Lutz vs. Araneta, 98 Phil. 148 [Case Digest]

 

Lutz vs. Araneta,

98 Phil. 148

Facts:

            The constitutionality of Commonwealth Act 567 otherwise known as the Sugar Adjustment Act was questioned as to the legality of the taxes imposed in the said law. The plaintiff argued that Commonwealth Act No. 567 is a pure exercise of the taxing power. Analysis of the Act, and particularly of section 6, will show that the tax is levied with a regulatory purpose, to provide means for the rehabilitation and stabilization of the threatened sugar industry.

 

Issue:

            Whether or not CA 567 in Section 6 thereof which provides for regulatory purpose is unconstitutional.

 

Held:

            No.

 

Ratio:

            The legislative discretion must be allowed full play, subject only to the test of reasonableness; and it is not contended that the means provided in section 6 of the law bear no relation to the objective pursued or are oppressive in character. If objective and methods are alike constitutionally valid, no reason is seen why the state may not be levy taxes to raise funds for their prosecution and attainment. Taxation may be made the implement of the state’s police power.