Constitutional

Limitations
 Due process of law
• There must be a valid law and the measure should not be unconscionable
and unjust as to amount to confiscation of property.
• Due process requires 2 things:
1. notice
2. hearing
 Equal protection of laws
• All persons subject to legislation shall be treated alike under similar
circumstances and conditions both in the privileges conferred, and
liabilities imposed.
Rule of uniformity and equity in taxation
“The rule of taxation and equity shall be uniform and equitable.” The concept of
uniformity in taxation implies that all taxable articles or properties of the same
class shall be taxed at the same rate. For classification to be valid, the following
must concur:
• It must be based on substantial distinction
• It must apply both to present and future conditions
• It must be germane to the purposes of the law
• It must be apply equally to all members of the same class
 Prohibition against imprisonment for non-
payment of poll tax
No person shall be imprisoned for debt or non-payment of poll tax. The non-
imprisonment rule applies to non-payment of poll tax which is punishable
only by a surcharge, but not to other violations like falsification of
community tax certificate and non-payment of other taxes. Poll tax is a tax
of fixed amount imposed on residents within a specific territory regardless
of citizenship, business or profession. Example is community tax.
 Prohibition against impairment of obligation
of contracts
No law impairing the obligation of contracts shall be passed. The obligation
of a contract is impaired when its terms or conditions are changed by law or
by a party without the consent of the other, thereby weakening the position
or rights of the latter.
 Prohibition against infringement of religious
freedom
• No law shall be made respecting an establishment of religion, or
prohibiting the free exercise thereof.
 Prohibition against appropriation of proceeds of
taxation for the use benefits, or support of any church

• No public money or property shall be appropriated, applied, paid, or

employed directly or indirectly, for the use, benefit, or support of any
church, denomination, sectarian institution or system of religion, or of any
priest, preacher, minister or other religious teacher, or dignitary as such
except when such priest, preacher, minister or dignitary is assigned to the
armed forces, or to any penal institution, or government orphanage or
leprosarium.
 Prohibition against taxation of religious,
charitable and educational entities
• Charitable institutions, churches and parsonages or convents appurtenant
thereto, mosques, non-profit cemeteries, and all lands, buildings and
improvements, actually, directly, and exclusively used for religious,
charitable, or educational purposes shall be exempt from taxation.
Prohibition against taxation of non-stock, non-
profit educational institutions
• All revenues and assets of non-stock, non-profit educational institutions
for educational purposes shall be exempt from taxes and duties.
 Infringement of press freedom

• This limitation does not mean that the press is exempt from taxation.
Taxation constitutes an infringement of press freedom when It operates as
a prior restraint to the exercise of this constitutional right.
 Grant of franchise

• Tax exemptions included in the grant of a franchise may be revoked by

another law as it is specifically provided in the Constitution that the grant
of any franchise is always subject to amendment, alteration, or repeal by
the Congress when the common good so requires.
 Others
• No law granting any tax exemption (i.e., amnesties, condonations and refunds) shall
be passed without the concurrence of a majority of all Members of Congress (voting
separately).
• The President shall have the power to veto any particular item or items in an
appropriation, revenue, or tariff bill, but the veto shall not affect the item or items to
which he does not object.
• Congress cannot take away from the Supreme Court the power given to it by the
Constitution as the final arbiter of tax cases.
• Revenue bills shall originated exclusively from the House of representatives