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    Abakada Guro Party List

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    Law SSC
    The Supreme Court ruled that the stand-by authority granted to the President to increase the VAT rate under certain conditions did not constitute an undue delegation of legislative power. Congress defined the conditions that would trigger an increase in the VAT rate to 12% and mandated that the Secretary of Finance determine if either condition was satisfied based on statistical data. If a condition was met, the Secretary was required to inform the President, who then had a ministerial duty to impose the increased VAT rate as directed by law. This was not a delegation of legislative discretion but an ascertainment of facts upon which the implementation of the law was contingent.

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    Abakada Guro Party List

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    Law SSC
    97 views1 page
    The Supreme Court ruled that the stand-by authority granted to the President to increase the VAT rate under certain conditions did not constitute an undue delegation of legislative power. Congress defined the conditions that would trigger an increase in the VAT rate to 12% and mandated that the Secretary of Finance determine if either condition was satisfied based on statistical data. If a condition was met, the Secretary was required to inform the President, who then had a ministerial duty to impose the increased VAT rate as directed by law. This was not a delegation of legislative discretion but an ascertainment of facts upon which the implementation of the law was contingent.

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    The Supreme Court ruled that the stand-by authority granted to the President to increase the VAT rate under certain conditions did not constitute an undue delegation of legislative power. Congress defined the conditions that would trigger an increase in the VAT rate to 12% and mandated that the Secretary of Finance determine if either condition was satisfied based on statistical data. If a condition was met, the Secretary was required to inform the President, who then had a ministerial duty to impose the increased VAT rate as directed by law. This was not a delegation of legislative discretion but an ascertainment of facts upon which the implementation of the law was contingent.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    97 views1 page

    Abakada Guro Party List

    Uploaded by

    Law SSC
    The Supreme Court ruled that the stand-by authority granted to the President to increase the VAT rate under certain conditions did not constitute an undue delegation of legislative power. Congress defined the conditions that would trigger an increase in the VAT rate to 12% and mandated that the Secretary of Finance determine if either condition was satisfied based on statistical data. If a condition was met, the Secretary was required to inform the President, who then had a ministerial duty to impose the increased VAT rate as directed by law. This was not a delegation of legislative discretion but an ascertainment of facts upon which the implementation of the law was contingent.

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    of 1

    Abakada Guro Party List, et al vs Exec. Sec.

    Ermita
    Facts: On May 24, 2005, the President signed into law Republic
    Act 933 or the !A" Re#or$ Act% &e#ore the law too' e##ect on
    (uly ), 2005, the *ourt issued a "RO en+oining go,ern$ent #ro$
    i$ple$enting the law in response to a slew o# petitions #or
    certiorari and prohibition -uestioning the constitutionality o# the
    new law%
    "he challenged section o# R%A% .o% 933 is the co$$on pro,iso in
    /ections 4, 5 and 01 2"hat the President, upon the reco$$endation
    o# the /ecretary o# 3inance, shall, e##ecti,e (anuary ), 2000, raise
    the rate o# ,alue4added ta5 to )26, a#ter any o# the #ollowing
    conditions has been satis#ied1
    7i8 !alue4added ta5 collection as a percentage o# 9ross :o$estic
    Product 79:P8 o# the pre,ious year e5ceeds two and #our4#i#th
    percent 72 4;568<
    or 7ii8 .ational go,ern$ent de#icit as a percentage o# 9:P o# the
    pre,ious year e5ceeds one and one4hal# percent 7)=68>
    Petitioners allege that the grant o# stand4by authority to the
    President to increase the !A" rate is an abdication by *ongress o#
    its e5clusi,e power to ta5 because such delegation is not co,ered
    by /ection 2? 728, Article !@ *onsti% "hey argue that !A" is a ta5
    le,ied on the sale or e5change o# goods and ser,ices which canAt
    be included within the pur,iew o# tari##s under the e5e$ption
    delegation since this re#ers to custo$s duties, tolls or tribute
    payable upon $erchandise to the go,ern$ent and usually i$posed
    on i$ported;e5ported goods% "hey also said that the President has
    powers to cause, in#luence or create the conditions pro,ided by law
    to bring about the conditions precedent% Moreo,er, they allege that
    no guiding standards are $ade by law as to how the /ecretary o#
    3inance will $a'e the reco$$endation%
    Issue: Bhether or not the RA 933Cs stand4by authority to the
    D5ecuti,e to increase the !A" rate, especially on account o# the
    reco$$endatory power granted to the /ecretary o# 3inance,
    constitutes undue delegation o# legislati,e powerE .O
    Held: "he powers which *ongress is prohibited #ro$ delegating
    are those which are strictly, or inherently and e5clusi,ely,
    legislati,e% Purely legislati,e power which can ne,er be delegated
    is the authority to $a'e a co$plete law4 co$plete as to the ti$e
    when it shall ta'e e##ect and as to who$ it shall be applicable, and
    to deter$ine the e5pediency o# its enact$ent% @t is the nature o# the
    power and not the liability o# its use or the $anner o# its e5ercise
    which deter$ines the ,alidity o# its delegation%
    "he e5ceptions are1
    7a8 delegation o# tari## powers to President under *onstitution
    7b8 delegation o# e$ergency powers to President under
    *onstitution
    7c8 delegation to the people at large
    7d8 delegation to local go,ern$ents
    7e8 delegation to ad$inistrati,e bodies
    3or the delegation to be ,alid, it $ust be co$plete and it $ust #i5 a
    standard% A su##icient standard is one which de#ines legislati,e
    policy, $ar's its li$its, $aps out its boundaries and speci#ies the
    public agency to apply it%
    @n this case, it is not a delegation o# legislati,e power &F" a
    delegation o# ascertain$ent o# #acts upon which en#orce$ent and
    ad$inistration o# the increased rate under the law is contingent%
    "he legislature has $ade the operation o# the )26 rate e##ecti,e
    (anuary ), 2000, contingent upon a speci#ied #act or condition% @t
    lea,es the entire operation or non4operation o# the )26 rate upon
    #actual $atters outside o# the control o# the e5ecuti,e% .o
    discretion would be e5ercised by the President% Gighlighting the
    absence o# discretion is the #act that the word /GAHH is used in
    the co$$on pro,iso% "he use o# the word /GAHH connotes a
    $andatory order% @ts use in a statute denotes an i$perati,e
    obligation and is inconsistent with the idea o# discretion%
    "hus, it is the $inisterial duty o# the President to i$$ediately
    i$pose the )26 rate upon the e5istence o# any o# the conditions
    speci#ied by *ongress% "his is a duty, which cannot be e,aded by
    the President% @t is a clear directi,e to i$pose the )26 !A" rate
    when the speci#ied conditions are present%
    *ongress +ust granted the /ecretary o# 3inance the authority to
    ascertain the e5istence o# a #act444 whether by :ece$ber 3), 2005,
    the !A" collection as a percentage o# 9:P o# the pre,ious year
    e5ceeds 2 4;5 6 or the national go,ern$ent de#icit as a percentage
    o# 9:P o# the pre,ious year e5ceeds one and )=6% @# either o#
    these two instances has occurred, the /ecretary o# 3inance, by
    legislati,e $andate, $ust sub$it such in#or$ation to the
    President%
    @n $a'ing his reco$$endation to the President on the e5istence o#
    either o# the two conditions, the /ecretary o# 3inance is not acting
    as the alter ego o# the President or e,en her subordinate% Ge is
    acting as the agent o# the legislati,e depart$ent, to deter$ine and
    declare the e,ent upon which its e5pressed will is to ta'e e##ect%
    "he /ecretary o# 3inance beco$es the $eans or tool by which
    legislati,e policy is deter$ined and i$ple$ented, considering that
    he possesses all the #acilities to gather data and in#or$ation and
    has a $uch broader perspecti,e to properly e,aluate the$% Gis
    #unction is to gather and collate statistical data and other pertinent
    in#or$ation and ,eri#y i# any o# the two conditions laid out by
    *ongress is present%
    *ongress does not abdicate its #unctions or unduly delegate power
    when it describes what +ob $ust be done, who $ust do it, and what
    is the scope o# his authority< in our co$ple5 econo$y that is
    #re-uently the only way in which the legislati,e process can go
    #orward%
    "here is no undue delegation o# legislati,e power but only o# the
    discretion as to the e5ecution o# a law% "his is constitutionally
    per$issible% *ongress did not delegate the power to ta5 but the
    $ere i$ple$entation o# the law%

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