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I. III.
Issue: Power of the Senate to propose amendments to revenue bills. Issue: The President's certification.
Petitioner’s Contention: Petitioners (Tolentino, Kilosbayan, Inc., Philippine Airlines Petitioner’s Contention: The fallacy in thinking that H. No. 11197 and S. No. 1630
(PAL), Roco, and Chamber of Real Estate and Builders Association (CREBA)) are distinct and unrelated measures also accounts for the petitioners' (Kilosbayan's and
reiterate previous claims made by them that R.A. No. 7716 did not "originate PAL's) contention that because the President separately certified to the need for the
exclusively" in the House of Representatives as required by Art. VI, §24 of the immediate enactment of these measures, his certification was ineffectual and void.
Constitution.
Supreme Court’s Ruling: As to what Presidential certification can accomplish, we
Supreme Court’s Ruling: While Art. VI, §24 provides that all appropriation, revenue have already explained in the main decision that the phrase "except when the President
or tariff bills, bills authorizing increase of the public debt, bills of local application, certifies to the necessity of its immediate enactment, etc." in Art. VI, §26 (2) qualifies
and private bills must "originate exclusively in the House of Representatives," it also not only the requirement that "printed copies [of a bill] in its final form [must be]
adds, "but the Senate may propose or concur with amendments." In the exercise of this distributed to the members three days before its passage" but also the requirement that
power, the Senate may propose an entirely new bill as a substitute measure. before a bill can become a law it must have passed "three readings on separate days."
To except from this procedure the amendment of bills which are required to originate The exception is based on the prudential consideration that if in all cases three readings
in the House by prescribing that the number of the House bill and its other parts up to on separate days are required and a bill has to be printed in final form before it can be
the enacting clause must be preserved although the text of the Senate amendment may passed, the need for a law may be rendered academic by the occurrence of the very
be incorporated in place of the original body of the bill is to insist on a mere emergency or public calamity which it is meant to address.
technicality. At any rate there is no rule prescribing this form. S. No. 1630, as a
The purpose for which three readings on separate days is required is said to be two-
substitute measure, is therefore as much an amendment of H. No. 11197 as any which
fold: (1) to inform the members of Congress of what they must vote on and (2) to give
the Senate could have made.
them notice that a measure is progressing
through the enacting process, thus enabling them and others interested in the measure
II. to prepare their positions with reference to it.
Issue: S. No. 1630 a mere amendment of H. No. 11197. These purposes were substantially achieved in the case of R.A. No. 7716.
Petitioner’s Contention: Petitioners contend that S. No. 1630 a mere amendment of
H. No. 11197.
IV.
Supreme Court’s Ruling: If the House bill had been approved by the Senate, there
Issue: Power of Conference Committee.
would have been no need of a conference; but precisely because the Senate passed
another bill on the same subject matter, the conference committee had to be created, Petitioner’s Contention: It is contended (principally by Kilosbayan, Inc. and the
and we are now considering the report of that committee. Movement of Attorneys for Brotherhood, Integrity and Nationalism, Inc. (MABINI))
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that in violation of the constitutional policy of full public disclosure and the people's established, assessed or collected by any municipal, city, provincial or national
right to know (Art. II, §28 and Art. III, §7) the Conference Committee met for two authority or government agency, now or in the future."
days in executive session with only the conferees present.
It was contended that the withdrawal of franking privileges was not expressed in the
Supreme Court’s Ruling: As pointed out in our main decision, even in the United title of the law. In holding that there was sufficient description of the subject of the law
States it was customary to hold such sessions with only the conferees and their staffs in its title, including the repeal of franking privileges, this Court held:
in attendance and it was only in 1975 when a new rule was adopted requiring open
To require every end and means necessary for the accomplishment of the
sessions. Unlike its American counterpart, the Philippine Congress has not adopted a
general objectives of the statute to be expressed in its title would not only be
rule prescribing open hearings for conference committees.
unreasonable but would actually render legislation impossible. [Cooley,
It is nevertheless claimed that in the United States, before the adoption of the rule in Constitutional Limitations, 8th Ed., p. 297]
1975, at least staff members were present. These were staff members of the Senators
and Congressmen, however, who may be presumed to be their confidential men, not
stenographers as in this case who on the last two days of the conference were excluded. VI.
There is no showing that the conferees themselves did not take notes of their
proceedings so as to give petitioner Kilosbayan basis for claiming that even in secret Issue: Claims of press freedom and religious liberty.
diplomatic negotiations involving state interests, conferees keep notes of their Petitioner’s Contention: It is contended by the PPI that by removing the exemption
meetings. Above all, the public's right to know was fully served because the of the press from the VAT while maintaining those granted to others, the law
Conference Committee in this case submitted a report showing the changes made on discriminates against the press. At any rate, it is averred, "even nondiscriminatory
the differing versions of the House and the Senate. taxation of constitutionally guaranteed freedom is unconstitutional."
Supreme Court’s Ruling: The Court was speaking in that case of a license tax, which,
V. unlike an ordinary tax, is mainly for regulation. Its imposition on the press is
unconstitutional because it lays a prior restraint on the exercise of its right. Hence,
Issue: The titles of S. No. 1630 and H. No. 11197. although its application to others, such those selling goods, is valid, its application to
the press or to religious groups, such as the Jehovah's Witnesses, in connection with
Petitioner’s Contention: PAL maintains that R.A. No. 7716 violates Art. VI, §26 (1)
the latter's sale of religious books and pamphlets, is unconstitutional. As the U.S.
of the Constitution which provides that "Every bill passed by Congress shall embrace
Supreme Court put it, "it is one thing to impose a tax on income or property of a
only one subject which shall be expressed in the title thereof." PAL contends that the
preacher. It is quite another thing to exact a tax on him for delivering a sermon."
amendment of its franchise by the withdrawal of its exemption from the VAT is not
expressed in the title of the law. The VAT is, however, different. It is not a license tax. It is not a tax on the exercise of
a privilege, much less a constitutional right. It is imposed on the sale, barter, lease or
Supreme Court’s Ruling: Pursuant to §13 of P.D. No. 1590, PAL pays a franchise
exchange of goods or properties or the sale or exchange of services and the lease of
tax of 2% on its gross revenue "in lieu of all other taxes, duties, royalties, registration,
properties purely for revenue purposes. To subject the press to its payment is not to
license and other fees and charges of any kind, nature, or description, imposed, levied,
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burden the exercise of its right any more than to make the press pay income tax or in view of the economic crisis which then beset the nation. It is true that after P.D. No.
subject it to general regulation is not to violate its freedom under the Constitution. 2008, §2 had restored the tax exemptions of cooperatives in 1986, the exemption was
again repealed by E.O. No. 93, §1, but then again cooperatives were not the only ones
whose exemptions were withdrawn. The withdrawal of tax incentives applied to all,
VII. including government and private entities.

Issue: Alleged violations of the due process, equal protection and contract clauses and In the second place, the Constitution does not really require that cooperatives be
the rule on taxation. granted tax exemptions in order to promote their growth and viability. Hence, there is
no basis for petitioner's assertion that the government's policy toward cooperatives had
Petitioner’s Contention: CREBA asserts that R.A. No. 7716 (1) impairs the been one of vacillation, as far as the grant of tax privileges was concerned, and that it
obligations of contracts, (2) classifies transactions as covered or exempt without was to put an end to this indecision that the constitutional provisions cited were
reasonable basis and (3) violates the rule that taxes should be uniform and equitable adopted. Perhaps as a matter of policy cooperatives should be granted tax exemptions,
and that Congress shall "evolve a progressive system of taxation." but that is left to the discretion of Congress. If Congress does not grant exemption and
Supreme Court’s Ruling: Equality and uniformity of taxation means that all taxable there is no discrimination to cooperatives, no violation of any constitutional policy can
articles or kinds of property of the same class be taxed at the same rate. The taxing be charged.
power has the authority to make reasonable and natural classifications for purposes of
taxation. To satisfy this requirement it is enough that the statute or ordinance applies
equally to all persons, forms and corporations placed in similar situation. (City of
Baguio v. De Leon, supra; Sison, Jr. v. Ancheta, supra)

VIII.
Issue: Alleged violation of policy towards cooperatives.
Petitioner’s Contention: The Cooperative Union of the Philippines (CUP), after
briefly surveying the course of legislation, argues that it was to adopt a definite policy
of granting tax exemption to cooperatives that the present Constitution embodies
provisions on cooperatives. To subject cooperatives to the VAT would therefore be to
infringe a constitutional policy.
Supreme Court’s Ruling: In the first place, it is not true that P.D. No. 1955 singled
out cooperatives by withdrawing their exemption from income and sales taxes under
P.D. No. 175, §5. What P.D. No. 1955, §1 did was to withdraw the exemptions and
preferential treatments theretofore granted to private business enterprises in general,