The High Court, in its ruling, says establishments within the economic zone are not exempt from paying the mayor's permit.
BAGUIO CITY, Philippines – The Supreme Court has ruled that only businesses with the John Hay Special Economic Zone in Baguio City registered under the Philippine Economic Zone Authority are covered by duty and tax-free privileges.
The high tribunal affirmed the ruling of the Baguio City Regional Trial Court that dismissed the petition for declaratory relief with a prayer for a writ of preliminary of injunction against the Baguio City local government. The petition was filed by the Bases Conversion Development Authority and the JHSEZ on March 12, 2010.
“No statute authorizes petitioners to issue permits or regulate businesses inside the John Hay Special Economic Zone. Neither can they invoke the powers granted only to the Philippine Economic Zone Authority. Without an express grant by law, respondent’s police power prevails,” the tribunal said.The case stemmed from Administrative Order No. 102, series of 2009 that created the John Hay Special Economic Zone Task Force to implement City Tax Ordinance No. 2000-001.
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