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    3.1. Hijo Plantation V Central Bank - 1998 - Digest

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    Kate Garo
    1) The case involved a stabilization tax imposed by the Central Bank on banana exports through a Resolution. 2) A law called RA 6125 imposed stabilization taxes on certain exports that exceeded $5 million annually to stabilize the peso-dollar exchange rate. 3) Banana exports exceeded $5 million in 1971, bringing it under the law, but the Central Bank resolution imposed taxes retroactively for the first half of 1971, beyond what the law allowed.

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    3.1. Hijo Plantation V Central Bank - 1998 - Digest

    Uploaded by

    Kate Garo
    64 views1 page
    1) The case involved a stabilization tax imposed by the Central Bank on banana exports through a Resolution. 2) A law called RA 6125 imposed stabilization taxes on certain exports that exceeded $5 million annually to stabilize the peso-dollar exchange rate. 3) Banana exports exceeded $5 million in 1971, bringing it under the law, but the Central Bank resolution imposed taxes retroactively for the first half of 1971, beyond what the law allowed.

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    3.1. Hijo Plantation v Central Bank_1998_digest

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    1) The case involved a stabilization tax imposed by the Central Bank on banana exports through a Resolution. 2) A law called RA 6125 imposed stabilization taxes on certain exports that exceeded $5 million annually to stabilize the peso-dollar exchange rate. 3) Banana exports exceeded $5 million in 1971, bringing it under the law, but the Central Bank resolution imposed taxes retroactively for the first half of 1971, beyond what the law allowed.

    Copyright:

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

    3.1. Hijo Plantation V Central Bank - 1998 - Digest

    Uploaded by

    Kate Garo
    1) The case involved a stabilization tax imposed by the Central Bank on banana exports through a Resolution. 2) A law called RA 6125 imposed stabilization taxes on certain exports that exceeded $5 million annually to stabilize the peso-dollar exchange rate. 3) Banana exports exceeded $5 million in 1971, bringing it under the law, but the Central Bank resolution imposed taxes retroactively for the first half of 1971, beyond what the law allowed.

    Copyright:

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

    HIJO PLANTATION v CENTRAL BANK

    G.R. No. L-34526 August 9, 1988

    FACTS

    Because of the difficulty in determining the peso-dollar exchange rate, Congress passed RA 6125 which imposed a
    stabilization tax on exports, which gradually decreases over four years. The law enumerated covered products such
    as logs, copra, centrifugal sugar and copper. Under Section 1, as a last provision, ―

    Any export product the aggregate annual F.O.B. value of which shall exceed five million United States dollars in any
    one calendar year during the effectivity of this Act shall likewise be subject to the rates of tax in force during the
    fiscal years following its reaching the said aggregate value.

    During the first 9 months of 1971, the total banana export exceeded the USD5m limit in RA 6125. Thus, the Central
    Bank issued a Monetary Board Resolution imposing a stabilization tax on exports of bananas.

    The resolution provided a rate of 6% for the first half of 1971 and 4% from July 1971 to last until June 1972.

    The petitioner corporations were all engaged in production and exportation of bananas who paid the stabilization
    taxes in protest and now assail the said resolution. Central Bank contends that the stabilization tax should be
    imposed starting July 1971, the fiscal year following the calendar year where the industry reached USD 5m limit.

    ISSUE
    WON the Central Bank exceeded its powers in issuing the said Resolution

    HELD

    YES. There is no question that the export of bananas already reached the limit, bringing it under the coverage of RA
    6125, and thus making the petitioners liable. However, the Central Bank, in issuing the resolution, acted in
    overzealous desire to carry out the provisions of RA 6125. It acted beyond its authority under the said law. Thus,
    where there is a discrepancy between the basic law and the regulation issued to implement the said law, the basic
    law prevails and the regulation cannot go beyond the terms and provisions of the basic law.

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