1. Fundamental Principles

General Principles

• Taxation shall be Uniform in each local government unit;
• Taxes, fees, charges, and other impositions shall
• Be Equitable and based as far as practicable on the taxpayer's ability to pay;
• Be levied and collected only for Public purposes;
• Not be unJust, excessive, oppressive, or confiscatory;
• Not be contrary to Law, public policy, national economic policy, or in the restraint of trade;
• The collection of local taxes, fees, charges and other impositions shall in no case be let to any private person;
• The revenue collected pursuant to the provisions of this Code shall inure solely to the benefit of, and be subject to the disposition by, the local government unit levying the tax, fee, charge or other imposition unless otherwise specifically provided herein; and,
• Each local government unit shall, as far as practicable, evolve a Progressive system of taxation. (LGC, Sec. 130)¹

Equality and uniformity in local taxation means that all taxable articles or kinds of property of the same class shall be taxed at the same rate within the territorial jurisdiction of the taxing authority or local government unit. In fine, uniformity is required only within the geographical limits of the taxing authority. (Punsalan v. Municipal Board of the City of Manila, G.R. No. L-4817, 26 May 1954)²