Bureau of Local Government Finance Opinion

May 26, 1993 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Lovell R. Bautista Partner Fernandez, Santos & Lopez Certified Public Accountants 21st Floor, Metrobank Plaza Sen. Gil J. Puyat Avenue Makati, Metro Manila S i r : This refers to your attached letter dated May 8, 1993, with attachments, requesting in behalf of your client, the Pepsi Cola Products Phils., Inc. (PCPPI). For a ruling on the constitutionally or legality of the provisions of Article (e) (1), (3) and (4) of the Implementing Rules and Regulations (IIR), implementing Section 169 of the Local Government code of 1991 (RA 7160). cd i In this connection, it is informed that upon the effectivity of the Local Government Code of 1991 on January 1, 1992, this Department no longer reviews the tax ordinances or provinces and cities. Although the Department extends technical assistance to local government units in the interpretation or clarification of the conflicting provisions of the Code pertaining to Local Taxation, however, it cannot render a ruling on the legality or constitutionality of a tax ordinance enacted by a local government unit, in the instant case the Tax Ordinance of Butuan City, which is exclusively under the jurisdiction of the Secretary of Justice or the court of competent jurisdiction, as the case may be, pursuant to Section 187 of the Code. Sec. 187 of the Code reads: "Sec. 187. Procedures for Approval and Effectivity of Tax Ordinances and Revenue Measures; Mandatory Public Hearings . The procedure for approval of local tax accordance with the provisions of this Code: Provided , That public hearings shall be conducted for the purpose prior to the enactment thereof: Provided , further , That any question on the constitutionality or legality of tax ordinance or revenue measures may be raised on appeal within thirty (30) days from the effectivity thereof to the Secretary of Justice who shall render a decision within sixty (60) days from the date of receipt of the appeal: Provided , however , That such appeal shall not have the effect of suspending the effectivity of the ordinance and the accrual and payment of the tax, fee, or charge levied therein: Provided , finally , That within thirty (30) days after receipt of the decision or the lapse of the sixty-day period without the Secretary of Justice acting upon the appeal, the aggrieved party may file appropriate proceedings with a court of competent jurisdiction." (Underlining supplied) Although it appeared from your letter that you are requesting a ruling from this Department regarding the legality or constitutionality of the provisions involved under the subject IRR, however, in effect, you are actually questioning the legality or constitutionality of the Tax Ordinance of Butuan City regarding the imposition of the Community Tax, such being the case, therefore, the matter pertains to the jurisdiction of the Secretary of Justice or the court of competent jurisdiction, as the case may be pursuant to Section 187 of the Code. In view hereof, this Department regrets its inability to act favorably on your request. Very truly yours, By Authority of the Secretary: LORINDA M. CARLOS Executive Director Bureau of Local Government Finance