Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 145)
The Secretary of Finance has the authority to suspend the effectivity of any local tax ordinance within 120 days after receipt of a copy of the ordinance if the tax or fee imposed is deemed unjust, excessive, oppressive, confiscatory, or contrary to declared national economic policy.
A local tax ordinance goes into effect on the fifteenth day after its passage unless the ordinance itself provides otherwise.
Certified true copies of all city, municipal, and municipal district tax ordinances must be furnished to the Secretary of Finance within ten days after passage by the respective local council.
The effectivity of the ordinance is suspended either in part or whole for 30 days, during which the local legislative body may either modify the ordinance to address the objections or file an appeal with a court of competent jurisdiction. Failure to do so will result in the ordinance or suspended parts being considered revoked.
No. The local legislative body may not reimpose the same tax or fee until the grounds for the suspension have ceased to exist.
A formal protest may be filed within 120 days after the passage of the tax ordinance, and the Secretary of Finance has 60 days after receipt of the protest to decide on the matter.
Within 30 days after receipt of the decision, the local legislative body may either modify the ordinance in accordance with the Secretary's decision or appeal to a court. Otherwise, the decision becomes final.
Any tax or fee paid pursuant to a suspended ordinance or during an appeal is considered paid under protest until the final resolution of the issues raised.
Department of Finance Circular No. 11-73, issued on March 15, 1973, prescribes the rules and regulations implementing the provisions of Presidential Decree No. 145.
If there is no action by the Secretary within 120 days, the tax ordinance shall remain in force.