The Court of Tax Appeals (CTA) has upheld the power of the Davao City government to impose various fees in the slaughter of animals for human consumption.
The court's Special Third Division rejected the petition of San Miguel Foods, Inc. which operates two dressing plants in Davao City, to nullify the collection of ante mortem and post mortem fees, as it was already subject to mayor's permit and permit to slaughter.
The subsidiary of the giant food conglomerate based in Pasig City elevated the case to the CTA after the Davao Regional Trial Court resolved the case in favor of the local government.
The tax court said it has no jurisdiction over the case as the collection of various fees are specified under Davao City ordinance based on the provisions of the Local Government Code, Executive Order No. 137 and Republic Act No.9296.
The 22-page decision said there was no double taxation when Davao City decided to collect additional fees for ante-mortem and post mortem.
It said permit fee to slaughter is collected to ensure humane treatment in the killing of animals, whereas ante and post mortem fees are inspection charges for the safe consumption of the slaughtered animals.
It added that the imposition of regulatory fees are not taxation, though they increase local government income, but an exercise of police powers.
San Miguel Foods paid the fees in protest amounting to P338,000 for the year 2017 and 2018 to be allowed to continue its operations in Davao City.