You are on page 1of 5

19Taxation powers and initiative and referendum Actually, initiative and referendum is no longer the power of the congress

but the power of the people. So war powers, para hindi ako ma bore. Section 21, Paragraph 1 and 2. Von Lao : Section 23 (1) The Congess, by a vote of two-thirds of both Houses in joint session assembled, voting separately, shall have the sole power to declare the existence of a state of war. (2) In times of war or other national emergency, the Congress may, by law, authorize the President, for a limited period and subject to such restrictions as it may prescribe, to exercise powers necessary and proper to carry out a declared national policy. Okay, in paragraph 1 what is that power that may be exercised by the Congress? To declare a state of war. Declare a state of war, can you recall what is our national policy on war?

The Philippines renounces war as part of its national policy.
So what kind of war are we renouncing?

Yes, we are renouncing offensive war to the point that if China will attack us, we will not do anything. Is that correct?

So what kind of war are we renouncing? Aggressive kind. Yes, we are renouncing offensive wars also. My point is, under section 23 paragraph 1, the Congress can declare a state of war. So, does that mean there can be war anytime? What does that mean? Because we are renouncing offensive wars, what kind of war can the Congress declare? Okay, when there is a need to defend. Now, it is the Congress which has the power or sole authority to declare a state of war. What happens now if there is an actual war, when we’re being attacked? Can the President do something? Yes? What is the authority of the President? Okay, to defend the country. What is now the purpose of declaring a state of war? Did you think about it? Kung may mag attack sa atin? Of course, the President has to defend the country. Through his commander-in-chief powers, he can call the military. What is now the purpose of this provision?

To unite the people.
So for one, the President cannot declare war, it should be with the authority of the Congress. Now, when the Congress declares a state of war, all measures may be addressed to that war. So in other words, the Congress can enact measures for the support of war. So that’s the importance or relevance of this provision. What about Section 23, paragraph 2? Exercise of emergency power. When is emergency power granted? Okay, in times of war on a national emergency, the Congress may grant emergency powers. And what is the effect of that emergency power? What kind of powers may be granted to the President? Powers necessary to carry out a declared national policy. What does the mean in other words? Any power that may be necessary to carry out declared national policy. So, in other words the President may not only issue or promulgate rules and regulations which is an executive power but he can go the extent of exercising even legislative powers. So when the President is granted emergency powers, that may include the power to legislate. In other words, recall that there is that principle of non-delegability of legislative powers so this is one of those permissible delegation of legislative powers. So this is subject to several limitations. What are the limitations under section 23, paragraph 2? *Von answers* Okay so these are the commissions for the grant on the power. Another one,

this involves the Safeguard Measures Act enacted by Congress immediately after we enter the general agreement on tariff rates and after we got ourselves involved in the World Trade Organization Agreement. tonnage and wharfage dues. Just like the power to legislate. it is not to be read as there is an intention that the Congress should first authorize the President before he can declare a state of national emergency. So now. The power of taxation belongs exclusively to the Congress. So as an exemption to the power of taxation the Congress may delegate certain legislative power involving the imposition of tariff rates. this again involves legislation by the President to fix fees. In the same way. If there is no period provided? Okay. So another exception to the principle of non-delegability of legislative power. etc. and other duties or imposts. The exception is provided by the Constitution itself. national and economic development authority or the world trade organization no matter how insistent or persistent these bodies may be. So. Lao. In other words. in the exercise of emergency powers there is a needed delegation by the legislative department. Now in Southern vs Cement. The first argument or the first issue assailed by the petitioners is that the President has no authority to declare a state of emergency. Permissible because it is the Constitution itself which provides or which allows that delegation. It means. and other duties or imposts within the framework of the national development program of the Government. Meaning. Let’s go to power of taxation. Can the Congress withdraw it anytime? Yes. So. by law. tonnage and wharfage dues. and other duties or imposts. currently now we have this condition of emergency. SMA or the Sagefuard Measures Act provides for the structure and mechanics for the imposition of emergency measures including tariffs to prevent domestic industries and producers from increased imports which may inflict serious injury on debt (them). the Safety . the President may validly declare the existence of a state of national emergency even in the absence of Congressional enactment because what does the President do when he declares a state of emergency? He is merely announcing the existence of a condition. Remember with the GAT and the World Trade Organization Agreement. this power to impose tariff dues. it will cease automatically upon the next adjournment of the Congress. import and export quotas. it could only be via a resolution. import and export period only. there is no need for the approval of the President. can the President now automatically exercise emergency powers? No. So. In this case of David vs. A law has to be enacted delegating this power or emergency power. it now depends on the Congress whether or not the President may exercise emergency powers. Conclusion. Nothing follows when there is no implied additional powers to the President just by virtue of that declaration. reading section 23 paragraph 2. there is an exemption of this power of taxation. In other words. paragraph 2. is permissible delegation. Now. In other words. we can hire Chinese to be our laborers in the Philippines. the only rule is that in section 28 paragraph 1 The rule of taxation shall be uniform and equitable. This can be delegated to the President pursuant to paragraph 2: The Congress may. In other words. In fact. How? By means of a resolution. Pursuant to Section 23. This is the sole exclusive powers of the Congress. import and export quotas. there is now a free flow of goods between countries. So it can be as broad or as narrow as the Congress may desire. authorize the President to fix within specified limits. it is easier to withdraw than to grant because when we say a law. the Supreme Court explains that this provision has basic postulates. The Congress shall evolve a progressive system of taxation. and subject to such limitations and restrictions as it may impose. In the latter case. they could import services from the Philippines for their factories. the power of taxation is exclusively the power of Congress. when it comes to resolution. the Supreme Court had the occasion to somehow distinguish the power to declare a state of emergency and the exercise of emergency powers. good and services. Thus. Number 1. the authority cannot come from the finance department. pwede Mr. the next question would be if the President declares that we are experiencing a state of emergency. the President issued or declared a state of emergency. there must be an approval made by the President at its final stage. there’s a state of emergency. In Southern vs Cement. And the emergency powers are subject to such restrictions as the Congress may provide. is it correct? Now. tonnage and wharfage dues. in the case of David vs Macapagal-Arroyo. tariff rates. Now. that that is pursuant to a law but the withdrawal is only pursuant to a resolution. declaration of state of emergency does not carry with it the power to exercise or the authority to exercise emergency powers. Now. export and import quotas. Macapagal-Arroyo. Generally. it is the Congress which authorizes the President to impose tariff rates.

So as explained by Chief Justice Davide. the commercial spaces in the building would be assessed for taxation purposes. So in that case. So as long as the income is used for charitable purposes. According to the Lung Center of the Philippines. this may be specified or limited by the Congress. whatever authorization is granted to the President.463 sqm. the Congress must authorize the President. So with the case of Lung Center. Ateneo de davao University is engaged in educational purposes. Lung Center was established pursuant to a Presidential decree. charitable. Authotization ata ni) granted to the President has been embodied in a law. or educational purposes shall be exempt from taxation. Now there’s that clamor for the President to impose certain tariffs or duties on imported goods. non-profit cemeteries. But what did we say about section 28 paragraph 3? The exemption is not on the institution itself but on the land or building on that property. at the middle of the property. we are assessed and we pay our real property taxes. Now. vocalization (what? La ko kadungog ug tarong saba kayo si Algene. So. the exception is not on the institution itself. the Quezon City government assessed Lunch Center of the Philippines real property tax in the amount of 4. Annually. the executive branch has no authority to impose tax involving the importation of foreign goods. That spaces there are rented out to tenants for commercial purposes particularly doctors for their medical practice. it is a charitable institution and it remains to be a charitable institution notwithstanding that it uses or rents out some parts of its property for commercial purposes because anyway the income would be used for their charitable purposes. If the Congress chooses not to impose duties on the importation of corn. and exclusively used for religious. and directly used for their charitable purposes would be exempted. can you say that the Jesuits are enjoying exception from taxation based on this provision? Yes or No? * Belinda: Only in property taxes* Yes. only those portion of the building and the portion of the land which are actually. now that would be implemented or enacted by the Congress and not by the President. So without section 28 paragraph 2 of article 6. it should be exempt from real property taxation. It is a non stock and non profit organization. actually. and . land which is idle. Meron din kayo nian sa mga bahay ninyo. Now. Now. We have the case of Lung Center vs. churches and personages or convents appurtenant thereto. So. Now what is meant by the exclusive use of the property? This is an immediate and actual application which the charitable institutions. Quezon City. mosques. that lot is vacant and it is idle and serves no purpose. That is a big property. Now. As to the right part or portion of that property. 12 hectares more or less. But as to the tax exemption. The question is. No part of the income goes to the private individual. they used them for their clinics and they charge their clients who will come to their clinic.Measures Act was enacted to provide for some safety nets to protect domestic goods or local goods and services. and all lands. the building is devoted for the care of patients but the ground or first floor is devoted for as commercial spaces. so this provision should be understood as an exception only as to the taxes on land and buildings and not only that. Let’s go to paragraph 3: Charitable institutions. the authorization of the President can be exercised only within the specified limits set in the law and is further subject to limitations and restrictions which Congress may impose. With all the improvements that we have here. Again. Sp the Supreme Court said on the issue whether or not it is a charitable institution. Okay. paragraph 3. Second basic postulate. there must be a law. actually for educational purposes. actually. buildings. The hospital is located only at the center. directly. churches or educational institutions are organized. who can authorize the President to impose these duties? It is only Congress. The rest. the President cannot impose duties on corn. they remain an institution for charitable purposes. the land or buildings must be devoted exclusively. the exception is only on land and buildings. and improvements. So charitable institutions and the income is used for its charitable purposes. it is a registered owner of a very vast parcel of land with an area of 121. only on the property taxes – land and building.. land which has been rented to another corporation. directly. this is only a permissible delegation of legislative power. the President cannot impose tariff rates that would exceed such amount. In other words.5M. So if the congress specifies that the tariff rates should not exceed a given amount. Third is that. a large portion is rented out for another company for their commercial purposes. So that what is meant by directly. Now. the Supreme court does not argue with that. If there is an agreement in the World Trade Organization agreement for the Philippines to comply with. as with the left portion of that land. what is exempted is not the institution itself but only the land and buildings or the real property taxes that is the annual assessment by the local treasurer. charitable purpose or religious purpose. so na-shock ang Lung Center that’s why they applied for an exemption based on this constitutional provision section 28.

we can reject laws submitted to the people for approval or rejection. They enacted it as early as in 1989. what are the appropriate subjects of local initiative and referendum? . And a consequent relief to some extent are the burden upon the State to care for and advanced the interest of its citizens. legislative power is vested in the Congress except to the extent reserved to the people through the system of initiative and referendum. whereby the people can directly propose and enact laws or approve or reject any act or law or part thereof passed by the Congress or local legislative body after the registration of a petition therefor signed by at least ten per centum of the total number of registered voters. we cannot exercise the power of initiative and referendum. So the general rule is that the provisions in the provision are supposed to be self-executing as unless otherwise provided. Paragraph 4. that’s the time the Congress is mandated to enact something to implement that provision. So. Not only that. In other words if the Congress does not enact any law. as early as possible. How much do we want that power? We would want it badly.A 7035. we can amend laws. Under section 1 of Article 6. and the exceptions therefrom. One of the exemptions would be the criminal aspect. So. Now. It is also violative of the Constitutional rule that taxation should be uniform and equitable. the Supreme Court said it is based on the benefit for the public. So you bare exempted on all forms of property taxation then they are treated differently from those who are similarly stated. But that’s not our concern. if makakita kayo na pursuant to a law. the Congress needs to enact a law. as early as possible. with the Marcos having the privilege to retain some and then they will be granted certain exemptions. So if the Congress does not enact a law providing for that system of initiative and referendum. Not only limitation or requirement by the Constitution. Why? Because we can legislate by virtue of that power. They enacted R. what’s the purpose of having a constitution when we give the Congress the discretion whether or not to legislate a law implementing the provisions of the Constitution. No law granting any tax exemption shall be passed without the concurrence of a majority of all the Members of the Congress. So. PCGG is the Presidential Commission on Good Governance. The power to exempt from taxation is also exclusively the power of the Congress. Okay. useless ang ating Constitution. INITIATIVE & REFERENDUM Section 32: The Congress shall. its main function for its existence is to go after the ill-gotten wealth of the Marcoses. Only the Congress may grant tax exemption. the petition should be signed by 10% of the total registered voters of which every legislative district must be represented by at least 3% of the registered voters thereof. So the people can now directly propose or enact laws or approve or reject any act or law or part thereof passed by Congress or local legislative body. in the local set-up. So that is why this provision is important to us. the power to tax is exclusively within the power of the Congress. they have the power and the power to legislate is vested in them. Why include local legislative body? Because they have. we can enact laws. But that is the reason why these institutions are exempted from taxation? As discussed in Lung Center. So in exchange for the return of the most of the properties of the Marcoses. Sige pud katawa). Another one would be the tax exemption. based on what you read can we now exercise the power of initiative and referendum invoking only section 32?*Mimay answers* As a general rule of construction. we have the case of Chavez vs PCGG. The question now is “Is that commitment valid?” Of course it’s not based on paragraph 4.exclusive use for charitable purposes. Yung unless otherwise provided. of which every legislative district must be represented by at least three per centum of the registered voters thereof. the constitution deems it proper to exempt them because it relieves them the burden of the State to take care of its citizens. The Congress shall. the Constitution is supposed to be self-executory otherwise. The PCGG in the compromise agreement. So. section 32 is not self executing. So that is unconstitutional based on paragraph 4. (Kani si Cute-amora sige’g tubag-tubag ba. is there such a law? Fortunately yes. committed to give or to grant the Marcoses exemption on all forms of taxes over their properties that are to be retained by them. the Constitution requires a conference of an absolute majority. provide for a system of initiative and referendum. So question now is. provide for a system of initiative and referendum. whatever the system will be. That commitment is also unconstitutional based on equal protection of laws. They came to a point that they came to enter into a compromise agreement with the Marcoses.

now that will be deliberated in the Congress and will be enacted by the Congress. So that’s indirect initiative. So the voters would just simply write yes or no in the ballot whereas in initiative. Now.. Any act – so. So the proposal came from the people but the ultimate enactment of it (law) is done by the Congress. Is there a distinction between initiative and a referendum? And if there is. In a referendum. Therefore. yes or no because it’s only for approval or rejection of a legislation enacted by the Congress. So we can deduce that if there is initiative compares to a referendum dba? It’s initiative actually but eventually pareho pa roin to accept or reject a proposal. it may denote something done as a legislature including not merely physical acts but also decrees. resolution or ordinance enacted by regional assemblies and local legislative bodies. it is merely an expression of a will. Initiative is the process of lawmaking by the people themselves without the participation or even against the wishes or desires of their elected representatives while referendum consists merely of the electorate approving or rejecting what has been drawn out or enacted by the legislative body. What is a resolution. by the way? A resolution generally is merely an expression of an intention. it starts with the proposing of the law itself so there is a need therefore for the Comelec to supervise an initiative more closely. is the distinction material? In the case of SBMA vs Comelec. on the other hand. and (2) Referendum on local law which refers to a petition to approve or reject a law. it is the lawmaking body which submits it to the people. or part thereof. when they opposed the resolution and not only that. Ordinance is the local law. in continuation of that dilemma of the petitioners in Garcia vs Comelec. Bataan passed a resolution of the inclusion of the municipality as part of the Subic Special Economic Zone under Republic Act 7227. extending not only to the counting of votes but also see to it that the matter or acts of the people is in the proper form so it may easily be understood and voted upon by the electorate.In Garcia vs Comelec. the processes involved in an initiative is more complex than in a referendum. resolves. passed by Congress. the constituents of the municipality did not like the resolution or opposed that resolution and they filed this petition to annul the resolution. prepared no for the holding of an initiative but for the holding of a referendum. Referendum. Kung mali ang pinrepare ng Comelec. A resolution therefore is an act. The petitioners here. will it stay allowed for the holding of an initiative or masasayang lang ba ang effort ng petitioners? So the SC had the occasion to distinguish initiative from referendum? What is initiative? It is the power of the people to propose amendments in the Constitution or to propose and enact legislation through an election called for the purpose. Initiative is entirely the work of the electorate while referendum is begot by the lawmaking body and is consented to by the lawmaking body. act according to the Supreme Court is defined by Black as an expression of will or purpose. There is also that term as indirect initiative – the exercise of initiative by the people through a proposition sent not for the approval or rejection of the people. edicts. that is more appropriate when we discuss amendments and revisions of the constitution. that law we were talking about. we give it to our Congressman. laws. is the power of the electorate to approve or reject legislation through an election called for the purpose. It’s different from an ordinance because an ordinance takes the form of a law for rights to be established. on the other hand. it is a proper subject for local initiative. the municipal council of Morong. law on a system on does not cover initiative on the amendments of the Constitution (enactment of a local law) . So let’s distinguish. a resolution to be a proper subject for local initiative. So it is the power of the people to propose bills and laws independent of the legislative body. Now. they propose certain amendments to the provision. referendum. judgments. The Comelec. the Comelec denied the petition citing that what they intend to be annulled is a resolution and not an ordinance. So based on this distinction. So the Supreme Court said. indirect initiative we make the proposal as people. As with Santiago vs comelec. expressions of intentions of the body. initiative is resorted to by the people directly either because the lawmaking body fails to enact a law or bill which the people does not desire. Read that in section 32. Referendum. It may be of two class: (1) Referendum on statutes which refers to a petition to approve or reject an act or law.. what is submitted to the people is only the question. the people can directly propose and enact laws or approve or reject any act or law or part thereof. competent as it is. So that’s one distinction. di’ba nag propose tayo sa people then you submit it for approval or rejection in an initiative. here the lawmaking body submits to the people or to the voters for approval or rejection any ordinance or resolution which is duly authorized or approved by the lawmaking body. They proposed new terms and conditions for the inclusion in the Special Economic Zone so they petitioned for a holding of an initiative. When it comes to a resolution. awards and determinations. Initiative comes from the people. what is expected is only. Initiative is also an election form. So in gist no.