Case Digest (G.R. No. 81311)
Facts:
In four consolidated petitions filed before the Supreme Court En Banc on June 30, 1988 (G.R. Nos. 81311, 81820, 81921, and 82152), Kapatiran ng mga Naglilingkod sa Pamahalaan ng Pilipinas, Inc., Herminigildo C. Dumlao, Geronimo Q. Quadra, Mario C. Villanueva; Kilusang Mayo Uno Labor Center (KMU) and affiliated federations; Integrated Customs Brokers Association of the Philippines and Jesus B. Banal; and Ricardo C. Valmonte challenged Executive Order No. 273, issued by President Corazon C. Aquino on July 25, 1987 and effective January 1, 1988. EO 273 amended sections of the National Internal Revenue Code by adopting a value‐added tax (VAT) at 0% or 10% on annual gross sales exceeding ₱200,000 and repealed multiple privilege taxes. Petitioners alleged that the President lacked authority to legislate, that EO 273 was an oppressive, discriminatory, and regressive tax violating due process and equal protection under the 1987 Constitution, and that specific provisions unduly discriminCase Digest (G.R. No. 81311)
Facts:
- Petitioners and respondents
- Four consolidated petitions:
- Kapatiran ng Mga Naglilingkod sa Pamahalaan (G.R. No. 81311)
- Kilusang Mayo Uno Labor Center and affiliates (G.R. No. 81820)
- Integrated Customs Brokers Association and Jesus B. Banal (G.R. No. 81921)
- Ricardo C. Valmonte (G.R. No. 82152)
- Respondents: Commissioner of Internal Revenue, Executive Secretary, Secretary of Finance, Secretary of Budget
- Solicitor General’s motion to dismiss for lack of justiciable controversy, standing, and authority to decide
- Executive Order No. 273 and Value-Added Tax (VAT)
- EO 273 issued 25 July 1987, effective 1 January 1988, amending National Internal Revenue Code to adopt VAT
- VAT imposes 0% or 10% tax on gross selling price or gross receipts of sellers with annual sales over ₱200,000
- Aims of EO 273: rationalize tax system, simplify administration, promote equity, support economic recovery
- Pre-existing sales tax system:
- Single-stage value-added tax under cost-subtraction method on manufacturers and importers
- PD 1991 (3%) and PD 2006 (1.5%) on subsequent sales; EO 273 raised rate to 10% on all stages
Issues:
- Procedural and jurisdictional questions
- Whether there is an appropriate justiciable case and controversy
- Whether petitioners have personal and substantial interest (standing)
- Authority and validity of EO 273
- Whether President had power to legislate EO 273 under Provisional and 1987 Constitutions
- Whether EO 273 was issued in grave abuse of discretion (lack or excess of jurisdiction)
- Constitutional challenges to the VAT
- Alleged oppression, discrimination, regressivity violating due process and equal protection
- Alleged breach of uniformity and equity requirement (Art. VI, Sec. 28(1), 1987 Constitution)
- Alleged discrimination against customs brokers under exemption section (Sec. 103(r))
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)