LIMITATIONS ON THE POWER OF TAXATION:

One can easily see the almost boundless range of the power. Thus, the power to impose tax has aptly
been described as “one so unlimited in force and so searching in extent that the courts scarcely venture
to declare that it is subject to any restrictions whatever, except such as rest in the discretion of the
authority which exercises it.” (Churchill vs Conception)

The power is not without limitations. These limitations may be classified into:

 Constitutional limitations – those expressly found in the Constitution or implied from its
provisions; and
 Inherent limitations – those which restrict the power although they are not embodied
in the Constitution.

1. Enumeration of the limitations

CONSTITUTIONAL INHERENT
a. due process of law; a. Requirement that levy must be for a
b. equal protection of the laws; public purpose (also implied from the
c. rule of uniformity and equity in taxation; Constitution);
d. no imprisonment for non-payment of a b. Non-delegation of the legislative power
poll tax; to tax (also implied from the
e. non-impairment of the obligation of Constitution);
contracts; c. Exemption from taxation of government
f. non-infringement of religious freedom; entities;
g. no appropriation for religious purposes; d. International comity; and
h. exemption of religious, charitable, and e. Territorial jurisdiction.
educational entities, non-profit
cemeteries, and churches from property
taxation;
i. exemption of non-stock, non-profit
educational institutions from taxation;
j. concurrence by a majority of all members
of Congress for the passage of a law
granting tax exemption;
k. power of the President to veto any
particular item or items in a revenue or
tariff bill; and
l. non-impairment of the jurisdiction of the
Supreme Court in tax cases.