KM Corporation, doing business in the City of Kalookan, has been a distributor and retailer of clothing and household materials. It has been paying the City of Kalookan local taxes based on Secs. 15 (Tax on Wholesalers, Distributors or Dealers) and 17 (Tax on Retailers) of the Revenue Code of Kalookan City (Code). Subsequently, the Sangguniang Panglungsod enacted an ordinance amending the Code by inserting Sec. 21 which imposes a tax on “Businesses Subject to Excise, Value-Added and Percentage Taxes under the NIRC,” at the rate of 50% of 1% per annum on the gross sales and receipts on persons “who sell goods and services in the course of trade or business.” KM Corporation paid the taxes due under Sec. 21 under protest, claiming that (a) local government units could not impose a tax on businesses already taxed under the NIRC and (b) this would amount to double taxation, since its business was already taxed under Secs. 15 and 17 of the Code.

Does this amount to double taxation? (2018 BAR)