DOJ Opinion No. 014, s. 1999

DOJ OPINION NO. 014 , s. 1999 February 3, 1999 The Administrator National Electrification Administration 1050 CDCF Building, Quezon Avenue Quezon City Sir : This refers to the request of that Office for clarificatory opinion concerning Article 283 of the Rules and Regulations Implementing the Local Government Code of 1991 (R.A. No. 7160) vis--vis this Department's Opinion No. 101, s. 1996, in relation to electric cooperatives (ECs) which opt not to register, or fail to register, under R.A. No. 6938, the "Cooperative Code of the Philippines". Specifically, question is posed whether such cooperatives continue to enjoy their tax exemption privileges under Section 39 of P.D. No. 269. Article 283 of the Rules and Regulations Implementing the Local Government Code of 1991 (IRR) pertinently provides, to wit: "ARTICLE 283. Withdrawal of Tax Exemption Privileges or Incentives . Unless otherwise provided in this Rule, beginning January 1, 1992, all local tax exemption privileges or incentives granted to and presently enjoyed by any person, whether natural or juridical, including GOCCs, are considered withdrawn, except the following: cdpr xxx xxx xxx (b) Cooperatives duly registered under RA 6938 , otherwise known as the Cooperative Code of the Philippines ; xxx xxx xxx." (Emphasis supplied). The aforequoted provision of the IRR implements Section 193 of the said Local Government Code which provides: "SECTION 193. Withdrawal of Tax Exemption Privileges . Unless otherwise provided in this Code, tax exemptions or incentives granted to, or presently enjoyed by all persons, whether natural or juridical, including government-owned or controlled corporations, except local water districts, cooperatives duly registered under R . A . No . 6938 , non-stock and non-profit hospitals and educational institutions, are hereby withdrawn upon the effectivity of this Code". (Emphasis supplied.) It is your view that R.A. No. 7160 (the Local Government Code) could not have repealed Section 39 of P.D. No. 269, as amended, considering that R.A. No. 7160 is a general law while P.D. No. 269 is a special law and that the repealing clause of R.A. No. 7160 does not expressly repeal the subject provision of P.D. No. 269; and that since implied repeals are not favored, the special law must be considered as an exception to the general law, the rule being to give possible effect to all enactments of the legislature. You cite Supreme Court rulings in support of said arguments. Based thereon, you assert that "NEA-registered electric cooperatives which fail, or opt not, to register under R.A. No. 6938 are still covered by P.D. No. 269, and being so, are still entitled to all the benefits and incentives granted under P.D. No. 269, as amended, and as restored by FIRB Res. No. 24-87". llcd We agree with the view that a general law, such as R.A. No. 7160, cannot repeal a special law, like P.D. No. 269, unless there is in the general law a provision expressly repealing the special law. This is a basic rule of statutory construction. However, the provisions of Section 193 of R.A. No. 7160, as implemented by Article 283 of the IRR, which deal with the specific subject "withdrawal of tax exemptions", may be deemed special provisions in relation to Section 39 of P.D. No. 269 which grants tax exemptions to electric cooperatives. Thus, insofar as Section 193, as implemented by Article 283, has clearly withdrawn the exemptions from local taxes granted under various laws to "all persons, whether natural or juridical, including government-owned or controlled corporations" except those entities mentioned therein, among them, cooperatives registered under R.A. No. 6938, said Section 193 will be deemed to have modified Section 39 of P.D. No. 269 such that ECs that remain registered under said Decree will no longer be exempt from local taxes . Section 193 of R.A. No. 7160, as implemented by Article 283 of the IRR, is a later special provision which should prevail over the general tax exemption provisions of Section 39 of P.D. No. 269. Please be guided accordingly. Very truly yours, (SGD.) JUSTICE SERAFIN R. CUEVAS Secretary