BENGZON V.

DRILON

FACTS: The veto of the President had the effect of reversing the Supreme Court’s decision. In fact, it was
repealing a law. That cannot be done by the item veto power of the President. Remember this case? The
automatic increase in the pension of the justices which the automatic increase was removed by law. But
after that issue was decided by court, that law was found to be ineffectual because it was not published.
Therefore, the automatic increase was restored. Nevertheless, the President vetoed the provisions that
implemented the automatic increase.

RULING: The Court said that by doing that, you 1) reverse our decision; and 2) you repealed an existing
law which allows for automatic increases. That cannot be done by the President by the exercise of his veto
powers.

GARCIA V. EXECUTIVE SECRETARY

FACTS: The President issued Executive Order No. 438 imposing in addition to any other duties, taxes and
charges imposed by law on all articles imported into the Philippines, he increased it by five percent (5%) ad
valorem. Gi-increasan niya ang duties for all imported items by 5% of its value. Later on, it was increased
to 9% ad valorem.

The president issued Executive Order No. 475 which reduced the nine percent (9%) to five percent (5%) ad
valorem, except in the cases of crude oil and other oil products. In other words, the nine percent (9%) ad
valorem increase remained for crude oil and other oil products.

This was questioned by the importers of oil because it is burdensome for them. This is a mode of
generating revenue. Since this involves revenue-generation, this is not within your power to do but by the
power of congress by way of taxes. They are claiming that this is legislative power exercised by the
president.

ISSUE: Are these executive orders valid? Do they contravene the tariffs and customs code which initially
granted the president the power to impose tariffs?

RULING: The Court said that YES, they are valid.

Is the president limited to act under the provisions of the tariffs and customs code only to protect local
industries for the sake of national economy and security? No.
- It is not the sole prerogative given to the president under this TCC. There is nothing in the
language of the law that suggest such a sharp and absolute limitation of authority.

The issuance by the President may be construed as a regulatory measure. While it has an incident of
revenue-generating effect, if the primary purpose is to regulate, that can be done by the executive
department. We’ve learned that before while we were discussing regulating taxation. Taxation can only
be done by the legislative but if there is an issuance which generates revenue but the main purpose of
which is regulation then that can be done by the executive. But, if there is an issuance and the main
purpose is taxation, that can only be done by legislative department.