LIMITATION ON THE POWER TO TAX

Taxation is an inherent power of the government exercised through the legislature to impose burdens upon the subjects and objects within its jurisdiction for raising revenues to carry out the legitimate objects of the government.

It draws from the Necessity theory that the existence of the government is a necessity and it cannot continue without a means to pay its expenses and therefore has a right to compel all citizens and property within its power to contribute.

Another theory presents the Benefit !rotection or "eciprocity Theory cited from the case of #I" vs. Algue$ No. % &''() which provides that every person who is able must contributed in the burden of running the government. The *overnment for its part is expected to respond in the form of tangible and intangible benefits intended to improve the lives of the people and enhance their material and moral value. +oreover$ in the same theory$ %orenzo vs. !osadas provides that special benefits to taxpayers are not re,uired. A person cannot object to or resist the payment of taxes solely because no personal benefit to him can be pointed out arising from the tax.

-ven though the !ower of Taxation is an inherent power of the government$ still it cannot be imposed without any limitations and a violation of the limitations !epsi #ola vs. +unicipality of Tanauan$ )( .#"A /)0.

%imitations of taxation can be classified into two namely$ Inherent limitation which proceeds from the very nature of the taxing power itself and the #onstitutional %imitations from which the restrictions are set forth by the #onstitution and can further be classified into a1 *eneral or indirect limitation b1 specific or direct limitation.