Tolentino vs Secretary of Finance

The contention that he constitujtional design is to limit the senates power

in respect of revenue bills in order to comensate for the grant to the senate
of the treaty- ratifying power and therby equalize its powers and those of
the House overlooks the fact that the powrs beinf compared are diffirnt.
We are dealing here with the legislative power which under the conditttuin
is vetsed nt in any particular chamber but in th congress of the philppines,
consisting of a snate and a house of representatives. the exercise of the
trey ratifying power is not the exercise of legislative power =. It is the
exercise of a check on the executive power. There is, therefore, no
justification for comparing the legislative powers of the House and of the
senate on the basis of the possession of such nonlegislative power by the
senate. The possession of a similar power by the U.S senate hs never been
thought of as giving it more legislative powers than the House of
Representatives.
What is contends is that by withdrawing the exemption previously granted
to print media transaction involving printing, publication, importation or
sale of newspapers , Republic Act. nO. 7716 has singled out the press for
discriminatory treatment and that within the class of mass media the law
discriminates against print media by giving broadcast media favored
treatment. We have carefully examined this argument, but we are unable
to find a differential treatment of the press by the law, much less any
censorial motivation for its enactment. If the press is now required to pay a
value-addeed tax on its transactions, it is not because it is being singed out,
much less targeted, for special treatment but only because of the removal
of the exemption p[previously granted to it by law. The withdrawal of
exemption is all that is involved in these cases. Other transactions, likewise
previously granted exemption, have been delisted as part of the scheme to
expand the base and the scope of the VAT system. The law would perhaps
be open to the charge of discrimantory treatment if the only priviledge
withdrawn had beem that granted to the press. But tha is not the case.
 Nor is impermissible motive shown by the fact that print media and
broadcast media are treated diffidently. The press is taxed on its
transactions involving printing and publication which are different from the
transactions of broadcast media. There is thus a reasonable basis for the
classification

What has been said above also disposes of the allegations of the PBS that
the removal of the exemption of printing, publication or importation of
books and religious articles, as well as their printing and publication,
likewise violated freedom of thought and of conscience. For as the U.S
Supreme court unanimously held in Jimmy Swaggart Ministries vs. Board of
Equalization, the Free exercise of Religion clause does not prohibit imposing
a generally applicable sales and use tax on the sale of religious materials by
a religious organization

In this case , the fee in 107, although a fixed amount (1,000) is not imposed
from the exercise of a privilege but only for the purpose of defraying part
of the cost of registration. The registration requirement Is a central feature
of the VAT system. It is designed to provide a record of tax credits because
any person who is subject to the the payment of the VAT pays in an input
tax, even as he collects an output tax on sales made or services rendered.
The registration fee is thus a mere administrative fee, one not imposed on
the exercise of a privilege, much less of a constitional right

Only slightly less abstract but nonetheless hypothetical is the contention of

CREBA that the imposition of the VAT on the sales and leases of real estate
by virtue of contracts entered into prior to the effectivity of the law would
violate the constitutiona provision that No law mparing the obligation of
contracts shall be passed. It is enough to sayd that the parties to a
ctontract cannot, through the exercise of prophetic discernment, fetter
the exercise of the taxing power of the state. For not only are existing laws
read nto contracts as a basic postulate of the legal order. The policy of
 protecting contracts against impairment presupposes the maintenance of a
government which retains adequate authority to secure the peace and
order of society.

In truth, the contract clause has never been thought as limitation on the
exercise of the states power of taxation save only where a tax exemption
has been granted for the valid consideration. Such is not the Case of PAL in
GR NO. 115852 and we do not understand it to make his claim. Rather, it
position, as discussed above, the removal of its tax exemption cannot be
made a general, but only by a specific law.

ABAKADA GURO PARTY LIST VS. ERMITA

The equal protection clause under the consititution means tht no person or
class of persons shall be dprived of the same protection of laws which is
mejoyed by other persons or other classess in the same place and in like
circumstances. The power of the state to make reasonable and natural
classification for purposes of taxation has long been established. Whether it
relates to the subject of taxation , the kind of property, the rates to be
levied, or the amounts to be raised, the methods of assessment , valuation
and collection, the states power is entitled to presumption of validity. As a
rule, the judiciary will not interfere with such power absent a clear showing
of unreasonableness, discrimination or arbitrariness.
Unifomity in taxato means that all taxable articles or kinds of property of
the same class shall be taxed at the same rate. Diffient articles may be
taxed at diffirent amunts provided that the rate is uniform on the same
class everywhere with all people at all times. IN this case, the tax law is
uniform as it provides a standard rate of 0%or 10% (12%) on all goods ad
services. It must be stressed that the rule of uniform taxation does not
 deprive Congress of the power to classify subjects of taxation, and only
demands uniformity within the particular class.
Petitner contend that the limitation on the creditable input tax is anyting
but regressive. It is the smaller business with higher input tax-output ration
that will suffer the consequences. Progressive taxation is built on the
principle of the taxpayers ability to pay. This principle was also lifted from
Adams Smith canons of Taxation, and it sates: The subjets of every state
ought to contribute towards the support of the government, as nearly s
possible, in proportion to their respective abilities: that is, in propoertion to
the revenue whch theyrespectively enjoy under the protection of the state.
Taxation is progressive when its rat goes up depending on the sources of
the person affected.