CA rules vs Benguet town’s aerial wealth fee

MANILA, Philippines - The Court of Appeals (CA) has reversed the decision of the regional trial court (RTC) of La Trinidad, Benguet and granted the appeal sought by broadcast company GMA Network (GMA) to nullify the imposition of taxes on its use of municipal aerial wealth.

In its decision dated June 18 and penned by Associate Justice Amelita Tolentino, the CA granted GMA Network’s petition for declaratory relief from Article 6L of the 2005 Revised Revenue Code of La Trinidad town, which imposes an annual aerial fee of P70,000 for the operation of GMA’s antenna tower.

La Trinidad town, according to the appellate court, cannot impose a fee for the use of aerial wealth because this was paid with the National Telecommunications Commission (NTC).

It said aerial wealth “belongs not only to the respondents-appellees but to the entire Philippines,” and that its imposition of an aerial wealth fee encroaches on NTC’s regulatory powers.

The CA agreed with GMA’s argument that, under Article XII of the Constitution, air space is not a property of the state, thus the municipal government and council of La Trinidad have no proprietary right above the town’s territory.