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 CONSTITUTION

THE 1897 CONSTITUTION OF BIAK-NA-BATO

It was a provisionary Constitution of the Philippine Republic during the Philippine Revolution,
and was promulgated by the Philippine Revolutionary Government on November 1, 1897. This
Constitution was borrowed from Cuba and written by Isabelo Artacho and Felix Ferrer in Spanish.
Emilio Aguinaldo established the Biak-na-Bato Republic on his headquarters in Biak-na-Bato in
Bulacan province. It also outlined certain basic human rights, such as freedom of religion, freedom of
the press, and the right to education. Emilio Aguinaldo and Mariano Triad were elected Supreme
Council president and vice president, respectively. The news immediately spread throughout the
country, and the revolutionaries were once more in high spirits.

The organs of the government under the Constitution

1. The Supreme Council (vested with the power of the Republic)
President: Emilio Aguinaldo
Vice President: Mariano Triad
Sec. of the Interior: Isabelo Artacho
Sec. of Foreign Affairs: Antonio Montenegro
Sec. of the Treasury: Baldomero Aguinaldo
Sec. of War: Emiliano Riego de Dios
 2. Consejo Supremo de Gracia Y Justicia (Supreme Council of Grace and Justice)
They were given the authority to make decisions and affirm or disprove the sentences rendered
by other courts and dictate rules for the administration of justice.
3. Asembleas de Representantes (Assembly of Representatives)
They were to be convened after the revolution to create a new institution and to elect a new
Council of Government and Representatives of the people.

THE 1899 MALOLOS CONSTITUTION

A revolution was launched against Spain and the revolutionaries declared Philippine
independence in Kawit, Cavite on June 12, 1898. What became known as the Malolos Congress
was convened on September 15, 1898 and the first Philippine Constitution, called the Malolos
Constitution, was approved on January 20, 1899, ushering what is called the First Philippine
Republic. In the Spanish-American War of 1898, the revolutionaries sided with the Americans,
hoping that, with the defeat of Spain, independence would be granted by the US to the Philippines.
This, however, did not happen. After Spain sold the islands to the United States in the Treaty of
Paris, the US immediately proceeded to brutally suppress the Philippine independence movement.
This is also known as the ―Political Constitution of 1899‖ and the historical highlights are as
follows:
� It was promulgated by Aguinaldo on January 21, 1899 and was written in Spanish by Felipe
Calderon.
� It is consists of 39 articles, divided into 14 titles, with 8 articles of transitory provisions, and
a final additional article and was patterned after the Spanish Constitution.
� The recognition of freedom and equality of all beliefs, as well as the separation of Church
and State was declared.
� It also declares that the form of government shall exercise three distinct powers:

Government

Executive Power - vested

in the president, and
elected by a constituent
assembly of the Assembly
of Representatives and Legislative Power –
vested to a unicameral
body called the Assembly
of Representatives

Judicial Power
THE 1935 COMMONWEALTH CONSTITUTION
The 1935 Constitution, which featured a political system virtually identical to the American
one, became operative. The system called for a President to be elected at large for a 4-year term
(subject to one re-election), a bicameral Congress, and an independent Judiciary.
During the American colonial period two acts of the US Congress were passed that may
be considered to have potentials of constitutionality:
Organic Act of 1902 Philippine Autonomy Act of 1916
� provided for the creation of a
� referred to as ―Jones Law‖ which
popularly elected Philippine
modified the structure of the Philippine
Assembly. government by removing the
� specified that legislative power Philippine Commission, replacing it
would be vested in a bicameral with a Senate (upper house) and its
legislature composed of the members elected by the Filipino
Philippine Commission as the voters, the first truly elected national
upper house and the Philippine legislature.
Assembly as lower house. � It also declared the purpose of the
� included a bill of rights for Filipinos U.S. to end their sovereignty over the
and the appointment of two non- Philippines and grant Philippine
voting Filipino Resident independence soon as a stable
Commissioners of the Philippines government can be established.
as representative to the U.S.
House of Representatives.

In 1932, the US Congress passed the Hare-Hawes-Cutting Act with the promise of
granting Filipinos’ independence through the efforts of Sergio Osmena and Manuel Roxas.
Unfortunately, the bill was opposed by then Senate President Manuel L. Quezon and thus, rejected
by the Philippine Senate.
THE 1973 PHILIPPINE CONSTITUTION

UNDER THE MARCOS REGIME

Ferdinand E. Marcos was elected

president, and in 1967, Philippine
Congress passed a resolution calling for
a constitutional convention to change the
1935 Constitution. Marcos won the re-election in 1969 and
the election of delegates to the
constitutional convention were held on
November 20a, 1970, and it was formally
began on June 1, 1971.
Martial Law was declared. Marcos cited a
growing communist insurgency as reason
for the Martial Law, which was provided
for in the 1935 Constitution.

With Marcos as dictator, the direction of the

convention turned, manipulating the
document to be able to hold on to power for
as long as he could.

In 1965 Marcos, who was a prominent member of the Liberal Party founded by Roxas, broke
with it after failing to get his party’s nomination for president. He then ran as the Nationalist
Party candidate for president against the Liberal president, Diosdado Macapagal. The campaign was
expensive and bitter. Marcos won and was inaugurated as president on December 30, 1965. In 1969
he was reelected, becoming the first Philippine president to serve a second term. During his first term
he had made progress in agriculture, industry, and education. Yet his administration was troubled by
increasing student demonstrations and violent urban guerrilla activities.
On September 21, 1972, Marcos imposed martial law on the Philippines. Holding that
communist and subversive forces had precipitated the crisis, he acted swiftly; opposition politicians
were jailed, and the armed forces became an arm of the regime. Opposed by political leaders—
notably Benigno Aquino, Jr., who was jailed and held in detention for almost eight years—Marcos
was also criticized by church leaders and others. In the provinces Maoist communists (New People’s
Army) and Muslim separatists (notably of the Moro National Liberation Front) undertook guerrilla
activities intended to bring down the central government. Under martial law the president assumed
extraordinary powers, including the ability to suspend the writ of habeas corpus. Marcos announced
the end of martial law in January 1981, but he continued to rule in an authoritarian fashion under
various constitutional formats. He won election to the newly created post of president against token
opposition in June 1981.

On November 29, 1972, the convention approved its proposed constitution. Here are some
of the proposed amendments of the Constitution:
� The constitution was supposed to introduce a parliamentary-style government, where
legislative power was vested in a unicameral National Assembly, with members being
elected to six-year term.
� The president was to be elected as the symbolic and ceremonial head of state chosen from
the members of the National Assembly. He would serve a six-year term and could be re-
elected to an unlimited number of terms.
� Executive power was relegated to the Prime Minister, who was also the head of government
and Commander-in-Chief of the Armed Forces who was also to be elected from the National
Assembly.
President Marcos issued then a Presidential Decree No. 73 setting the date of the plebiscite to
ratify or reject the proposed constitution on November 30, 1973. But, it was postponed and instead
of a plebiscite, Citizen Assemblies were held from January 10-15, 1973. On January 17, 1973,
Marcos issued a proclamation announcing that the proposed constitution had been ratified by an
overwhelming vote of the members of the highly irregular Citizen Assemblies. Thus, the constitution
was still amended several times:
� They allow the continuation of Martial Law.
� The president become the Prime Minister and continue to exercise legislative powers until
Martial Law was lifted and authorized the President to legislate on his own on an emergency
basis.
� The retirement age of members of the judiciary was extended to 70 years.
Obviously, given all the amendments, the 1973 Constitution was simply a way of the Marcos to
keep powers, abolish the Senate, and functioned as an authoritarian government with all the powers
concentrated to him.
Marcos’s later years in power were marred by rampant government corruption, economic
stagnation, the steady widening of economic inequalities between the rich and the poor, and the
steady growth of a communist guerrilla insurgency active in the rural areas of the Philippines’
innumerable islands.
THE 1987 PHILIPPINE CONSTITUTION

The 1980’s turbulent state caused the assassination of Benigno Aquino Jr., at Manila
International Airport in August 1983. Thus, it triggered the EDSA People Power Revolution of 1986.
The Marcos family then fled into exile and his opponent in the snap elections, Corazon Aquino was
installed as the new Philippine president on February 25, 1986.

Revert to the
1935
Constitution

President
Corazon
Aquino had
three
options
Retain the 1973 Start anew and
Constitution and break from the
be granted the “vestiges of a
power to make disgraced
reforms dictatorship"

The President decided to draft a new constitution which will ―truly reflective of the aspirations
and ideals of the Filipino people.‖ Thus, in 1986, a constitutional convention was formed, with 48
members appointed by President Aquino coming from varied backgrounds and representations. The
1986 ConCom was composed of 48 individuals who represented all sectors in the country, including,
among others, Bishop Teodoro Bacani, former Supreme Court chief justice Roberto Concepcion,
former labor minister (and eventually senator and foreign affairs secretary) Blas Ople, Ateneo De
Manila University president Father Joaquin Bernas SJ, and University of the Philippines Student
Council Chairperson (now Commission on Human Rights chair) Chito Gascon.
The convention then drew up a permanent constitution, they restore the setup abolished by
Marcos in 1972, but added new ways keeping the president in check.
The 1987 Constitution starts with a preamble and eighteen self-contained articles. It recognized
the country as a ―democratic republican State‖ which means ―sovereignty resides in the people and
all government authority emanates from them.‖ It shares governmental powers among the executive,
legislative, and judicial branches of the government. The Constitution also established three
independent Constitutional Commissions: Civil Service Commission, Commission on Elections, and
Commission on Audit.
Legislative Department
The Legislative Branch enacts legislation, confirms or rejects Presidential appointments, and
has the authority to declare war. This branch includes Congress (the Senate and House of
Representatives) and several agencies that provide support services to Congress.

� Senate (upper house) – composed of twenty-four Senators who shall be elected at large by
the qualified voters of the Philippines, as may be provided by law.
� House of Representatives (lower house) – shall be composed of not more than two hundred
and fifty members, unless otherwise fixed by law, who shall be elected from legislative
districts apportioned among the provinces, cities, and the Metropolitan Manila area in
accordance with the number of their respective inhabitants, and on the basis of a uniform
and progressive ratio, and those who, as provided by law, shall be elected through a party -
list system of registered national, regional, and sectoral parties or organizations.

The party-list representatives shall constitute twenty per cent of the total number of
representatives including those under the party list. For three consecutive terms after the ratification
of this Constitution, one-half of the seats allocated to party-list representatives shall be filled, as
provided by law, by selection or election from the labor, peasant, urban poor, indigenous cultural
communities, women, youth, and such other sectors as may be provided by law, except the religious
sector.

Executive Department

The executive branch carries out and enforces laws. It includes the President, Vice
President, the Cabinet, executive departments, independent agencies, and other boards,
commissions, and committees.
Key roles of the executive branch include:
 � President – The President leads the country. He/she is the head of state, leader of the
national government, and Commander in Chief of all armed forces of the Philippines. The
President serves a six-year term and cannot be re-elected.
� Vice President – The Vice President supports the President. If the President is unable to
serve, the Vice President becomes President. He/she serves a six-year term.
� The Cabinet – Cabinet members serve as advisors to the President. They include the Vice
President and the heads of executive departments. Cabinet members are nominated by the
President and must be confirmed by the Commission of Appointments.
Judicial Department
The judicial branch interprets the meaning of laws, applies laws to individual cases, and
decides if laws violate the Constitution. The judicial power shall be vested in one Supreme Court and
in such lower courts as may be established by law. Judicial power includes the duty of the courts of
justice to settle actual controversies involving rights which are legally demandable and enf orceable,
and to determine whether or not there has been a grave abuse of discretion amounting to lack or
excess of jurisdiction on the part of any branch or instrumentality of the Government. The judicial
branch interprets the meaning of laws, applies laws to individual cases, and decides if laws violate
the Constitution.

Each branch of government can change acts of the other branches as follows:

� The President can veto laws passed by Congress.

� Congress confirms or rejects the President's appointments and can remove the President
from office in exceptional circumstances.
The Justices of the Supreme Court, who can overturn unconstitutional laws, are appointed
by the President and confirmed by the Senate.

TOPIC 2: POLICIES ON AGRARIAN REFORM

Agrarian Reform

Essentially known as the rectification of the whole system of agriculture

and an important aspect of the Philippine economy because nearly half
of the population is employed in the agricultural sector, and most
citizens live in rural areas.

It is centered on the relationship between production and the

distribution of land among farmers.

It is focused on the political and economic class character of the

relations of production and distribution in farming and related
enterprises
• PRE-COLONIAL PERIOD
“This land is Ours God gave this land to us”
Before the Spaniards came to the Philippines,
Filipinos lived in villages or barangays ruled by
chiefs or datus. The datus comprised the
nobility. Then came the maharlikas (freemen),
followed by the aliping mamamahay (serfs) and
aliping saguiguilid (slaves).
However, despite the existence of different
classes in the social structure, practically
everyone had access to the fruits of the soil.
Money was unknown, and rice served as the
medium of exchange.

• SPANISH PERIOD
“United we stand, divided we fall”
When the Spaniards came to the Philippines,
the concept of encomienda (Royal Land Grants)
was introduced. This system grants that
Encomienderos must defend his encomienda
from external attack, maintain peace and order
within, and support the missionaries. In turn,
the encomiendero acquired the right to collect
tribute from the indios (native).
The system, however, degenerated into abuse
of power by the encomienderos The tribute
soon became land rents to a few powerful
landlords. And the natives who once cultivated
the lands in freedom were transformed into
mere share tenants.

• First Philippine Republic

“The yoke has finally broken”
When the First Philippine Republic was
established in 1899, Gen. Emilio Aguinaldo
declared in the Malolos Constitution his
intention to confiscate large estates,
especially the so-called Friar lands.
However, as the Republic was short-lived,
Aguinaldo’s plan was never implemented.
 • American Period
“Long live America”
Significant legislation enacted during the
American Period:
Philippine Bill of 1902 – Set the ceilings on
the hectarage of private individuals and
corporations may acquire: 16 has. for private
individuals and 1,024 has. for corporations.
Land Registration Act of 1902 (Act No. 496) –
Provided for a comprehensive registration of
land titles under the Torrens system.
Public Land Act of 1903 – introduced the
homestead system in the Philippines.
Tenancy Act of 1933 (Act No. 4054 and 4113)
– regulated relationships between
landowners and tenants of rice (50-50
sharing) and sugar cane lands.
The Torrens system, which the Americans
instituted for the registration of lands, did
not solve the problem completely. Either
they were not aware of the law or if they did,
they could not pay the survey cost and other
fees required in applying for a Torrens title.

• Commonwealth Period
“Government for the Filipinos”
President Manuel L. Quezon espoused the
"Social Justice" program to arrest the
increasing social unrest in Central Luzon.
Significant legislation enacted during
Commonwealth Period:
1935 Constitution – "The promotion of
social justice to ensure the well-being and
economic security of all people should be
the concern of the State"
Commonwealth Act No. 178 (An
Amendment to Rice Tenancy Act No.
4045), Nov. 13, 1936 – Provided for
certain controls in the landlord-tenant
relationships
• National Rice and Corn Corporation
(NARIC), 1936 – Established the price of
rice and corn thereby help the poor
tenants as well as consumers.
Commonwealth Act. No. 461, 1937 –
Specified reasons for the dismissal of
tenants and only with the approval of the
Tenancy Division of the Department of
Justice.
Rural Program Administration, created
March 2, 1939 – Provided the purchase
and lease of haciendas and their sale and
lease to the tenants.
Commonwealth Act No. 441 enacted on
June 3, 1939 – Created the National
Settlement Administration with a capital
stock of P20,000,000.

• Japanese Occupation
“The Era of Hukbalahap”
The Second World War II started in
Europe in 1939 and in the Pacific in 1941.
Hukbalahap controlled whole areas of
Central Luzon; landlords who supported
the Japanese lost their lands to peasants
while those who supported the Huks
earned fixed rentals in favor of the
tenants.
Unfortunately, the end of war also
signaled the end of gains acquired by the
peasants.
Upon the arrival of the Japanese in the
Philippines in 1942, peasants and workers
organizations grew strength. Many
peasants took up arms and identified
themselves with the anti-Japanese group,
the HUKBALAHAP (Hukbo ng Bayan Laban
sa Hapon).
Philippine Republic

“The New Republic”

After the establishment of the Philippine Independence in 1946, the problems of land tenure
remained. These became worst in certain areas. Thus the Congress of the Philippines revised the
tenancy law.

• President Manuel A. Roxas (1946-1948)

Republic Act No. 34 -- Established the 70-30 sharing
arrangements and regulating share-tenancy
contracts.
Republic Act No. 55 -- Provided for a more effective
safeguard against arbitrary ejectment of tenants.

• Elpidio R. Quirino (1948-1953)

Executive Order No. 355 issued on October 23, 1950 --
Replaced the National Land Settlement Administration
with Land Settlement Development Corporation
(LASEDECO) which takes over the responsibilities of the
Agricultural Machinery Equipment Corporation and the
Rice and Corn Production Administration.

• Ramon Magsaysay (1953-1957) :

Republic Act No. 1160 of 1954 -- Abolished the
LASEDECO and established the National Resettlement and
Rehabilitation Administration (NARRA) to resettle dissidents
and landless farmers. It was particularly aimed at rebel
returnees providing home lots and farmlands in Palawan
and Mindanao.
Republic Act No. 1199 (Agricultural Tenancy Act of 1954) --
governed the relationship between landowners and tenant
farmers by organizing share-tenancy and leasehold system.
The law provided the security of tenure of tenants. It also
created the Court of Agrarian Relations.
Republic Act No. 1400 (Land Reform Act of 1955) --
Created the Land Tenure Administration (LTA) which was
responsible for the acquisition and distribution of large
tenanted rice and corn lands over 200 hectares for
individuals and 600 hectares for corporations.
Republic Act No. 821 (Creation of Agricultural Credit
Cooperative Financing Administration) -- Provided small
farmers and share tenants loans with low interest rates of
six to eight percent.
• President Corazon C. Aquino (1986-1992)
The Constitution ratified by the Filipino people during
the administration of President Corazon C. Aquino
provides under Section 21 under Article II that ―The
State shall promote comprehensive rural
development and agrarian reform.‖
On June 10, 1988, former President Corazon C.
Aquino signed into law Republic Act No. 6657 or
otherwise known as the Comprehensive Agrarian
Reform Law (CARL). The law became effective on
June 15, 1988.
Subsequently, four Presidential issuances were
released in July 1987 after 48 nationwide
consultations before the actual law was enacted.
President Corazon C. Aquino enacted the following
laws:
Executive Order No. 228, July 16, 1987 – Declared
full ownership to qualified farmer-beneficiaries
covered by PD 27. It also determined the value
remaining unvalued rice and corn lands subject of
PD 27 and provided for the manner of payment by
the FBs and mode of compensation to landowners.
Executive Order No. 229, July 22, 1987 – Provided
mechanism for the implementation of the
Comprehensive Agrarian Reform Program (CARP).
Proclamation No. 131, July 22, 1987 – Instituted the
CARP as a major program of the government. It
provided for a special fund known as the Agrarian
Reform Fund (ARF), with an initial amount of Php50
billion to cover the estimated cost of the program
from 1987-1992.
• Executive Order No. 129-A, July 26, 1987 –
streamlined and expanded the power and operations
of the DAR.
• Republic Act No. 6657, June 10, 1988
(Comprehensive Agrarian Reform Law) – An act
which became effective June 15, 1988 and instituted
a comprehensive agrarian reform program to
promote social justice and industrialization providing
the mechanism for its implementation and for other
purposes. This law is still the one being implemented
at present.
• Executive Order No. 405, June 14, 1990 – Vested in
the Land Bank of the Philippines the responsibility to
determine land valuation and compensation for all
lands covered by CARP.
• Executive Order No. 407, June 14, 1990 –
Accelerated the acquisition and distribution of
agricultural lands, pasture lands, fishponds, agro-
forestry lands and other lands of the public domain
suitable for agriculture.
• President Fidel V. Ramos (1992-1998)
When President Fidel V. Ramos formally took over in
1992, his administration came face to face with
publics who have lost confidence in the agrarian
reform program. His administration committed to the
vision ―Fairer, faster and more meaningful
implementation of the Agrarian Reform Program.
President Fidel V. Ramos enacted the following
laws:
Republic Act No. 7881, 1995 – Amended certain
provisions of RA 6657 and exempted fishponds and
prawns from the coverage of CARP.
Republic Act No. 7905, 1995 – Strengthened the
implementation of the CARP.
Executive Order No. 363, 1997 – Limits the type of
lands that may be converted by setting conditions
under which limits the type of lands that may be
converted by setting conditions under which specific
categories of agricultural land are either absolutely
non-negotiable for conversion or highly restricted for
conversion.
Republic Act No. 8435, 1997 (Agriculture and
Fisheries Modernization Act AFMA) – Plugged the
legal loopholes in land use conversion.
Republic Act 8532, 1998 (Agrarian Reform Fund Bill)
– Provided an additional Php50 billion for CARP and
extended its implementation for another 10 years.
• President Gloria Macapacal-Arroyo (2000-
2010)
The agrarian reform program under the Arroyo
administration is anchored on the vision “To
make the countryside economically viable for
the Filipino family by building partnership and
promoting social equity and new economic
opportunities towards lasting peace and
sustainable rural development.”
Land Tenure Improvement - DAR will remain
vigorous in implementing land acquisition and
distribution component of CARP. The DAR will
improve land tenure system through land
distribution and leasehold.
Provision of Support Services - CARP not only
involves the distribution of lands but also
included package of support services which
includes: credit assistance, extension services,
irrigation facilities, roads and bridges,
marketing facilities and training and technical
support programs.
Infrastrucre Projects - DAR will transform the
agrarian reform communities (ARCs), an area
focused and integrated delivery of support
services, into rural economic zones that will
help in the creation of job opportunities in the
countryside.
KALAHI ARZone - The KALAHI Agrarian Reform
(KAR) Zones were also launched. These zones
consists of one or more municipalities with
concentration of ARC population to achieve
greater agro-productivity.
Agrarian Justice - To help clear the backlog of
agrarian cases, DAR will hire more paralegal
officers to support undermanned adjudicatory
boards and introduce quota system to compel
adjudicators to work faster on agrarian reform
cases. DAR will respect the rights of both
farmers and landowners.
• President Benigno Aquino III (2010-
2016)
• President Benigno Aquino III vowed
during his 2012 State of the Nation
Address that he would compplete
before the end of his term the
Comprhensive Agrarian Reform
Program (CARP), the ceterpiece
program of the administration of his
mother, President Corazon Aquino.
• The younger Aquino distributed their
family-owned Haciencda Luisita in
Tarlac Apart from the said farm lots,
he also promised to complete the
distribution of privately-owned lands of
productive agricultural estates in the
country that have escaped the
coverage of the program.
• Under his administration, the Agrarian
Reform Community Connectivity and
Economic Support
Services(ARCCESS) project was
created to contribute to the overall
goal of rural poverty reduction
especially in agrarian reform areas.
Agrarian Production Credit Program
(APCP) provided credit support for
crop production to newly organized
and existing agrarian reform
beneficiaries’ organizations (ARBOs)
and farmers’ organizations not
qualified to avail themselves of loans
under the regular credit windows of
banks.
The legal case monitoring system
(LCMS), a web-based legal system for
recording and monitoring various
kinds of agrarian cases at the
provincial, regional and central offices
of the DAR to ensure faster resolution
and close monitoring of agrarian-
related cases, was also launched.
Aside from these initiatives, Aquino
also enacted Executive Order No. 26,
Series of 2011, to mandate the
Department of Agriculture-Department
of Environment and Natural
Resources-Department of Agrarian
Reform Convergence Initiative to
develop a National Greening Program
in cooperation with other government
agencies.
 Taxation is a reality that all the citizens must contend with for the primary
reason that the government raise revenue from the people they govern to be
able to function fully. In exchange for the taxes that people, the government
promises to improve the citizens’ lives through good governance. Taxation
as a government mechanism to raise funds, developed and evolved through
time, annd in the context of the Philippines, we must understand that it cam e
with our colonial experience.

TAXATION is defined in many ways. Commonly heard definitions include:

� It is the process by which the sovereign, through its law making body, races revenues use
to defray expenses of givernment.
� It is a means of government in increasing its revenue under the authority of the law,
purposely used to promote welfare and protection of its citizenry.
� It is the collection of the share of individual and organizational income by a government
under the authority of the law.

Purpose and Significance of Tax

Primary Sources: generates funds or revenues use to defray expenses incureed by the government
in promoting the general welfare of its citizenry. Public expenditure.

Other purposes: to equitably contribute to the wealth of the nation.

TAXATION IN SPANISH PHILIPPINES

� When spaniards came, they started to collect ―tributos‖ (tributes).

� The purpose of it is to develop and improve the islands and to
maintain it as well
� also, the collect tributes is for the government officials salary and
for the expenses of the clergy
� The Filipinos have gotten satisfied with the production of agriculture
� Later on, half of the tribute was paid in cash and the rest with
produce.
� Sixteenth century. Manila-Acapulco trade (The Galleon Trade)
The Spanish government continued trade relations with these
countries and Manila became the Center of Commerce
China, Japan, Maluccas, Siam, India, Cambodia, Borneo
� During the Galleon trade, force labor was a character of spanish colonial taxation and was
required from the Filipinos.
Male Filipino were obligated to serve which results to deaths in seventeenth century. Males
are required to provide 40 days per annum.
� 1884, The payment of tribute was put to a stop because of the ―cedulla‖
� Taxation in the Philippine during spanish colonial period was characterized by a heavy
burden place

TAXATION UNDER THE AMERICANS

� Americans aimed to make the economy self-sufficient by running the

government with the possible sum revenue and create surplus in the
budget.
� From 1898 to 1903, the Americans followed the Spanish system of
taxation with some modifications.
� Later on, the Urbana would be replaced by tax on real state, which
became known as land tax.
� The problem with the tax was that land titling in the rural area was
very disorderly.

TAXATION DURING THE COMMONWEALTH PERIOD

In 1937, the cedula tax was abolished, which prepared to be a
progressive move;
but in 1940, a residence tax was imposed on every citizens aged 18
years old and on every corporation.
In 1939, the Commonwealth drafted the National Internal Revenue
Code, introducing major changes in the new tax system as follows:

1. The normal tax of three percent and the surtax on income was
replaced by a single tax and progressive rate.
2. Personal exemptions were reduced
3. Corporation income tax slightly increased by introducing taxes on
inherited estates or gifts donated in the name of the dead persons.
 4. The culminative sales tax was replaced by a single turnover tax of 10%
on luxuries.
5. Taxes on liquors, cigarettes, forestry products and mining were
increased.
6. Dividends were made taxable.

The introduced tax structure was an improvement of the earlier system introduced by the
Americans, but still remained unequitable. As World War II reached the Philippine shores,
economic activity put to stop and the Philippines bowed to a new administrators, the
Japanese. The expenditure of the Japanese military government grew greatly, and they
issued military notes in order to cover the costs of war.

FISCAL POLICY FROM 1946 TO PRESENT

� Roxas Regime (1946-1948)

-He rejected the advised of the United States in tax collection.
� Quirino Regime (1948-1953)
-The impetus for economic growth came through the implementation of import and exchange
controls that led to import substitution development.
-tax revenue in 1953 increased twofold compared to 1948.
� Magsaysay, Garcia & Macapagal Regime (1953-1965)
-Promised to study the tax structure and policy of the country (through the creation of a Tax
Commission in 1959 means of Republic Act No. 2211)
-The period of post-war republic also saw a rise in corruption
-Indirect taxation still contributed to three quarters of tax revenues and the Omnibus Tax
Law of 1969 did not increase the ratio of income tax to general tax.
� Marcos Regime (1965-1986)
-During the Latter part of Marcos’ years (1981-1985), the tax system was still heavily
dependent on indirect taxes, which made up 70% of total tax collection.
-Taxes grew at an average annual rate of 15% and generated a low tax yield.
� Aquino Regime (1986-1992)
-A major reform in the tax system introduced under the term Aquino was the introduction of
the Value Added Tax (VAT).
-She reformed the tax system through the 1986 Tax Reform Program.
-The VAT law was signed in 1986 and put to effect in 1988
-The tax reform of Aquino administration, both tax and revenue effort rose, increasing from
10.7% to 15.4% in 1992.
� Ramos Regime (1992-1998)
- The Ramos administration ventured into its own tax reform program in 1997 through the
Comprehensive Tax Reform Program, which was implemented to (1) make the tax system
broad-based, simple, and with reasonable tax rates; (2) minimize tax avoidance allowed by
existing flaws and loopholes in the system: (3) encourage payments by increasing tax
exemptions levels, lowering the highest tax rates, simplifying procedure; and (4) rationalize
the grant of tax incentives, which was estimated to be worth 531.7 billion pesos in 1994
- The VAT base was also broadened in 1997 to include services, through Republic Act 7716.
� Estrada Regime (1998-2000)
 - The succeeding term of President Joseph Estrada in 1998 was too short to
constitute inany change in the tax system.
� Arroyo Regime (2000-2010)
-She undertook increased government spending without adjusting tax collections.
-In 2005, the Expanded Value-Added Tax (E-VAT) was signed into law as
Republic Act 9337.
-In February 2006, the VAT tax rate was also increased from 10% to 12%.
� Aquino Regime (2010-2016)
-The Administration ventured into the adjustment of excise tax on liquor and cigarette
or the Sin Tax Reform made law by Republic Act 1035
-It allows the increase the budget of the DOH and PhilHealth (from 55.2 million in 2012 to
515.4 million in 2015).
� Duterte Regime (2016-Present)
-Supported the implementation of the Tax Reform for Acceleration and Inclusion
(TRAIN) law.
-Vowed to lower income tax rates shouldered by working Filipinos.
-The proposed tax reform also seeks to limit VAT exceptions and increase excise tax on
petroleum products and automobiles.