1.

Requirement of uniformity and equity in taxation

a. Taxation shall be uniform and equitable

- All taxable articles or properties of the same class shall be taxed at the same rate.
The rule requires the uniform application and operation, without discrimination, of
the tax in every place where the subject of it is found.
- The concept of equity in taxation requires that such apportionment be more or less
just in the light of the taxpayer’s ability to shoulder the tax burden and, if warranted
(in certain cases), on the basis of the benefits he receives from the government. Its
cornerstone is the ability to pay.

b. Progressive System of Taxation

- This means that tax laws shall place emphasis on direct rather than indirect taxation
with ability to pay as the principal criterion.
- To insure and enhance the equity objective, the Constitution enjoins Congress to
“evolve a progressive system of taxation.”

Example of a direct and progressive tax: the individual income tax on

compensation. Business and professional income