Villegas v Hiu Chiong Tsai Pao Ho (1978)

Villegas v Hiu Chiong Tsai Pao Ho GR No L-29646, November 10, 1978

FACTS:
The Municipal Board of Manila enacted Ordinance 6537 requiring aliens (except those employed in the diplomatic and consular missions of foreign countries, in technical assistance programs of the government and another country, and members of religious orders or congregations) to procure the requisite mayor’s permit so as to be employed or engage in trade in the City of Manila. Thus, a case was filed with CFI-Manila to stop enforcement of the ordinance. CFI-Manila declared the ordinance void. Thus, the present petition for certiorari.

ISSUES:

1. (1)  Is the ordinance violative of the cardinal rule of uniformity of taxation?
   
2. (2)  Does it violate the principle against undue designation of legislative power?
   
3. (3)  Does it violate the due process and equal protection clauses of the Constitution?
   

RULING:

1. (1)  Yes. The P50 fee is unreasonable not only because it is excessive but because it fails to consider valid substantial differences in situation among individual aliens who are required to pay it. The same amount of P50 is being collected from every employed alien whether he is casual or permanent, part time or full time or whether he is a lowly employee or a highly paid executive.
   
   
2. (2)  Yes. It does not lay down any criterion or standard to guide the Mayor in the exercise of his discretion. It has been held that where an ordinance of a municipality fails to state any policy or to set up any standard to guide or limit the action, thus conferring upon the Mayor arbitrary and unrestricted power, such ordinance is invalid.
   
   
3. (3)  Yes. Requiring a person before he can be employed to get a permit from the City Mayor of Manila who may withhold or refuse it at will is tantamount to denying him the basic right of the people in the Philippines to engage in a means of livelihood. The shelter of protection under the due process and equal protection clause is given to all persons, both aliens and citizens.
   Thus, the ordinance is invalid.