PEPSI-COLA vs MUNICIPALITY OF TANAUAN G.R. No. L-31156 Februar !"# 1$"6 Fa%&s' T(e )u*+%+,a+& o Ta*aua*# Le&e e*a%&e/ &0o or/+*a*%es +* 1$6!' T(e rs& o*e# Mu*+%+,a Or/+*a*%e Or/+*a*%e No. !3 ev+es ev+es a*/ %oe%&s 2from 2from soft drinks producers and manufacturers a manufacturers a &a o one-sixteenth (1/16) of a centavo for every bottle of soft drink corked.2 corked.2 For &(e ,ur,ose o %o),u&+*4 &(e &aes /ue# &(e ,erso*# r)# %o),a* or %or,ora&+o* ,ro/u%+*4 so& /r+*s s(a sub)+& &o &(e Mu*+%+,a Treasurer a )o*&( re,or&# o &(e total number of bottles ,ro/u%e/ bottles ,ro/u%e/ a*/ %ore/ /ur+*4 &(e )o*&(. Mu*+%+,a Or/+*a*%e No. !" ev+es a*/ %oe%&s 2on 2 on soft drinks produced or manufactured 0+&(+* &(e &err+&or+a ur+s/+%&+o* ur+s/+%&+o* o &(+s )u*+%+,a+& a &a o ONE EN!"#O ($%&%1) on each 'allon (1 *uid ounces+ ,&&) of volume capacity .2 .2 For &(e ,ur,ose o %o),u&+*4 &(e &aes /ue# &(e ,erso*# r)# %o),a*# ,ar&*ers(+,# %or,ora&+o* or ,a*& ,ro/u%+*4 so& /r+*s s(a sub)+& &o &(e Mu*+%+,a Treasurer a )o*&( re,or& o &(e total number of 'allons ,ro/u%e/ 'allons ,ro/u%e/ or )a*ua%&ure/ /ur+*4 &(e )o*&(. Pe,s+-Coa %o))e*%e/ a %o),a+*& 0+&( ,re+)+*ar +*u*%&+o* beore &(e Cour& o F+rs& I*s&a*%e o Le&e or &(a& %our& &o /e%are Se%&+o* ! o &(e Lo%a Au&o*o) A%& u*%o*s&+&u&+o*a as a* u*/ue /ee4a&+o* o &a+*4 au&(or+& as 0e as &o /e%are Or/+*a*%es Nos. !3 a*/ !" *u a*/ vo+/. Se%&+o* ! o &(e Lo%a Au&o*o) A%& o 1$5$ ,rov+/es' 7# a %(ar&ere/ %+&+es# )u*+%+,a+&+es a*/ )u*+%+,a /+s&r+%& s(a (ave au&(or+& &o +),ose )u*+%+,a +%e*se &aes or ees u,o* ,erso*s e*4a4e/ +* a* o%%u,a&+o* or bus+*ess# or eer%+s+*4 eer%+s+*4 ,r+v+e4es +* %(ar&ere/ %+&+es# )u*+%+,a+&+es or )u*+%+,a /+s&r+%&s .8 Pe,s+ Pe,s+ sa+/ bo&( Or/+*a*%es Nos. !3 a*/ !" e)bra%e or %over &(e sa)e sube%& )a&&er a*/ &(e ,ro/u%&+o* &a ra&es +),ose/ &(ere+* are ,ra%&+%a ,ra%&+%a &(e sa)e# a*/ se%o*/# &(a& o* 9a*uar 1"# 1$63# &(e a%&+*4 Mu*+%+,a Treasurer o Ta*aua*# Le&e# as ,er (+s e&&er a//resse/ &o &(e Ma*a4er o &(e Pe,s+-Coa :o&&+*4 Pa*& +* sa+/ )u*+%+,a+&# sou4(& &o e*or%e %o),+a*%e b &(e a&&er o &(e ,rov+s+o*s o sa+/ Or/+*a*%e No. !" ser+es o 1$6!. Issues' 1. ; Is Se%&+o* !# Re,ub+% A%& No. !!6< a* u*/ue /ee4a&+o* o ,o0er# %o*s%a&or a*/ o,,ress+ve a*/ +*va+/ as /oube &aa&+o*= !. ; >o Or/+*a*%es Nos. !3 a*/ !" %o*s&+&u&e /oube &aa&+o* a*/ +),ose ,er%e*&a4e or s,e%+% &aes= &aes= 3. ; Are Or/+*a*%es Nos. !3 a*/ !" u*us& a*/ u*a+r= ?e/' 1. As to undue delegation' T(e rue +s &(a& &(e ,o0er o &aa&+o* &a a&+o* +s ,ure e4+sa&+ve a*/ %a**o& be /ee4a&e/. T(e e%e,&+o*# (o0ever# +es +* &(e %ase o )u*+%+,a %or,ora&+o*s. Legislative powers may be delegated to local governments in respect of matters of local concern. : *e%essar +),+%a&+o*# &(e e4+sa&+ve ,o0er &o %rea&e ,o+&+%a %or,ora&+o*s or ,ur,oses o o%a se-4over*)e*& se-4over*)e*& %arr+es 0+&( +& &(e ,o0er &o %o*er o* su%( o%a 4over*)e*&a a4e*%+es &(e ,o0er &o &a. Moreover# Moreover# u*/er &(e Ne0 Co*s&+&u&+o*# o%a 4over*)e*&s are 4ra*&e/ &(e au&o*o)ous au&(or+& &o %rea&e &(e+r o0* sour%es o reve*ue a*/ &o ev &aes. The plenary nature of the taxing power thus delegated, contrary to plainti-appellant's pretense, would not suce to invalidate the said law as conscatory and oppressive.
As to the ordinances being conscatory and oppressive' !he takin' of property .ithout due process of la. may not be passed over under the 'uise of taxin' po.er . T(+s +s *o& &o sa &(ou4( &(a& the constitutional inunction a'ainst deprivation of property .ithout due process of la. may be passed over under the 'uise of the taxin' po.er+ po.er+ except .hen the takin' of the property is in the la.ful exercise of the taxin' po.er # as
0(e* @1 the tax is for a public purposeB @! the rule on uniformity of taxation is observedB @3 e+&(er &(e person or property taxed is .ithin the urisdiction of the 'overnment levyin' the tax B a*/ @< in the assessment and collection of certain kinds of taxes notice and opportunity for hearin' are provided. >ue ,ro%ess /oes *o& reu+re &(a& &(e ,ro,er& sube%& &o &(e &a or &(e a)ou*& o &a &o be ra+se/ s(ou/ be /e&er)+*e/ b u/+%+a +*u+r# a*/ a *o&+%e a*/ (ear+*4 as &o &(e a)ou*& o &(e &a a*/ &(e )a**er +* 0(+%( +& s(a be a,,or&+o*e/ are 4e*era *o& *e%essar &o /ue ,ro%ess o a0.
As to the municipal ordinance being invalid on the ground of double taxation resu&+*4 or /ee4a&+o* b &(e Na&+o*a Gover*)e*&' There is no validity to the assertion that the delegated authority can be declared unconstitutional on the theory of double taxation . I& )us& be observe/ &(a& &(e /ee4a&+*4 au&(or+& s,e%+es &(e +)+&a&+o*s a*/ e*u)era&es &(e &aes over 0(+%( o%a &aa&+o* )a *o& be eer%+se/. Double taxation becoes obnoxious only where the taxpayer is taxed twice for the benet of the sae governental entity or by the sae !urisdiction for the sae purpose+ but not in a case where one tax is iposed by the "tate and the other by the city or unicipality . !. T(ere +s *o /oube &aa&+o* (ere. Or/+*a*%e No. !3# &(e rs& &a# ev+es or %oe%&s ro) so& /r+*s ,ro/u%ers or )a*ua%&urers a &a o o*e-s+&ee* @1D16 o a %e*&avo or ever bo&&e %ore/# +rres,e%&+ve o &(e vou)e %o*&e*&s o &(e bo&&e use/. (e* +& 0as /+s%overe/ &(a& &(e ,ro/u%er or )a*ua%&urer %ou/ +*%rease &(e vou)e %o*&e*&s o &(e bo&&e a*/ s&+ ,a &(e sa)e &a ra&e# &(e Mu*+%+,a+& o Ta*aua* e*a%&e/ Or/+*a*%e No. !" +),os+*4 a &a o o*e %e*&avo @P.1 o* ea%( 4ao* @1! Hu+/ ou*%es# U.S. o vou)e %a,a%+&. T(e /+ere*%e be&0ee* &(e &0o or/+*a*%es %ear +es +* &(e &a ra&e o &(e so& /r+*s ,ro/u%e/' +* Or/+*a*%e No. !3# +& 0as 1D16 o a %e*&avo or ever bo&&e %ore/B +* Or/+*a*%e No. !"# +& +s o*e %e*&avo @P.1 o* ea%( 4ao* @1! Hu+/ ou*%es# U.S. o vou)e %a,a%+&. T(e +*&e*&+o* o &(e Mu*+%+,a Cou*%+ o Ta*aua* +* e*a%&+*4 Or/+*a*%e No. !" +s &(us %ear' +& 0as +*&e*/e/ as a ,a+* subs&+&u&e or &(e ,r+or Or/+*a*%e No. !3# a*/ o,era&es as a re,ea o &(e a&&er# eve* 0+&(ou& 0or/s &o &(a& ee%&. Moreover# &(e )u*+%+,a+& )e*&+o*e/ +* +&s e&&er &(a& +& 0as o* see+*4 &o e*or%e Or/+*a*%e No. !"# ser+es o 1$6!. JAs &o &(e re)a+*+*4 Or/+*a*%e No. !" +),oses a ,er%e*&a4e or a s,e%+% &a= U*/oub&e/# &(e &a+*4 au&(or+& %o*erre/ o* o%a 4over*)e*&s u*/er Se%&+o* !# Re,ub+% A%& No. !!6<# +s broa/ e*ou4( as &o e&e*/ &o a)os& 2ever&(+*4# a%%e,&+*4 &(ose 0(+%( are )e*&+o*e/ &(ere+*.2 As o*4 as &(e &a ev+e/ u*/er &(e au&(or+& o a %+& or )u*+%+,a or/+*a*%e +s *o& 0+&(+* &(e e%e,&+o*s a*/ +)+&a&+o*s +* &(e a0# &(e sa)e %o)es 0+&(+* &(e a)b+& o &(e 4e*era rue. T(e +)+&a&+o* a,,+es# ,ar&+%uar# &o &(e ,ro(+b+&+o* a4a+*s& )u*+%+,a+&+es a*/ )u*+%+,a /+s&r+%&s &o +),ose 2a* ,er%e*&a4e &a or o&(er &aes +* a* or) based thereon *or +),ose &aes o* ar&+%es sube%& &o speci0c tax e%e,& 4aso+*e# u*/er &(e ,rov+s+o*s o &(e Na&+o*a I*&er*a Reve*ue Co/e.2 For ,ur,oses o &(+s ,ar&+%uar +)+&a&+o*# a )u*+%+,a or/+*a*%e 0(+%( ,res%r+bes a se& ra&+o be&0ee* &(e a)ou*& o &(e &a a*/ &(e vou)e o sae o &(e &a,aer +),oses a saes &a a*/ +s *u a*/ vo+/ or be+*4 ou&s+/e &(e ,o0er o &(e )u*+%+,a+& &o e*a%&.
The imposition of "a tax of one centavo (P.! on each gallon (!#$ %uid ounces& '.. of volume capacity" on all soft drin)s produced or manufactured under *rdinance +o. #, does not parta)e of the nature of a percentage tax on sales& or other taxes in any form based thereon. The tax is levied on the produce (whether sold or not and not on the sales. The volume capacity of the taxpayer-s production of soft drin)s is considered solely for purposes of determining the tax rate on the products& but there is not set ratio between the volume of sales and the amount of the tax . +or can the tax levied on softdrin)s be treated as a specic tax . pecic taxes are those imposed on specied articles # su%( as /+s&+e/ s,+r+&s# 0+*es# er)e*&e/ +uors# ,ro/u%&s o &oba%%o o&(er &(a* %+4ars a*/ %+4are&&es# )a&%(es re%ra%ers# )a*ua%&ure/ o+s a*/ o&(er ues# %oa# bu*er ue o+# /+ese ue o+# %+*e)a&o4ra,(+% )s# ,a+*4 %ar/s# sa%%(ar+*e# o,+u) a*/ o&(er (ab+&-or)+*4 /ru4s. oft drin) is not one of those specied .K
3. T(e &a o o*e @P.1 o* ea%( 4ao* @1! Hu+/ ou*%es# U.S. o vou)e %a,a%+& o* a so&/r+*s# ,ro/u%e/ or )a*ua%&ure/# or a* eu+vae*& o 1- %e*&avos ,er %ase +s *o& u*us& a*/ u*a+r. Mu*+%+,a %or,ora&+o*s are ao0e/ )u%( /+s%re&+o* +* /e&er)+*+*4 &(e ra&es o +),osabe &aes. T(+s +s +* +*e 0+&( &(e %o*s&+&u&+o*a ,o+% o a%%or/+*4 &(e 0+/es& ,oss+be au&o*o) &o o%a 4over*)e*&s +* )a&&ers o o%a &aa&+o*. U*ess &(e a)ou*& +s so e%ess+ve as &o be ,ro(+b+&+ve# %our&s 0+ 4o so0 +* 0r+&+*4 o a* or/+*a*%e as u*reaso*abe.
