1 TAX - GRUBA

Petron Corp. v. Mayor Tiangco and Treasurer Enriquez of contrast, the later reference to "taxes, fees and charges" pertains only to one class
the Municipality of Navotas of articles of the many subjects of excise taxes, specifically, "petroleum products".
While local government units are authorized to burden all such other class of goods
with "taxes, fees and charges," excepting excise taxes, a specific prohibition is
Facts: imposed barring the levying of any other type of taxes with respect to petroleum
Petron maintains a depot or bulk plant in Navotas Fishport Complex. products.
Through the said depot, it sells diesel fuels to the vessels used in
commercial fishing in and around Manila Bay.
Later, Petron received a letter from the office of Mayor Tiangco assessing it
for business taxes in the amouont of 6.2M covering 1997-2001 pursuant to
the Navotas Revenue Code.
A protest was filed by Petron arguing that under the IRR of the NIRC, it is
exempt from local business tax. Also, an opinion was rendered by the
Bureau of Local Government Finance providing for that sales of petroleum
fuels are NOT subject to local taxation. Letter protest was denied and a
final demand to pay was sent to Petron.
Petron filed a complaint for cancellation of assessment with TRO before the
RTC. RTC dismissed the complaint.

Issue: WON the municipality of Navotas may impose a business tax on Petron? NO!

Ratio:

Section 133(h) of the LGC reads as follows:

Sec. 133. Common Limitations on the Taxing Powers of Local

Government Units. - Unless otherwise provided herein, the exercise
of the taxing powers of provinces, cities, municipalities, and
Barangays shall not extend to the levy of the following:

xxx

(h) Excise taxes on articles enumerated under the National Internal

Revenue Code, as amended, and taxes, fees or charges on petroleum
products;

The language of Section 133(h) makes plain that the prohibition with respect to
petroleum products extends not only to excise taxes thereon, but all "taxes, fees
and charges." The earlier reference in paragraph (h) to excise taxes comprehends a
wider range of subjects of taxation: all articles already covered by excise taxation
under the NIRC, such as alcohol products, tobacco products, mineral products,
automobiles, and such non-essential goods as jewelry, goods made of precious
metals, perfumes, and yachts and other vessels intended for pleasure or sports. In

ALBERTO BATTAC CO DELA ROSA GUERRERO REVOTE SALVADOR TAYAG