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    Petron v. Tiangco

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    Cates013
    Petron Corp. operates a fuel depot in Navotas that sells diesel fuel to fishing vessels. Navotas assessed Petron over 6 million pesos in business taxes for 1997-2001. Petron protested, arguing fuel sales are exempt from local taxation under the LGC. The RTC dismissed Petron's case. The Supreme Court ruled in favor of Petron, finding that section 133(h) of the LGC prohibits local governments from imposing "taxes, fees or charges" on petroleum products. The prohibition extends beyond just excise taxes and includes all forms of taxation. Therefore, Navotas cannot impose a business tax on Petron's fuel sales.

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    Petron v. Tiangco

    Uploaded by

    Cates013
    799 views1 page
    Petron Corp. operates a fuel depot in Navotas that sells diesel fuel to fishing vessels. Navotas assessed Petron over 6 million pesos in business taxes for 1997-2001. Petron protested, arguing fuel sales are exempt from local taxation under the LGC. The RTC dismissed Petron's case. The Supreme Court ruled in favor of Petron, finding that section 133(h) of the LGC prohibits local governments from imposing "taxes, fees or charges" on petroleum products. The prohibition extends beyond just excise taxes and includes all forms of taxation. Therefore, Navotas cannot impose a business tax on Petron's fuel sales.

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    Petron Corp. operates a fuel depot in Navotas that sells diesel fuel to fishing vessels. Navotas assessed Petron over 6 million pesos in business taxes for 1997-2001. Petron protested, arguing fuel sales are exempt from local taxation under the LGC. The RTC dismissed Petron's case. The Supreme Court ruled in favor of Petron, finding that section 133(h) of the LGC prohibits local governments from imposing "taxes, fees or charges" on petroleum products. The prohibition extends beyond just excise taxes and includes all forms of taxation. Therefore, Navotas cannot impose a business tax on Petron's fuel sales.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    799 views1 page

    Petron v. Tiangco

    Uploaded by

    Cates013
    Petron Corp. operates a fuel depot in Navotas that sells diesel fuel to fishing vessels. Navotas assessed Petron over 6 million pesos in business taxes for 1997-2001. Petron protested, arguing fuel sales are exempt from local taxation under the LGC. The RTC dismissed Petron's case. The Supreme Court ruled in favor of Petron, finding that section 133(h) of the LGC prohibits local governments from imposing "taxes, fees or charges" on petroleum products. The prohibition extends beyond just excise taxes and includes all forms of taxation. Therefore, Navotas cannot impose a business tax on Petron's fuel sales.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    1

    TAX - GRUBA

    Petron Corp. v. Mayor Tiangco and Treasurer Enriquez of the Municipality of Navotas

    Facts:

    Petron maintains a depot or bulk plant in Navotas Fishport Complex. Through the said depot, it sells diesel fuels to the vessels used in commercial fishing in and around Manila Bay. Later, Petron received a letter from the office of Mayor Tiangco assessing it for business taxes in the amouont of 6.2M covering 1997-2001 pursuant to the Navotas Revenue Code. A protest was filed by Petron arguing that under the IRR of the NIRC, it is exempt from local business tax. Also, an opinion was rendered by the Bureau of Local Government Finance providing for that sales of petroleum fuels are NOT subject to local taxation. Letter protest was denied and a final demand to pay was sent to Petron. Petron filed a complaint for cancellation of assessment with TRO before the RTC. RTC dismissed the complaint.

    contrast, the later reference to "taxes, fees and charges" pertains only to one class of articles of the many subjects of excise taxes, specifically, "petroleum products". While local government units are authorized to burden all such other class of goods with "taxes, fees and charges," excepting excise taxes, a specific prohibition is imposed barring the levying of any other type of taxes with respect to petroleum products.

    Issue: WON the municipality of Navotas may impose a business tax on Petron? NO! Ratio: Section 133(h) of the LGC reads as follows: Sec. 133. Common Limitations on the Taxing Powers of Local Government Units. - Unless otherwise provided herein, the exercise of the taxing powers of provinces, cities, municipalities, and Barangays shall not extend to the levy of the following: xxx (h) Excise taxes on articles enumerated under the National Internal Revenue Code, as amended, and taxes, fees or charges on petroleum products;

    The language of Section 133(h) makes plain that the prohibition with respect to petroleum products extends not only to excise taxes thereon, but all "taxes, fees and charges." The earlier reference in paragraph (h) to excise taxes comprehends a wider range of subjects of taxation: all articles already covered by excise taxation under the NIRC, such as alcohol products, tobacco products, mineral products, automobiles, and such non-essential goods as jewelry, goods made of precious metals, perfumes, and yachts and other vessels intended for pleasure or sports. In

    ALBERTO BATTAC CO DELA ROSA GUERRERO REVOTE SALVADOR TAYAG

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