Philippine Match Co. Vs. Cebu CityFacts-The case is about the legality of tax collected by Cebu City on Philippine Match Co., Ltd. regarding their sales of matches stored in Cebu City but delivered outside of it.-On March 10,1960, Ordinance No. 279 was approved by the mayor and the provincial board.-This ordinance imposed a quarterly tax on gross sales or receipts of merchants, dealers, importers and manufacturers of any commodity doing business in Cebu City.-Tax if 1% of gross sales, receipts or value of commodities sold, bartered, exchanged or manufactured in the city in excess of P2000.00/quarter.-Section 9 of Ordinance No. 279 said that all deliveries of goods or commodities stored or sold in City of Cebu are taxable.-This can be interpreted as all sales of matches outside of the city are taxable as long as they are stored in Cebu City.-Philippine Match Co. Ltd. is engaged in the manufacture of matches. Its principal office is in Manila. It ships matches from Manila to Cebu City for distribution in the Visayas-Mindanao region.-The company assails legality of tax collected from:1. Sales of matches booked and paid for in Cebu City but shipped outside2. Transfer of matches to newsmen assigned to different agencies outside of the city.3. Shipments of matches to provincial customers pursuant to sales men's instructions-The company paid P12844.61 tax under protest. This is the 1% sales tax of the above-mentioned classes of deliveries.-The company sought the refund in its April 15, 1961 letter to the city treasurer. It invoked Shell Company v. Municipaliy of Sipocot, Camarines Sur. Sales of oil and petroleum products in this case outside Sipocot are not subject to tax in that municipality.-The city treasurer denied the request.-August 12, 1963, company filed complaint praying that the ordinance be void.-RTC ruled that:1. Tax on sales of matches are booked and paid in Cebu City although shipped outside should push thru because delivery to the carrier in the city is deemed to be delivered to customers outside of the city.2. However, RTC invalidated tax on transfers of matches to salesmen assigned to different agencies outside of the city. This totaled to P8923.55. RTC ordered city treasurer to refund this amount.-The city did not appeal but the company appealed on the 1st part of the decision.IssueWhether or not the City of Cebu can tax sales of matches which were perfected and paid for in Cebu City but delivered outside of the City.Held1. Yes. Those matches can be regarded as sold in the city because they were delivered to the carrier in Cebu City. Generally, delivery to carrier is delivery to buyer (Article 1523, CC).2. Under the Revised Charter of Cebu City, it's municipal board is empowered to provide for the levy and collection of taxes for general and purposes in accordance with the law.3. Taxing power is also validly delegated to cities and municipalities in Local Autonomy Act RA 2264.4. Prohibition against percentage taxes refers to municipalities and municipal districts, not to chartered cities like Cebu City.5. The city treasurer also acted within the scoped of his authority and in consonance with his bonafide interpretation of the tax ordinance. Therefore, RTC did not err in not ordering the acting city treasurer to pay damages and attorney fees. This is also stated under Sec.357 of the Revised Manual of Instruction to treasurers and by the reminder of the Secretary of Finance.RulingRTC judgment is affirmed. No costs.