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    Lutz v. Araneta, G.R. No. L-7859, December 22, 1955

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    Dennise
    [DIGEST] Lutz v. Araneta, G.R. No. L-7859, December 22, 1955 Concept: Power of Taxation Subject: Constitutional Law, Political Law,

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    Lutz v. Araneta, G.R. No. L-7859, December 22, 1955

    Uploaded by

    Dennise
    430 views1 page
    [DIGEST] Lutz v. Araneta, G.R. No. L-7859, December 22, 1955 Concept: Power of Taxation Subject: Constitutional Law, Political Law,

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    [DIGEST] Lutz v. Araneta, G.R. No. L-7859, December 22, 1955 Concept: Power of Taxation Subject: Constitutional Law, Political Law,

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    430 views1 page

    Lutz v. Araneta, G.R. No. L-7859, December 22, 1955

    Uploaded by

    Dennise
    [DIGEST] Lutz v. Araneta, G.R. No. L-7859, December 22, 1955 Concept: Power of Taxation Subject: Constitutional Law, Political Law,

    Copyright:

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

    Lutz v.

    Araneta; Power of Taxation

    Republic of the Philippines


    SUPREME COURT
    Manila
    EN BANC

    G.R. No. L-7859        December 22, 1955

    WALTER LUTZ, as Judicial Administrator of the Intestate Estate of the deceased Antonio
    Jayme Ledesma, plaintiff-appellant,

    vs.

    J. ANTONIO ARANETA, as the Collector of Internal Revenue, defendant-appellee.


    Ernesto J. Gonzaga for appellant.
    Office of the Solicitor General Ambrosio Padilla, First Assistant Solicitor General
    Guillermo E. Torres and Solicitor Felicisimo R. Rosete for appellee.

    REYES, J.B L., J.:

    Facts:

    Plaintiff Walter Lutz (Lutz), acting as Judicial Administrator of the Intestate Estate
    of one Antonio Jayme Ledesma, is seeking 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
    Commonwealth Act No. 567 (CA 567) or the Sugar Adjustment Act. Section 3 levies on
    the owners or persons in control of lands devoted to the cultivation of sugar cane taxes
    that are equivalent to the difference between the money value of the rental and the
    amount representing 12 per centum of the assessed value of such land. Lutz alleged that
    such taxes are unconstitutional and void, being levied for the the aid and support of the
    sugar industry exclusively. He further alleged that such industry does not belong under
    the realm of public purpose hence taxes may not be constitutionally levied. The action
    was dismissed by the Court of First Instance. Lutz appealed directly to this Court as
    provided for in Section 17 of the Judiciary Act.

    Issue: Whether or not the taxes being levied, as provided for in CA 567, is a pure
    exercise of the taxing power and is thereby constitutional.

    Ruling:

    YES. The taxes imposed are constitutional for they are products of the exercise of
    the government’s taxing power.

    The taxes being levied are for a regulatory purpose - to provide means for the
    rehabilitation and stabilization of the threatened sugar industry. The Court has taken
    notice that the sugar industry is one of the great industries of the nation. Sugar occupies
    the lead position among other products that are being exported. The sugar industry is a
    great source of the state’s wealth. The importance of the sugar industry truly compels
    the Government to take consideration of its promotion, protection, and advancement,
    further redounding greatly to the general welfare. Hence, the legislature, in enacting CA
    567, was competent for demanding the sugar industry be stabilized.

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