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    Walter Lutz vs. J. Antonio Araneta

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    ChaDiaz
    This case involved a dispute over the constitutionality of Commonwealth Act No. 567, also known as the "Sugar Adjustment Act", which levied taxes to support the sugar industry. The plaintiff argued that the tax was unconstitutional because supporting the sugar industry alone was not a valid public purpose for which to levy taxes. However, the Court held that the sugar industry was an important source of wealth and employment in the Philippines, affecting the welfare of many citizens. Therefore, promoting and protecting the sugar industry through tax revenues was a valid exercise of the state's police power aimed at the general public welfare.

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    Walter Lutz vs. J. Antonio Araneta

    Uploaded by

    ChaDiaz
    1K views2 pages
    This case involved a dispute over the constitutionality of Commonwealth Act No. 567, also known as the "Sugar Adjustment Act", which levied taxes to support the sugar industry. The plaintiff argued that the tax was unconstitutional because supporting the sugar industry alone was not a valid public purpose for which to levy taxes. However, the Court held that the sugar industry was an important source of wealth and employment in the Philippines, affecting the welfare of many citizens. Therefore, promoting and protecting the sugar industry through tax revenues was a valid exercise of the state's police power aimed at the general public welfare.

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    tax digest

    Original Title

    Walter Lutz vs. j. Antonio Araneta

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    This case involved a dispute over the constitutionality of Commonwealth Act No. 567, also known as the "Sugar Adjustment Act", which levied taxes to support the sugar industry. The plaintiff argued that the tax was unconstitutional because supporting the sugar industry alone was not a valid public purpose for which to levy taxes. However, the Court held that the sugar industry was an important source of wealth and employment in the Philippines, affecting the welfare of many citizens. Therefore, promoting and protecting the sugar industry through tax revenues was a valid exercise of the state's police power aimed at the general public welfare.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    Walter Lutz vs. J. Antonio Araneta

    Uploaded by

    ChaDiaz
    This case involved a dispute over the constitutionality of Commonwealth Act No. 567, also known as the "Sugar Adjustment Act", which levied taxes to support the sugar industry. The plaintiff argued that the tax was unconstitutional because supporting the sugar industry alone was not a valid public purpose for which to levy taxes. However, the Court held that the sugar industry was an important source of wealth and employment in the Philippines, affecting the welfare of many citizens. Therefore, promoting and protecting the sugar industry through tax revenues was a valid exercise of the state's police power aimed at the general public welfare.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    WALTER LUTZ vs. J.

    ANTONIO ARANETA
    G.R. No. L-7859
    December 22, 1955
    The protection of a large industry constituting one of the great
    sources of the state's wealth and therefore directly or
    indirectly affecting the welfare of so great a portion of the
    population of the State is affected to such an extent by public
    interests as to be within the police power of the sovereign.

    FACTS:
    Plaintiff, Walter Lutz, in his capacity as Judicial
    Administrator of the Intestate Estate of Antonio Jayme Ledesma,
    seeks to recover from the Collector of Internal Revenue the sum
    of P14,666.40 paid by the estate as taxes, under section 3 of the
    Act, for the crop years 1948-1949 and 1949-1950; alleging that
    such tax is unconstitutional and void, being levied for the aid
    and support of the sugar industry exclusively, which in
    plaintiff's opinion is not a public purpose for which a tax may
    be constitutionally levied. The action having been dismissed by
    the Court of First Instance, the plaintiffs appealed the case
    directly to this Court

    ISSUE:
    Whether or not Commonwealth Act No. 567, otherwise known as
    the Sugar Adjustment Act constitutional? Despite its being
    allegedly violative of the equal protection clause, the purpose
    of which is not for the benefit of the general public but for the
    rehabilitation only of the sugar industry?

    HELD:
    Yes. The protection and promotion of the sugar industry is a
    matter of public concern, it follows that the Legislature may
    determine within reasonable bounds what is necessary for its
    protection and expedient for its promotion. Here, the legislative
    discretion must be allowed to fully play, subject only to the

    test of reasonableness; and it is not contended that the means


    provided in the law bear no relation to the objective pursued or
    are oppressive in character. If objective and methods are alike
    constitutionally valid, no reason is seen why the state may not
    levy taxes to raise funds for their prosecution and attainment.
    Taxation may be made the implement of the state's police power.
    This Court can take judicial notice of the fact that sugar
    production is one of the great industries of our nation, sugar
    occupying a leading position among its export products; that it
    gives employment to thousands of laborers in fields and
    factories; that it is a great source of the state's wealth, is
    one of the important sources of foreign exchange needed by our
    government, and is thus pivotal in the plans of a regime
    committed to a policy of currency stability. Its promotion,
    protection and advancement, therefore redounds greatly to the
    general welfare.

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