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Philippine Match Co., Ltd. vs. City of Cebu

PHILIPPINE MATCH CO., LTD., plaintiff-appellant, vs. THE CITY OF CEBU and JESUS E. ZABATE, Acting City Treasurer, defendants-appellees.

G.R. No. L-30745 | 1978-01-18

Republic of the Philippines
SUPREME COURT
Manila
 
SECOND DIVISION
 
D E C I S I O N
 
AQUINO, J:

This case is about the legality of the tax collected by the City of Cebu on sales of matches stored by the Philippine Match Co., Ltd. in Cebu City but delivered to customers outside of the city.

Ordinance No. 279 of Cebu City (approved by the mayor on March 10, 1960 and also approved by the provincial board) is "an ordinance imposing a quarterly tax on gross sales or receipts of merchants, dealers, importers and manufacturers or any commodity doing business" in Cebu City. It imposes a sales tax of one percent (1%) on the gross...