GENERAL PRINCIPLES OF TAXATION
Pepsi Cola v. Municipality of Tanauan: Legislati e powers may be delegated to local governments in respect of matters of local concern. This is sanctioned by immemorial practice. By necessary implication, the legislative power to create political corporations for purposes of local self-government carries with it the power to confer on such local governmental agencies the power to ta .
i. It is the power by which the sovereign raises revenue to defray the expenses of the government. It is a way of apportioning the cost of government among those who in some measure are privileged to enjoy its benefits and must bear its burden.
Quezon City v. ABS-CBN: Mu i ipal Co po atio has a general power to levy taxes and otherwise create sources of revenue. They no longer have to wait for the statutory grant for these powers. The taxing power of the local government is limited in the sense that Congress can enact legislation granting exemptions. b. Nature of the Power of Taxation
i. The power to tax is an attribute of sovereignty. It is inherent in the State. As an incident of sovereignty, the power to tax has ee des i ed as u li ited i its a ge, a k o ledgi g i its very nature no limits, so that security against its abuse is to be found only in the responsibility of the legislature which imposes the tax on the constituency who are to pay it. (MCIAA v. Marcos)
ii. Taxes are the lifeblood of the government. Without taxes, the government can neither exist nor endure. The exercise of taxing power derives its source from the very existence of the State whose social contract with its citizens obliges it to promote public interest and the common good. (CREBA v. Romulo) iii. The power of taxation is an essential and inherent attribute of sovereignty, belonging as a matter of right to every independent government, without being expressly conferred by the