Mactan Cebu International Airport Authority v Marcos
GR No 120082, September 11, 1996
FACTS:
Petitioner was created by virtue of RA 6958. Section 1 thereof states that the authority shall be exempt from realty taxes imposed by the National Government or any of its political subdivisions, agencies and instrumentalities. However, the Treasurer of Cebu City demanded payment for realty taxes from petitioner. Petitioner filed a declaratory relief before the Regional Trial Court. The trial court dismissed the petitioner ruling that the Local Government Code withdrew the tax exemption granted to Government owned and controlled corporation.
ISSUE:
Whether the city of Cebu has the power to impose taxes on petitioner
RULING:
Yes. Taxation is the rule and exemption is the exception, the exemption may thus be withdrawn at the pleasure of the taxing authority. As to tax exemptions or incentives granted to or presently enjoyed by natural or juridical persons, including government- owned and controlled corporations, section 193 of the LGC prescribes the general rule, viz, they are withdrawn upon the effectivity of the LGC, except those granted to local water districts, cooperatives, duly registered under RA 6938, non stock and nonprofit hospitals and educational institutions and unless otherwise provided in the LGC.
FACTS:
Petitioner was created by virtue of RA 6958. Section 1 thereof states that the authority shall be exempt from realty taxes imposed by the National Government or any of its political subdivisions, agencies and instrumentalities. However, the Treasurer of Cebu City demanded payment for realty taxes from petitioner. Petitioner filed a declaratory relief before the Regional Trial Court. The trial court dismissed the petitioner ruling that the Local Government Code withdrew the tax exemption granted to Government owned and controlled corporation.
ISSUE:
Whether the city of Cebu has the power to impose taxes on petitioner
RULING:
Yes. Taxation is the rule and exemption is the exception, the exemption may thus be withdrawn at the pleasure of the taxing authority. As to tax exemptions or incentives granted to or presently enjoyed by natural or juridical persons, including government- owned and controlled corporations, section 193 of the LGC prescribes the general rule, viz, they are withdrawn upon the effectivity of the LGC, except those granted to local water districts, cooperatives, duly registered under RA 6938, non stock and nonprofit hospitals and educational institutions and unless otherwise provided in the LGC.
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