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Delegation of LGU
On 1 January 1977, the Philippine Amusements and Gaming
Corporation (PAGCOR) was created by virtue of PC 1067-A and
granted a franchise under PD 1067-B to establish, operate, and
maintain gambling casinos on land or water within the territorial
jurisdiction of the Philippines.
On 11 July 1983, PAGCOR was created under PD 1869 to enable the
Government to regulate and centralize all games of chance
authorized by existing franchise or permitted by law.
Petitioners filed this petition seeking to annul the PAGCOR Charter
(PD 1869) because it is allegedly:
Exemption clause:
Section 13 par. (2) of P.D. 1869 exempts PAGCOR, as the franchise
holder from paying any tax of any kind or form, income or
otherwise, as well as fees, charges or levies of whatever nature,
whether National or Local.
ISSUSE: Does the Local Government of Manila have the power to impose
taxes on PAGCOR? NO
HELD:
The power of local government to impose taxes and fees is always
subject to limitations which Congress may provide by law.
Municipal corporations have no inherent power to tax and their
power to tax must always yield to a legislative act for they are mere
creatures of Congress wherein the latter has the power to create and
abolish municipal corporation due to its general powers.
If Congress could grant a power to tax to City of Manila it could also
provide exemptions and even take back such power
Note: