TIMED TASK

Republic Act No. 14344 imposes an excise tax on internet services. The tax is imposed by the Congress to (1) defer the rising costs of internet regulation, (2) limit early childhood internet access, which according to the Department of Health, is detrimental to a child's psychological development, and (3) to cover for lost revenues on unregulated online transactions. Internet service providers are assailing the constitutionality of Republic Act No. 14090 On the first ground, internet service providers are stating that to defer the rising cost of internet regulation and to limit early childhood internet access does not constitute a legitimate purpose to use the power of taxation considering that taxes are used to regulate, rather than to raise revenues. Rule on the first ground. The first ground is unmeritorious. In accordance with the benefits received theory, taxpayers are obligated to pay taxes for benefiting from internet transactions. The first ground is meritorious. Regulation is the proper object of police power and not of taxation. The first ground is meritorious. Pursuant to the lifeblood doctrine, taxes are intended to be used by the government to defray its expenses. The first ground is unmeritorious. Taxation may be used as an implement of police power pursuant to the Marshall Doctrine