Tolentino v.

Secretary of Finance

G.R. No. 115455; October 30, 1995

TOPIC: Constitutional Law, RA 7716, VAT

FACTS:

PPI contends that by removing the exemption of the press from the
VAT while maintaining those granted to others, the law
discriminates against the press. CREBA asserts that R.A. No. 7716
impairs the obligations of contracts, and violates the rule that taxes
should be uniform and equitable and that Congress shall “evolve a
progressive system of taxation”.

CUP argues that legislature was to adopt a definite policy of

granting tax exemption to cooperatives that the present
Constitution embodies provisions on cooperatives. To subject
cooperatives to the VAT would, therefore, be to infringe a
constitutional policy.

ISSUE:

Whether or not RA 7716 is unconstitutional.

RULING:

No. In withdrawing the exemption, the law merely subjects the

press to the same tax burden to which other businesses have long
ago been subject. The VAT is not a license tax. It is imposed purely
for revenue purposes.

Equality and uniformity of taxation mean that all taxable articles or

kinds of property of the same class be taxed at the same rate. It is
enough that the statute or ordinance applies equally to all persons,
firms, and corporations placed in similar situation.