Q: May the power of taxation be delegated?A:GR:
No, since it is essentially a legislativefunction.
is based upon the principle that “taxes are a
grant of the people who are taxed, and the grantmust be made by the immediate representativesof the people. And where the people have laid the
power, there it must be exercised.” (
To local governments in respect of matters of local concern to be exercisedby the local legislative bodies thereof.
(Sec. 5, Art. X, 1987 Constitution)
When allowed by the Constitution.
The Congress may, by law,authorize the President to fix withinspecified limits, subject to such limitationsand restrictions as it may impose, tariff rates, import and export quotas, tonnageand wharfage dues and other duties orimposts within the framework of thenational development program of thegovernment.
(Sec. 28 , Art. VI, 1987 Constitution)
When the delegation relates merely toadministrative implementation thatmay call for some degree of discretionary powers under a set of sufficient standard expressed by law(
Cervantes v. Auditor General, G.R. No.L-4043, May 26, 1952)
or implied fromthe policy and purpose of the act.
Technically, this does not amount toa delegation of the power to tax becausethe questions which should bedetermined by Congress are alreadyanswered by Congress before the tax lawleaves Congress.
Q: What is the scope of legislative power intaxation?A:
The following are the scope of legislativepower in taxation:1.
The determination of: [
ubjects of taxation (persons,property, occupation, excises orprivileges to be taxed, providedthey are within the taxing jurisdiction)b.
mount or Rate of taxc.
urposes for which taxes shall belevied provided they are publicpurposesd.
ethod of collection
This is not exclusive toCongress.
pportionment of the tax (whetherthe tax shall be of generalapplication or limited to aparticular locality, or partly generaland partly local)f.
ind of tax to be collectedg.
itus of taxation2.
The grant tax exemptions andcondonations.3.
The power to specify or provide foradministrative as well as judicialremedies
(Philippines PetroleumCorporation v. Municipality of Pililla,G.R. No.85318, June 3, 1991).
Q: In order to raise revenue for the repair andmaintenance of the newly constructed City Hallof Makati, the City Mayor ordered the collection
of P1.00, called “elevator tax”, every time a
person rides any of the high-tech elevators in theCity Hall during the hours of 8am to 10am and4pm to 6pm. Is the elevator tax a validimposition?
No. The imposition of a tax, fee or charge orthe generation of revenue under the LocalGovernment Code, shall be exercised by theSanggunian of the local government unitconcerned through an appropriate ordinance
[Sec. 132, LGC]
. The city mayor alone could notorder the collection of the tax; as such, the
“elevator tax” is an invalid imposition.
Q: Discuss the Marshall dictum “The power totax is the power to destroy” in the Philippine
The power to tax includes the power todestroy. Taxation is a destructive power whichinterferes with the personal and property rightsof the people and takes from them a portion of their property for the support of thegovernment.
(McCulloch vs. Maryland, 4 Wheat,316 4 L ed. 579, 607)
It is more reasonable to say that the maxim
“the power to tax is the power to destroy” is to
describe not the purposes for which the taxingpower may be used but the degree of vigor with