MACTAN CEBY INTL AIRPORT VS MARCOS

FACTS:
RA 6958, mandated to “principally undertake the economical, efficient and effective control,
management and supervision of the MCIA in the Province of Cebu and the Lahug Airport in Cebu City”.
MCIAA will be exempt from realty taxes imposed by the National Government or any of its political
subdivisions, agencies and instrumentalities. Officer of the Treasurer of Cebu City demanded payment for
realty taxes on parcels of land belonging to petitioner. Petitioner objected invoking its tax exemption. The
city refused insisting that petitioner is a GOCC performing proprietary functions whose tax exemption was
withdrawn by Sections 193 and 234 of the LGC. RTC dismissed the petitioner ruling that the LGC withdrew
the tax exemption granted the GOCCs.

ISSUE: WON Cebu City has the power to impose taxes on MCIAA

RULING: YES.
General rule is that the power to tax is an incident of sovereignty and is unlimited in its range,
against its abuse is to be found only in the responsibility of the legislature which imposes the tax on the
constituency who are to pay it. Taxes are the lifeblood of the nation; the law frowns against exemptions
from Taxation thus construed strictissimi juris against the taxpayers and liberally in favor of the taxing
authority. Claim of exemption must be clearly shown and based on language in the law too plain to be
mistaken. There can be no question in its charter that it is exempt from payment of realty taxes. However,
taxation is the rule and exemption is the exception, the exemption may thus be withdrawn at the pleasure
of the taxing authority as done by the LGU of Cebu. The power to tax is primarily vested in the Congress
however, in our jurisdiction, it may be exercised by local legislative bodies as conferred by Sec 5 Art 10 of
the 1987 Constitution subject to the guidelines and limitations which Congress may provide which must
be consistent with the basic policy of local autonomy