DOJ Opinion No. 144, s. 1985

DOJ OPINION NO. 144 , s. 1985 2nd Indorsement November 6, 1985 Respectfully returned to Minister Jesus S. Hipolito, Ministry of Public Works and Highways, Manila, hereby concurring in his view that the request of the Light Rail Transit Authority for exemption from payment of building permit fees for the construction of its terminals/stations at Manila, Pasay and Caloocan "is bereft of any legal basis", for the reason that the tax exemption provision in its charter (Ex. Or. No. 603) which read: "Any loan, credit, indebtedness contracted by the Authority and the payment of the principal, interest and other charges thereon, as well as the importation of machinery, equipment, materials, supplies, and services paid from the proceeds of any such loan, credit or indebtedness shall be exempt from all direct and indirect taxes, customs duties, fees, imposts, other charter and restrictions, including import restrictions, previously and presently imposed and to be imposed by the Republic of the Philippines, or any of its agencies and political subdivisions." (4th par., Sec. 7; Emphasis supplied) "The importation of equipment, machineries, spare parts, accessories, and other materials, including supplies and services, used directly in the operations of the Light Rail Transit System, no obtainable locally on favorable terms, out of any funds of the Authority including, as stated in Section 7 above, proceeds from foreign loans, credits or indebtedness, shall, likewise, be exempted from all direct and indirect taxes, customs duties, fees, imposts, tariff duties , compensating taxes, wharfage fees and other charges and restrictions, the provisions of existing laws to the contrary notwithstanding." (Sec. 8; Emphasis supplied) LexLib refer only to its borrowings and importations of equipment, spare parts and other materials. The above-quoted provisions specifically mention the transactions exempt from taxation and the language used is not broad enough to include other taxes, imposts, charges, fees and dues imposed by existing laws. If the broadest tax exemption were contemplated, the legislature could easily have so provided, as in the tax-exemption clause in R.A. 720 which exempts rural banks "from all taxes, charges and fees of whatsoever kind and nature" (Op. dated November 15, 1965), and that found in R.A. 358 which frees the National Power Corporation "from all taxes, duties, fees, imposts, charges, and restrictions of the Republic of the Philippines and its provinces, cities and municipalities." (Op. No. 106, s. 1954) It is settled than when the language of the law is clear and unequivocal, it should be taken to mean it exactly says (Martin vs. Macenciano, 19 Phil. 278) (SGD.) ESTELITO P. MENDOZA Minister of Justice