G.R. No. L-1104; May 31, 1949
EASTERN THEATRICAL CO., INC., ET AL. vs. VICTOR ALFONSO, ET AL.

FACTS

Twelve corporations engaged in the motion picture business filed a complaint challenging the validity of Manila City Ordinance No. 2958, enacted on April 25, 1946. The ordinance imposed a graduated fee on the price of every admission ticket sold by cinematographs, theaters, vaudeville companies, theatrical shows, and boxing exhibitions. The plaintiffs, operators of theaters in Manila, argued that the ordinance was unconstitutional and invalid on several grounds, including violation of the principles of uniformity and equality of taxation, excess of the Municipal Board’s legislative power under the city charter, conflict with existing national revenue laws, and for being arbitrary and oppressive. The Court of First Instance of Manila upheld the ordinance’s validity.

ISSUE

Whether Ordinance No. 2958 of the City of Manila is valid and constitutional.

RULING

Yes, the ordinance is valid and constitutional. The Supreme Court affirmed the lower court’s decision. The Municipal Board of Manila had the authority to enact the ordinance under Section 2444(m) of the Revised Administrative Code, which expressly grants the power to tax, fix license fees, and regulate businesses including theaters and cinematographs. There was no implied repeal of this city power by the enactment of the National Internal Revenue Code ( Commonwealth Act No. 466 ), as both can operate concurrently without conflict. The ordinance does not violate the constitutional requirement of uniformity and equality of taxation because it applies equally to all businesses within the same class (e.g., cinematographs, theaters) and the taxing power may make reasonable classifications. The fact that other places of amusement (e.g., race tracks, cockpits) are not taxed does not render the classification invalid, as the taxed establishments constitute a distinct class.

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