Eastern Theatrical Co.

v Alfonso
Perfecto, J.
1949
Facts
The Municipal Board of the City of Manila enacted Ordinance No. 2958 which imposes a
fee on the price of every admission ticket sold by theaters and other similar amusement
establishments. The fees imposed are graduated according to the price of the ticket sold.
Twelve corporations (Petitioners) engaged in the motion picture business instituted a
complaint in the CFI to impugn the validity of the ordinance.
CFI upheld the validity of the ordinance and held that:
o Under Sec 2444(m) of the Revised Administrative Code (RAC), the City of
Manila had the power to enact the ordinance.
o Sec 2444(m) of the RAC was not repealed by the NIRC nor the power granted by
it withdrawn.
o Ordinance did not violate the principle of equality and uniformity of taxation.
Issues and Arguments:
1. WON ordinance was enacted beyond the charter powers of the City of Manila?
Petitioners: Sec 2444(m) of the Revised Administrative Code, which grants to the
City the power to regulate theaters, confers only the power to tax on business but
not on amusement.
2. WON Sec 2444(m) of the RAC has been impliedly repealed by the NIRC?
Petitioners: Since the NIRC was passed later the RAC and since both taxing
powers cover the same field of legislation, Sec 2444(m) of the RAC must have
been repealed by the NIRC and consequently, the power to regulate theaters
granted to the City was withdrawn.
3. WON the ordinance violates the principle of equality and uniformity of taxation
enjoined by the Constitution?
Petitioners: Ordinance does not tax other kinds of amusements (e.g. race tracks,
cockpits, cabarets, concert halls)
Held and Ratio:
1. NO. The tax imposed by Sec 2444(m) cannot be defined as and be restricted to tax on
business. The fact that said section includes theaters and similar amusement
establishments shows that the power to tax amusement is expressly included within the
power granted by Sec 2444(m).
2. NO. Both provisions of law may stand together and enforced at the same time.
3. NO. Equality and uniformity of taxation means that all taxable articles or kinds of
property of the same class shall be taxed at the same rate. The taxing power has the
authority to make reasonable and natural classifications for purposes of taxation.
Petitioners cannot point out what places of amusement do not constitute a class by
themselves and which can be confused with those not included in the ordinance.