Association of Custom Brokers vs.

Manila

GR L-4376, 22 May 1953

En Banc, Bautista-Angelo (J): 3 concur, 4 concur in result

FACTS:

The Association of Customs Brokers, which is composed of all brokers and public service
operators of motor vehicles in the City of Manila, challenges the validity of Ordinance 3379 on the
grounds (1) that while it levies a so-called property tax, it is in reality a license tax which is beyond the
power of the Manila Municipal Board; (2) that said ordinance offends against the rule on uniformity of
taxes; and (3) that it constitutes double taxation.

ISSUE: Whether the ordinance infringes on the rule on uniformity of taxes as ordained by the
Constitution.

HELD:

While the tax in the Ordinance refers to property tax and it is fixed ad valorem, it is merely
levied on all motor vehicles operating within Manila with the main purpose of raising funds to be
expended exclusively for the repair, maintenance and improvement of the streets and bridges in said
city. The ordinance imposes a license fee although under the cloak of an ad valorem tax to circumvent
the prohibition in the Motor Vehicle Law.

Further, it does not distinguish between a motor vehicle for hire and one which is purely for
private use. Neither does it distinguish between a motor vehicle registered in Manila and one registered
in another place but occasionally comes to Manila and uses its streets and public highways. The
distinction is necessary if his ordinance intends to burden with tax only those registered in Manila as
may be inferred from the word “operating” used therein. There is an inequality in the ordinance which
renders it offensive to the Constitution.