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Thursday, April 18, 2013

Basco v. PAGCOR


Basco v. PAGCOR
G.R. No. 91649 May 14, 1991
Paras, J.

Held:

The power of local government to “impose taxes and fees” is always subject to “limitations” which Congress may provide by law. Since PD 1869 remains an “operative” law until “amended, repealed or revoked” (Sec. 3, Art. XVIII, 1987 Constitution), its “exemption clause” remains as an exception to the exercise of the power of local governments to impose taxes and fees. It cannot therefore be violative but rather is consistent with the principle of local autonomy. Besides, the principle of local autonomy under the 1987 Constitution simply means “decentralization”. It does not make local governments sovereign within the state or an “imperium in imperio.”

                Local Government has been described as a political subdivision of a nation or state which is constituted by law and has substantial control of local affairs. In a unitary system of government, such as the government under the Philippine Constitution, local governments can only be an intra sovereign subdivision of one sovereign nation, it cannot be an imperium in imperio. Local government in such a system can only mean a measure of decentralization of the function of government.

The matter of regulating, taxing or otherwise dealing with gambling is a State concern and hence, it is the sole prerogative of the State to retain it or delegate it to local governments.

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