Exemption from Fixed Tax of a University Operating Broadcasting Station

October 19, 1970 BIR RULING NO. 045-70 University operating broadcasting station exempt . Returned to the Regional Director, Revenue Region No. 15, Iloilo City, the within letter of Fr. Nicanor Lana, OSA, Rector of the University of San Agustin, Iloilo City, with the following comment: While it is true that Section 182(A) (3) (gg) of the Tax Code, as amended by Republic Act No. 6110, otherwise known as the Omnibus Tax Law, of P500.00, yet it should be noted that RA No. 6110 is a general law. Republic Act No. 2889, exempting radio broadcasting and television stations from the franchise and privilege taxes is a special law. It is well-settled rule in statutory construction and interpretation that a special law prevails over a general one. Moreover, Section 7 of Republic Act No. 4353 granting the University of San Agustin a franchise to establish, maintain and operate a radio broadcasting station in Iloilo City, reads, as follows: "Section 7. The grantee shall be liable to pay the same taxes, unless exempted therefrom, on its real estate, buildings, and personal property, exclusive of the franchise, as other persons or corporations are now or hereafter may be required by law to pay." It is believed that the clause "shall be liable to pay the same taxes" refers to real estate and personal property taxes and does not include franchise and privilege taxes. This interpretation is arrived at after a scrutiny of the sentence construction of the section involved and especially considering the presence of the phrase "exclusive of the franchise." In view of the foregoing, the University of San Agustin DYSA Radio Station is exempt from the fixed tax of P500.00 imposed under Section 182(A) (3) (gg) of the Tax Code, as amended by Republic Act No. 6110.