Title
Pacific Commercial Co. vs. Romualdez
Case
G.R. No. 26124
Decision Date
Feb 14, 1927
A company challenged Manila's Ordinance No. 1264, which imposed fees on frozen meat imports, arguing it was an unauthorized tax. The Supreme Court ruled the ordinance invalid, as it exceeded the Municipal Board's regulatory authority and served as a revenue measure.
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Case Summary (G.R. No. 26124)

Distinction Between Power to License and Power to Tax

  • The primary distinction lies in the nature of the powers: the power to license is a police measure aimed at regulation, while the power to tax is a revenue measure.
  • The terms "license" and "regulate" in a municipal charter can authorize licenses for revenue-raising purposes only if the rest of the charter does not contradict this intent.

Legislative Powers of the Municipal Board

  • The provisions of the Manila Charter indicate that the power to tax was explicitly granted where intended and withheld where not intended.
  • It cannot be presumed that the authority to tax exists if it is not clearly stated in the charter.

Regulatory Power of the City of Manila

  • The power granted to the City of Manila to regulate and fix license fees for cold stores is purely regulatory and intended for police purposes.
  • This regulatory power cannot be utilized for revenue generation unless such revenue is incidental to the regulation.

Examination of Ordinance No. 1264

  • Ordinance No. 1264 was primarily aimed at raising revenue rather than regulation, as evidenced by its origins in a report highlighting lost revenue from unregulated frozen meat imports.
  • The ordinance is deemed invalid as it does not fall within the legislative authority granted to the City of Manila.

Background of the Case

  • The Pacific Commercial Company, engaged in the importation of frozen provisions, challenged the validity of Ordinance No. 1264 after being demanded to pay fees under the ordinance.
  • The ordinance was enacted following a report from the city treasurer indicating significant revenue losses due to unregulated frozen meat imports.

Legal Proceedings and Findings

  • The trial court ruled Ordinance No. 1264 null and void based on three grounds: lack of adequate publication, exceeding legislative powers, and the nature of the permit fees as taxes on imports.
  • The appeal focused on whether the Municipal Board acted within its legal authority in enacting the ordinance.

Legislative Intent and Authority

  • The Manila Charter grants the Municipal Board the power to regulate and fix license fees but does not explicitly grant th...continue reading

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