August 12, 1991
Ponente: Bidin, J.
FACTS
The town of Lugait, Misamis Oriental sought to collect taxes against Floro Cement, a manufacturer, seller, and exporter of cement.
The assessment was based on Ordinance No. 5. The company refused to pay, claiming that the power of LGUs to tax mineral products was withdrawn by P.D. 463 and that it was granted a tax exemption based on the same law.
RULING
The SC ruled in favor of the municipality of Lugait, Misamis Oriental.
The SC held that since cement is a manufactured product, not a mineral product, the power to tax such was not withdrawn by P.D. 463.
Moreover, the company failed to definitively show its entitlement to a tax exemption, the same being strictly construed against the taxpayer.
SC noted that he who claims an exemption must be able to point out some provision of law creating the right; it cannot be allowed to exist upon a mere vague implication or inference; it must be shown indubitably to exist, for every presumption is against it, and a well-founded doubt is fatal to the claim.
