DOJ Opinion No. 032, s. 1997

DOJ OPINION NO. 032 , s. 1997 2nd Indorsement May 13, 1997 Respectfully returned to the Chief Presidential Legal Counsel, Office of the President, Malacaang, Manila, his within Indorsement (OCPLC12-0138-96) dated December 24. 1996, referring to this Department, for comment and/or opinion, the query raised by Atty. Danilo V. Roleda, councilor, 4th District, Manila, on the extent of the regulatory powers of the city government of Manila over Club Intramuros. Specifically, the query raised is ". . . (W)hether or not the Club Intramuros which operates a golf course located at Intramuros, City of Manila, under the Philippine Tourism Authority (PTA) is subject to the regulatory powers such as the issuance of business/Mayor's permits or inspections by the City of Manila." Corollary thereto, the Manila City councilor wants to be "advised on the (Club's) current status of ownership and the legal basis of the PTA to operate the same inspite of the fact that the subject area has historically been under the control and administration of the City of Manila". The request, it appears, is made in connection with a resolution filed by the said councilor requiring/ordering, among other things, "Club Intramuros Golf Course to cease and desist from operating the said golf course until the necessary permit/resolution from the City Council is secured". Pertinent to the resolution of the main query are the following provisions of the Local Government Code of 1991 (R.A No. 7160): "SECTION 133. Common Limitations on the Taxing Powers of Local Government Units . Unless otherwise provided herein, the exercise of the taxing powers of provinces, cities , municipalities, and barangays shall not extend to the levy of the following: xxx xxx xxx (o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities , and local government units." "SECTION 131. . . . "(1) 'Fee' means a charge fixed by law or ordinance for the regulation or inspection of a business or activity ." (Emphasis supplied.) Section 133, abovequoted, prescribes the limitations upon the taxing powers of local government units (LGUs), one of which is that specified in paragraph (o) which inhibits LGUs from imposing "[t]axes, fees or charges of any kind" on the National Government, including its agencies and instrumentalities, and even upon other LGUs. "Fee", as defined in Section 131 (1), supra , means any charge imposed by the LGU in the exercise of its regulatory powers. Based thereon, assuming that the PTA in fact operates Club Intramuros, the City of Manila, a local government unit, cannot impose its regulatory powers upon the PTA, i.e. require PTA to get a business/mayor's permit for Club Intramuros, and to pay the corresponding fee therefor, since PTA has been established as the implementing arm of the Department of Tourism, a national government agency, "to implement policies and programs of the Department pertaining to the development, promotion and supervision of tourism projects in the Philippines" and to "undertake for its own account, or in joint venture with the private sector, the operation and maintenance of essential tourist facilities which private enterprise alone is not prepared or willing to undertake" (Sec. 4[a] and [d], P.D. No 564, as amended). Anent the corollary issues raised regarding the ownership of Club Intramuros and its operation by PTA, we are constrained to forbear ruling thereon for the reason that the same raise questions of fact. Pursuant to settled policy, this Department does not render opinion on matters involving questions of fact since the Secretary of Justice is empowered to rule only upon questions of law (id., Opns. No. 155, s. 1993; No. 192, s. 1982; No. 128, s. 1977). (SGD.) TEOFISTO T. GUINGONA, JR. Secretary