G.R. No. L-6093 – 94 Phil. 387 – Taxation Law – Basic Principles – Scope and Limitation of Taxation – Equal Protection Clause
In 1946, the municipal council of Cordova, Cebu issued an ordinance which imposed, among others, an annual tax of P150.00 upon the occupation or the exercise of the privilege of an “installation manager.”
Shell Company assailed the validity of the said ordinance on the ground that it violates the equal protection clause. It appears that only Shell had, at that time, an installation manager. In short, there is only one installation manager in Cordova, Cebu. So Shell felt like the tax ordinance was merely targeting Shell. Shell now wants the Treasurer of Cordova, E.E. Vaño to be enjoined from implementing the law.
ISSUE: Whether or not the tax ordinance is not valid for being violative of the equal protection clause.
HELD: No. The fact that there is no other person or company with a position for an installation manager does not make the ordinance discriminatory. The law is and will be applicable to any person or firm who exercises such calling or occupation named or designated as “installation manager.” In short, the law is applicable to present and future conditions.
Note again the requisites for a valid classification (not mentioned in this particular case but mentioned in other relevant cases):
1. must rest on substantial distinctions;
2. must be germane to the purposes of the law;
3. must not be limited to existing conditions only; and
4. must apply equally to all members of the same class.
