Association of Custom Brokers vs.

Manila
GR L-4376, 22 May 1953
En Banc, Bautista-Angelo (J): 3 concur, 4 concur in result

FACTS:
The Association of Customs Brokers, which is composed of all brokers and public service operators of
motor vehicles in the City of Manila, challenges the validity of Ordinance 3379 on the grounds (1) that while it
levies a so-called property tax, it is in reality a license tax which is beyond the power of the Manila Municipal
Board; (2) that said ordinance offends against the rule on uniformity of taxes; and (3) that it constitutes double
taxation.

ISSUE: Whether the ordinance infringes on the rule on uniformity of taxes as ordained by the Constitution.

HELD:
While the tax in the Ordinance refers to property tax and it is fixed ad valorem, it is merely levied on all
motor vehicles operating within Manila with the main purpose of raising funds to be expended exclusively for the
repair, maintenance and improvement of the streets and bridges in said city. The ordinance imposes a license fee
although under the cloak of an ad valorem tax to circumvent the prohibition in the Motor Vehicle Law.
Further, it does not distinguish between a motor vehicle for hire and one which is purely for private use.
Neither does it distinguish between a motor vehicle registered in Manila and one registered in another place but
occasionally comes to Manila and uses its streets and public highways. The distinction is necessary if his ordinance
intends to burden with tax only those registered in Manila as may be inferred from the word “operating” used
therein. There is an inequality in the ordinance which renders it offensive to the Constitution.