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Digest For 2008 Case - British American Tobacco V Camacho
Digest For 2008 Case - British American Tobacco V Camacho
WON: 1. The pertinent portions of RA 8240, as amended by RA 9334, discriminates against new cigarette brands and favors old cigarette brands? 2. The classification freeze provision unduly favors older brands over newer brands? Held: In applying the rational basis test, the Court found the questioned law Constitutional. A legislative classification that is reasonable does not offend the constitutional guaranty of the equal protection of the laws. The classification is considered valid and reasonable provided that: (1) it rests on substantial distinctions; (2) it is germane to the purpose of the law; (3) it applies, all things being equal, to both present and future conditions; and (4) it applies equally to all those belonging to the same class. classification freeze provision uniformly applies to all newly introduced brands in the market, Finding that the assailed law seems to derogate, to a limited extent, one of its avowed objectives (i.e. promoting fair competition among the players in the industry) would suggest that, by Congresss own standards, the current excise tax system on sin products is imperfect. But the Court cannot declare a statute unconstitutional merely because it can be improved or that it does not tend to achieve all of its stated objectives.