Loc Gov Round 1 Compiled

8/3/2019 Loc Gov Round 1 Compiled

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- Zamboanga City, however, invokes the ruling in Pepsi-Cola Bottling


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LocGov A2010ibba Page 25

Zamboanga City, however, invokes the ruling in Pepsi Cola BottlingCompany vs. Municipality of Tanauan, Leyte whereby this Court upheld thevalidity of Municipal Ordinance No. 27 enacted by the Municipality ofTanauan, Leyte imposing a tax of P0.01 for every gallon of softdrinksproduced in the municipality. Said case was decided by this Court on thebasis of the provisions of the Local Autonomy Act. However, the LocalAutonomy Act has been superseded by the Local Tax Code insofar as thetaxing authority in the provinces, cities or municipalities is concerned.- Section 5, Article X of the 1987 Constitution provides "Each local

government unit shall have the power to create its own sources ofrevenues, and to levy taxes, fees, and charges subject to suchguidelines and limitations as the Congress may provide, consistent withthe basic policy of local autonomy." Ordinance No. 44 of public respondentZamboanga City traverses the limitations set by the Local Tax Code.- As to the issue of prescription:It is contended that since the Minister of Finance failed to act or otherwisesuspend the effectivity of the tax ordinance within 120 days from receipt of acopy thereof, said Ordinance is valid and remains in force. There is noauthority under Sec.44 of the Local Tax Code for this conclusion. All that isprovided therein is that if the Secretary of Finance "takes no action as

authorized in this section, the tax ordinance shall remain in force." Even ifthe Secretary of Finance failed to review or act on the Ordinance within theprescribed period of 120 days it does not follow as a legal consequencethereof that an otherwise invalid ordinance is thereby validated.Consequently even after the prescribed period has lapsed, should theSecretary of Finance, upon review, find that the tax or fee levied or imposedis unjust, excessive, oppressive, confiscatory, or not among those that theparticular local government may impose in the exercise of its power inaccordance with this Code; or when the tax ordinance is, in whole or in part,contrary to the declared national economic policy; or when the ordinance isdiscriminatory in nature on the conduct of business or calling or in restraintof trade, the Secretary of Finance may certainly suspend the effectivity of

such ordinance and revoke the same.

DISPOSITIVE

Petition. Ordinance No. 44 is null and void.

Loc Gov Round 1 Compiled

Documents

Transcript of Loc Gov Round 1 Compiled