city charter empowering it to fix the license fee and regulate business, trades, and
occupations as may be established or practiced in the City. De Leon was obligated to pay a P50 annual fee
it being shown he was engaged in rental and deriving income therefrom. De Leon assailed the validity of the
ordinance arguing that it is ultra vires for there is no statutory authority which expressly grants the City of
Baguio to levy such tax, and that there it imposed double taxation, and violates the requirement of uniformity.

ISSUE:
Is Republic Act 329 sufficient to justify the validity of the ordinance?

RULING:
Yes. RA 329 was enacted amending Section 2553 of the Revised Administrative Code empowering
the City Council not only to impose a license fee but to levy a tax for purposes of revenue, thus the ordinance
cannot be considered ultra vires for there is more than ample statutory authority for the enactment thereof.
The argument against double taxation may not be invoked where one tax is imposed by the state and the
other is imposed by the city, so that where, as here, Congress has clearly expressed its intention, the statute
must be sustained even though double taxation results. The alleged violation of uniformity is out of place it
being widely recognized that there is nothing inherently obnoxious in the requirement that license fees or
taxes be exacted with respect to the same occupation, calling or activity by both the state and the political
subdivisions thereof.