JERU V.

SAGAOINIT October 23, 2020

Taxation I

Can the Congress enact a law delegating the power to fix tariff rates to cabinet
secretary as an alter ego of the President?

Yes. Congress can enact a law delegating the power to fix tariff rates even to the
cabinet secretaries. As a general rule, legislative power cannot be delegated. However, this
rule admits of exceptions. In the case of Southern Cross Cement Corp v Philippine Cement
Manufacturers Corp., et. al, G.R. No. 158540, wherein one of the issue is whether or not the
DTI Secretary was barred from imposing a general safeguard measure which involve duties
on imported products, tariff rate quotas, or quantitative restrictions on the importation of a
product into the country, the court held that:

“The Court recognizes that the authority delegated to the

President under Section 28(2), Article VI may be exercised, in
accordance with legislative sanction, by the alter egos of the President,
such as department secretaries. Indeed, for purposes of the President’s
exercise of power to impose tariffs under Article VI, Section 28(2), it is
generally the Secretary of Finance who acts as alter ego of the
President. The SMA provides an exceptional instance wherein it is the
DTI or Agriculture Secretary who is tasked by Congress, in their
capacities as alter egos of the President, to impose such measures.
Certainly, the DTI Secretary has no inherent power, even as alter ego of
the President, to levy tariffs and imports.”

In this instance, it is worthy to note however that before the Legislature can
delegate the power to impose tax to the President and his alter egos, there must “[f]irst, be
a law delegating the legislative power. Second, there must be specified limits, a detail
which would be filled in by the law. And third, Congress is further empowered to impose
limitations and restrictions on this presidential authority. Without legislative authorization
through statute, the President has no power, authority or right to impose such safeguard
measures [tax rates] because taxation is inherently legislative, not executive. When
Congress tasks the President or his/her alter egos to impose safeguard measures under the
delineated conditions, the President or the alter egos may be properly deemed as agents of
Congress to perform an act that inherently belongs as a matter of right to the legislature.
(Southern Cross Cement Corp v Philippine Cement Manufacturers Corp., et. al, G.R. No.
158540, August 03, 2005).”

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