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PLDT vs City of Davao & the City Treasurer of Davao [DISSENTING OPINION, PUNO, J.]

PHILIPPINE LONG DISTANCE TELEPHONE COMPANY, INC., petitioner, vs. CITY OF DAVAO and ADELAIDA B. BARCELONA, in her capacity as the City Treasurer of Davao, respondents.

G.R. No. 143867 | 2003-03-25

DISSENTING OPINION


PUNO, J.:

The sole issue in the case at bar is whether petitioner Philippine Long Distance Telephone Company, Inc. (PLDT) is liable to pay the franchise tax imposed by the City of Davao. The issue can be resolved only by untangling the different laws dealing with local government and the telecommunications industry. It is thus necessary to first lay down these laws.

On January 1, 1992, the Local Government Code took effect. The Code pertinently provides:
 
“Sec. 137. Franchise Tax.- Notwithstanding any exemption granted by any law or other special law, the province may impose a tax on business...