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City of Pasig vs. MERALCO

CITY OF PASIG and CRISPINA V. SALUMBRE, in her capacity as OIC-City Treasurer of Pasig City, Petitioners vs. MANILA ELECTRIC COMPANY, Respondent

G.R. No. 181710 | 2018-03-07

Republic of the Philippines
Supreme Court
Manila
 
THIRD DIVISION
 
D E C I S I O N
 
MARTIRES, J.:
 
Under the Local Government Code (LGC) of 1991, a municipality is bereft of authority to levy and impose franchise tax on franchise holders within its territorial jurisdiction. That authority belongs to provinces and cities only.1 A franchise tax levied by a municipality is, thus, null and void. The nullity is not cured by the subsequent conversion of the municipality into a city.
 
At bar is a petition for review under Rule 45 of the Rules of Court which seeks a reversal of the Decision2 dated 28...