Imposition of Both Liquor Tax and Beer Tax

May 10, 1990 BIR RULING NO. 072-90 140 000-00 072-90 Gentlemen : This refers to your letter dated January 16, 1990 inquiring as to why the government is imposing a liquor tax payable to this Bureau and a beer tax payable to City Hall which, in effect, results in double taxation. cdta In reply, please be informed that the imposition by this Bureau of the liquor tax (presumably ad valorem tax) is in accordance with Section 140 of the Tax Code, as amended by E.O. No. 273; while the authority of provincial, city or municipal governments to levy taxes on beer is expressly provided in Article 2, Section 19 of P.D. No. 231 otherwise known as the Local Tax Code. You cannot invoke double taxation in this case because the impositions of said taxes are made by two different taxing authorities one by the National Government and the other by the City Government. It has been held that double taxation may not be invoked where a tax is imposed by the national government and another by the city for the exercise of the same occupation or business as the tax is not imposed by the same public authority. ( Punzalan vs. Municipality Board of Manila, 95 Phil. 46; Pepsi Cola Bottling Co. vs. Mun. of Tanauan, L-31156, Feb. 27, 1976; City of Baguio vs. De Leon, L-24756, Oct. 31, 1968) Furthermore, even assuming that double taxation would thereby materialize, there is no prohibition against the same in this jurisdiction. (CIR vs. Hawaiian Phil. Co., 11 SCRA 256; Manufacturer's Life Ins. Co. vs. Meer, 89 Phil. 357; City of Manila vs. Inter-Islands Gas Services Inc., 99 Phil. 847) Very truly yours, (SGD.) JOSE U. ONG Commissioner