PET R O N C OR P O R A TIO N

V . TIA N C O
1 5 8 8 81 , A PRIL 1 6,2 00 8
GR NO.
FACTS:
Petitioner received Petron duly filed Petron Filed a

May 2002-May 2003

March 2002

May 2002
a letter from the letter protest to complaint with
Mayor respondent the notice of the Malabon
for assessed tax
amounting to
assessment but RTC but was
6,259,000.00 was denied and later on
covering 1997 to followed by “Final dismissed.
2001 Demand to Pay”.

ISSUE: Whether a Local Government Unit is empowered to

empose business taxes on persons or entities engaged
in the sale of petroleum products.
RULING:
EVIDENTLY, SECTION 133 PRESCRIBES THE LIMITATIONS ON THE CAPACITY OF LOCAL
GOVERNMENT UNITS TO EXERCISE THEIR TAXING POWERS OTHERWISE GRANTED TO
THEM UNDER THE LGC. APPARENTLY, PARAGRAPH (H) OF THE SECTION MENTIONS TWO
KINDS OF TAXES WHICH CANNOT BE IMPOSED BY LOCAL GOVERNMENT UNITS, NAMELY:
EXCISE TAXES ON ARTICLES ENUMERATED UNDER THE NIRC; AND TAXES, FEES OR
CHARGES ON PETROLEUM PRODUCTS. THERE IS NO DOUBT THAT AMONG THE EXCISE
TAXES ON ARTICLES ENUMERATED UNDER THE NIRC ARE THOSE LEVIED ON PETROLEUM
PRODUCTS, PER SECTION 148 OF THE NIRC.