Osmeña v Orbos
GR No 99886, March 31, 1993
FACTS:
President Marcos created a special account in the General Fund designated as the Oil Price Stabilization Fund (OPSF). The OPSF was designated to reimburse oil companies for cost increases in crude oil. Subsequently, EO 137 expanded the grounds for reimbursement to oil companies for cost underrecovery. Now, the petition avers that the creation of the trust fund violates the Constitution that if a special tax is collected for a specific purpose, the revenue generated as a special fund to be used only for the purpose indicated.
ISSUE:
Is the OPSF constitutional?
RULING:
Yes. The tax collected is not in pure exercise of the taxing power. It is levied with a regulatory purpose, to provide a means for the stabilization of the petroleum products industry. The levy is primarily in the exercise of the police power of the State.
GR No 99886, March 31, 1993
FACTS:
President Marcos created a special account in the General Fund designated as the Oil Price Stabilization Fund (OPSF). The OPSF was designated to reimburse oil companies for cost increases in crude oil. Subsequently, EO 137 expanded the grounds for reimbursement to oil companies for cost underrecovery. Now, the petition avers that the creation of the trust fund violates the Constitution that if a special tax is collected for a specific purpose, the revenue generated as a special fund to be used only for the purpose indicated.
ISSUE:
Is the OPSF constitutional?
RULING:
Yes. The tax collected is not in pure exercise of the taxing power. It is levied with a regulatory purpose, to provide a means for the stabilization of the petroleum products industry. The levy is primarily in the exercise of the police power of the State.
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