Social, Political, Economics, and

MODULE
4
Cultural Issues in Philippine History
Hooray to a new academic
year! The journey in this
pandemic has been tough yet MODULE CONTENTS
you made it. New normal has
come, but the learning must
continue. This would be pretty
exciting! As we start digging LESSON 1:
through this course pack, we will
focus on the topics dedicated to
Evolution of the
enduring issues in Philippine Philippine
society, which history could lend
a hand in understanding, and
Constitution
hopefully, proposing solutions. LESSON 2: Policies
These topics include the
mandated discussion on the
on Agrarian Reform
Philippines constitution, policies LESSON 3:
on agrarian reform, and
taxation.
Evolution of
Philippine Taxation

Intended Learning Outcomes

At the end of Module 4, you should be able to:

• Analyze social, political, economic, and cultural issues in the Philippines

using the lens of history.
• Recognize that the problems of today are consequences of decisions
and events that happened in the past.
• Develop understanding several enduring issues in Philippine society
through history
• Able to propose recommendations or solutions to present-day
problems based on the understanding of the past and anticipation of
the future through the study of history
 LESSON
“We cannot free ourselves unless we
1 Evolution of the Philippine
Constitution

move forward united in a single desire

- Emilio Aguinaldo

TIME FRAME

TAKE THE CHALLENGE!

In this lesson, challenge yourself to:

a. generate statement describing the social and cultural issues in

the Philippine
b. compare and contrast different constitution over the years and
c. produce an essay/reflection paper base on the history of the
government of the Philippines.

G E T T I N G S T A R T E D

Hello student! Let us fill this lesson with curiosity. For sure, you will enjoy this
lesson because this is the part where we explore the history f our beloved
motherland came to life. In this lesson, your curiosity will be answered by
understanding the past government that made our government what it is
now.. Of course, let us familiarized the different types of constitution that
has been passed over the years and the importance it is in the Philippine
government. Enjoy!

A C T I V I T Y

TRUE OR FALSE
Hi student! You are now challenge to identify whether the
statements is true or false. Do your best and analyse each
sentences to determine the right answer.
 A C T I V I T Y

_____1. The Constitution of Biak-na-Bato was fully implemented

and was signed between the Spanish and the Philippine
Revolutionary Army.
_____2. The Constitution of Biak-na-Bato was borrowed for Cuba
and was written by Isabelo Artacho and Felix Ferrer in Spanish
but was later translated in Tagalog.
_____3. The Spanish were defeated by the American in the Battle
of Manila Bay on May 1, 1898.
_____4. The Malolos Constitution was influenced by the Spanish
Constitution of 1812.
_____5. The 1899 Malolos Constitution was fully enforced despite
the ongoing war.
_____6. On December 10, 1898, the Philippines was effectively a
territory of the United States upon signing of the Treaty of Paris
between Spain and US.
_____7. The first organic law for the Philippine Islands on that
provided for the creation of a popularly elected Philippine
Assembly was the Philippine Organic Act of 1902.
_____8. The Philippine Independence Act was also known as the
Hare- Hawes-Cutting Act.
_____9. The Philippine Court system is vested with the power of
judiciary, and is composed of a Supreme Court and lower courts
as created by law.
____10. Only the House of Congress can initiate the
impeachment of the president, members of the Supreme Court,
and other constitutionally protected public officials such as the
Ombudsman.
 A C T I V I T Y

Define the Word!

For this activity, you are challenge by your remembering skills. Do you still
remember the definition of the important words in the lesson? Well, this time, we
will test your skill on this activity. Define the following words based on the previous
topic.

1. Constitution
_______________________________________________________
_______________________________________________________
____________________________.
2. Hare-Hawes Act
_______________________________________________________
_______________________________________________________
____________________________
3. Tyding Mcduffie - Act
_______________________________________________________
_______________________________________________________
______________________________
4. Constitution of Biak-na-Bato
_______________________________________________________
_______________________________________________________
____________________________
5. Malolos Constitution
_______________________________________________________
_______________________________________________________
____________________________
 A N A L Y S I S

Hello student! How was your experience with the activities? Are you having fun? If
so, that is great. Right now, let us try to wrap up your experiences with the two
activities. Let us try to answer the following questions:

Base on the lesson, what is the best Constitution for the Filipino
People in today’s time?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
_____________________________________.
Do you think that by opposing the Hare-Hawes-Cutting Act, known
as granting Filipino’s independence was a good decision for the
Filipinos at the time? Why or Why not?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
____________________________________.
What is your opinion of the Treaty of Paris? Did the Filipino
benefitted with the Treaty?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
___________________________________.
 A B S T R A C T I O N

Phil. Constitution
Constitution is defined as a set of
fundamental principles or established models
according to which state or other
organization is governed, thus, the word itself
means to be a part of a whole, the coming
together of distinct entities into one group, 1899 MALOLOS CONSTITUTION
with the same principles and ideals. These
principles define the nature and extent of After the signing of the truce, the Filipino
government revolutionary leaders accepted a payment
from Spain and went to exile in Hong Kong.
Upon the defeat of the United States Navy
transported Aguinaldo back to the
Philippines. The Malolos Constitution was a
newly reformed Philippine revolutionary
1897 BIAK-NA-BATO forces reverted to the control of Aguinaldo,
and the Philippine Declaration of
Biak-na-Bato was the provisionary Independence was issued on June 12, 1898,
Constitution of the Philippine Republic together with several decrees that formed
during the Philippine Revolution, and was the First Philippine Republic. The Malolos
promulgated by the Philippines Congress was elected, which selected a
Revolutionary Government on 1 commission to draw up a draft constitution
November 1897. The Constitution, on September 17, 1898, which was
borrowed from Cuba, was written by composed of wealthy and educated men.
Isabelo Artacho and Felix Ferrer in Spanish
and later translated to Tagalog. The document they came up with,
approved by the Congress on Nov. 29, 1898,
The organs of the government under the and promulgated by Aguinaldo on Jan. 21,
Constitution were: (1) the Supreme 1899, was titled “The Political Constitution of
Council, which was vested with the power 1899” and written in Spanish. The
of the Republic, headed by the president Constitution has 39 articles divided into 14
and four department secretaries; the titles, with eight articles of transitory
interior, foreign affairs, treasury, and war; provisions, and a final additional article. The
(2) the Consejo Supremo de Gracia Y document was patterned after the Spanish
Constitution of 1812, with influences from
Justicia (Supreme Council of Grace and
the charters of Belgium, Mexico, Brazil,
Justice), which was given the authority to
Nicaragua, Costa Rica, and Guatemala,
make decisions and affirm or disprove the
and the French Constitution of 1793. These
sentences rendered by other courts and
countries were studied because they
to dictate rules for the administration of shared similar social, political, ethnological ,
justice; and (3) the Asamblea de and governance conditions with the
Representantes (Assembly of Philippines Prior constitutional, namely, the
Representatives), which was to be Kartilya and the Sanggunian-Hukuman, the
convened after the revolution to create a charter of laws and morals of the Katipunan
new Constitution and to elect a new written by Emilio Jacinto in 1896; the Biak-na-
Council of Government and Bato Constitution of 1897 planned by
Representatives of the people. Isabelo Artacho; Mabini’s Constitutional
Program of the Philippine Republic of 1898;
The Constitution of Biak-na-Bato was the provisional constitution of Mariano
never fully implemented, since a truce, Ponce in 1898 that followed the Spanish
the Pact of Biak-na-Bato was signed constitutions; and the autonomy projects of
between the Spanish and the Philippine Paterno in 1898.
Revolutionary Army.
Primary Source: Preamble of the Political
Constitution of 1899

We, the Representatives of the Filipino

People, lawfully convened, in order to
establish justice, provide for common
defense, promote the general welfare A permanent commission seven, elected
and insecure the benefits of liberty , by the assembly, and granted specific
imploring the aid of the Sovereign powers by the constitution, was to sit
Legislator of the Universe for the during the intervals between sessions of
attainment of these ends, have voted, the assembly.
decreed, and sanctioned the following
political constitution Executive powers was vested in the
president, and elected by a constituent
As a direct challenge to colonial assembly of the Assembly of
authorities of the Spanish empire, the Representatives and special
sovereignty was retroverted to the representatives. The resident will serve a
people, a legal principle underlying the term of four year without re-election There
Philippine Revolution. The people was no vice president, and I case of a
delegated governmental functions to civil vacancy, a president was to be selected
servants while they retained actual by the constituent assembly.
sovereignty. The 27 articles of the Title IV
detail the natural rights and popular The 1899 Malolos Constitution was never
sovereignty of Filipinos, the enumeration was never enforced due to the ongoing
of which does not imply the prohibition of war. The Philippines was effectively a
any other rights not expressly stated. Title territory of the United States upon the
III, Article V also declares that the State signing of the Treaty of Paris between
recognizes the freedom and equality of all Spain and the United States transferring
beliefs, as well as the separation of sovereignty of the Philippines on
Church and State. These are direct December 10, 1898.
reactions to features of the Spanish
government in the Philippines, where the
friars were dominant agents of the state.

The form of government, according to

Title II, Article 4 is to be popular,
representative, alternative, and
responsible, and shall exercise three
distinct powers – legislative, executive,
and judicial. The legislative power was
vested in a unicameral body called the
Assembly of Representatives, members of
which are elected for terms of four years.
Secretaries of the government were given
seats in the assembly, which meet
annually for a period of at east three
months. Bills could be introduced either by
the president or by a member of the
assembly. Some powers not legislative in
nature were also given to the body, such
as the right to select its own officers, right
of censure and interpellation, and the
right of impeaching the president, cabinet
members, the chief justice of the Supreme
Court, and the solicitor-general.
1935: The Commonwealth Constitution
By 1934, another law, the Tydings-McDuffie
From 1898 to 1901, the Philippines would Act, also known as the Philippine
be placed under a military government Independence Act, was passed by the
until a civil government would be put United States Congress that provided
into place. authority and defined mechanisms for the
establishment of a formal constitution by a
constitutional convention. The members of
Two acts of the United States Congress
the convention were elected and held their
were passed that may be considered to
first meeting on 30 July 1934, with Claro M.
have qualities of constitutionality. First Recto unanimously elected as president.
was the Philippine Organic Act of 1902,
the first organic law for the Philippine The constitution was crafted to meet the
islands that provided for the creation of approval of the United States government,
a popularly elected Philippine and to ensure that the United States would
Assembly. The act specified that live up to its promise to grant independence
legislative power would be vested in a to the Philippines
bicameral legislature composed of the
Philippine Commission as the upper
house and the Philippine Assembly as
lower house. Key provisions of the act
included a bill of rights for Filipinos and
the appointment of two non-voting
Filipino Resident Commissioners of the
Philippines as representative to the
United States House of Representatives.
The second act that functioned as a
constitution was the Philippine
Autonomy Act of 1916, commonly
referred to as “Jones Law,” which
modified the structure of the Philippine
government through the removal of the
Philippine Commission, replacing it with
a Senate that served as the upper
house and its members elected by the Primary Source: Preamble of the 1935
Filipino voters, the first truly elected Commonwealth
national legislature. It was also this Act
that explicitly declared the purpose o The Filipino people, imploring the aid
the United States to end their of Divine Providence, in order to
sovereignty over the Philippines and
establish a government that shall
recognize Philippine independence as
embody their ideals, conserve and
soon as a stable government can be
established. develop the patrimony of the nation,
promote the general welfare, and
In 1932, with the efforts of the Filipino secure to themselves and their
independence mission led by Sergio posterity the blessings of
Osmeña and Manuel Roxas, the United independence under a regime of
States Congress passed the Hare- justice, liberty, and democracy, do
Hawes-Cutting Act with the promise of ordain and promulgate this
granting Filipinos independence. The bill constitution
was opposed by the Senate President
Manuel L. Quezon and consequently,
rejected by the Philippine Senate.
The constitution created the
Commonwealth of the Philippines, an CONSTITUTION AUTHORITARIANISM
administrative body that governed the
Philippines from 1935 to 1946 It is a
transitional administration to prepare the
country toward its full achievement of In 1965, Ferdinand E. Marcos was elected
independence. It originally provided for a president, and in 190. Philippine Congress
unicameral National Assembly with a passed a resolution calling for a
constitutional convention to change the
president and vice president elected to a
1935 Constitution.
six. year term without re-election. It was
amended in 1940 to have a bicameral
Marcos won the re-election 1969, in a bid
Congress composed of a Senate and a
boosted by campaign overspending and
House of Representatives, as well as the use of government funds. Elections of the
creation of an independent electoral delegates to the constitutional convention
commission, and limited the term of were held on 20 November 1970, and the
office of the president and vice president convention began formally on 1 June 1871,
to four years, with one re-election Rights with former President Carlos P. Garcia being
to suffrage were originally afforded to elected a convention president.
male citizens of the Philippines who are Unfortunately, he died, and was wounded
twenty-one years of age or over and are by another former president, Diosdado
able to read and write; this was later on Macapagal.
extended to women within two years
after the adoption of the constitution Before the convention finished its work,
While the dominant influence in the Martial Law was declared Marcos cited a
constitution was American, it also bears growing communist insurgency as reason
traces of the Malolos Constitution, the for the Martial Law, which was provided for
German, Spanish, and Mexican in the 1935 Constitution. Some delegates of
constitutions, constitutions of several the ongoing constitutional convention were
South American countries, and the placed behind bars and others went into
unwritten English Constitution. The draft of hiding or were voluntary exiled. With
the constitution was approved by the Macron as dictator, the direction of the
constitutional convention on 8 February convention turned, with accounts that the
president himself dictated some provisions
1935, and ratified by the U.S. President
of the constitution, manipulating the
Franklin B. Roosevelt on 25 March 1935.
document to be able to hold on to power
Elections were held in September 1935
for as long as he could. On 29 November
and
1979, the convention approved its
Manuel L Quezon was elected President proposed constitution.
of the Commonwealth, The
Commonwealth was briefly interrupted The constitution was supposed to introduce
by the events of the World War II, with the a parliamentary style government, where
Japanese occupying the Philippines. legislative power was vested in a
Afterward, upon liberation, the Philippines unicameral National
was declared an independent republic Assembly, with members being elected to a
on 4 July 1946 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. The president 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 Presidential Decree
The situation in the 1980s had been very
No: 73 setting the date of the plebiscite to
turbulent. As Marcos amassed
ratify or reject the proposed constitution on power. discontent has also been
30 November 1973. This plebiscite was burgeoning. The tide turned swiftly when in
postponed later on since Marcos feared that August 1983, Benigno Aquino Jr., opposition
the public might vote to reject the leader and regarded as the most credible
constitution. Instead of a plebiscite, Citizen alternative to President Marcos, was
Assemblies were held from 10-15 January assassinated while under military escort
1973, where the citizens coming together and immediately after his return from exile in the
voting by hand, decided on whether to ratify United States. There was widespread
the constitution, suspend the convening of suspicion that the order to assassinate
the Interim National Assembly, continue Aquino came from the top levels of the
government and the military. This event
Martial Law, or place a moratorium on
caused the coming together of the non
elections for a period of at least several years. violent opposition against the Marcos
The President, on 17 January 1973, issued a authoritarian regime. Marcos was then
proclamation announcing that the proposed forced to hold "snap elections a year early,
constitution had been ratified by an and said elections were marred by
overwhelming vote of the members of the widespread fraud. Marcos declared himself
highly irregular Citizen Assemblies. winner despite international condemnation
and A small nationwide protests. A group of
The constitution was amended several times military rebels attempted to stage a coup,
In 1976, Citizen Assemblies unite again, but failed; however, this triggered what
decided to allow the continuation of Martial came to be known as the EDSA people
Power Revolution of 1986, as people from all
Law, as well as approved the amendment:
walks of life spilled onto the streets Under
an Interim Batasang Pambansa to substitute pressure from the United States of America,
for the Interim National Assembly, the who used support Marcos and his Martial
president to also become the Prime Minister Law, the Marcos family led into exile His
ad continue to exercise legislative power until opponent in the snap elections, Benigno
Martin Law was lifted and authorized the Aquino Jr.’s widow, Corazon Aquino, was
President to legislate on his own on an installed as president on 25 February 1986,
emergency basis. An overwhelming majority
would ratify further amendments 1987 CONSTITUTION AFTER MARTIAL
succeedingly. In 1980, the retirement age of LAW
members of the judiciary was extended to 70
years. In 1981, the parliamentary system was President Corazon Aquino’s government
formally modified to French-style, semi- had three options regarding the
presidential system where executive power constitution: revert to the 1935 Constitution,
was restored to the president, who was once retain the 1973 Constitution and be granted
again, to be directly elected; an Executive the power to make reforms, or start anew
Committee was to be created, composed of and break from the “vestiges of a disgraced
the Prime Minister and 14 others, that served dictatorship.” They decided to make a new
as the president's Cabinet; and some constitution that, according to the president
electoral reforms were instituted. In 1984, the herself, should be “truly reflective of the
aspirations and ideals of the Filipino
Executive Committee was abolished and the
people.”
position of the vice president was restored.

After all the amendments introduced, the

1973 Constitution was merely a way for the
President to keep executive powers, abolish
the Senate, and by any means, never acted
as a parliamentary system, instead
functioned as an authoritarian presidential
system, with all the real power concentrated
in the hands of the president, with the
backing of the constitution.
In March 1986, President Aquino proclaimed
a transitional constitution to last for a year
while a Constitutional Commission drafted a
permanent constitution. This transitional
constitution, called the Freedom
Constitution, maintained many provisions of
the old one, including in rewritten form the
presidential right to rule by decree. In 1986,
a constitutional convention was created,
composed of 48 members appointed by
President Aquino from varied backgrounds
and representations. The convention drew
up n permanent constitution, largely
restoring the setup abolished by Marcos in
1972, but with new ways to keep the
The legislative power resides in a Congress
president in check, a reaction to the
divided into two Houses: the Senate and the
experience of Marcos rule. The new
House of Representatives. The 24 senators are
constitution was officially adopted on 2
elected at large by popular vote, and can
February 1987.
serve no more than two consecutive six year
terms. The House is composed of district
The Constitution begins with a preamble
representatives representing a particular
and eighteen self-contained articles. It
geographic area and makes up around 80% of
established the Philippines as a "democratic
the total number of representatives. There are
republican State where "sovereignty resides
234 legislative districts in the Philippines that
in the people and all government authority
elect their representatives to serve three-year
emanates from them." It allocates
term. The 1987 Constitution created a party-list
governmental powers among the
system to provide spaces for the participation
executive, legislative, and judicial branches
of under represented community sectors or
of the government.
groups. Party-list representative may in up not
more than 20% of the seats in the House.
The Executive branch is headed by the
president and his cabinet, whom he
Aside from the exclusive power of legislation,
appoints. The president the head of the
Congress may also declare war, through a two-
state and the chief executive, but his power
thirds vote in both upper and lower houses. The
is limited by significant checks from the two
power of legislation, however, is also subject to
other co-equal branches of government,
an executive check, as the president retains
especially during times of emergency. This is
the power to veto or stop n bill from becoming
put in place to safeguard the country from
a law. Congress may
the experience of martial law despotism
only override this power with a two-thirds vote
during the presidency of Marcos. In cases of
in both houses.
national emergency, the president may still
declare martial law, but not longer than a
The Philippine Court system is vested with the
period of sixty days. Congress, through a
power of the judiciary, and is composed of a
majority vote, can revoke this decision, or
Supreme Court and lower courts an created by
extend it for a period that they determine.
law. The Supreme Court is a 15-member court
The Supreme Court may also review the
appointed by the president without the need to
declaration of martial law and decide if
be confirmed by Congress. The appointment
there were sufficient justifying facts for the
the president makes however, is limited to a list
act. The president and the vice president
of nominees provided by a constitutionally
are elected at large by a direct vote,
specified Judicial and Bar Council. The
serving a single six-year term.
Supreme Court Justices may hear, on appeal,
any cases dealing with the constitutionality of
any law, treaty, or decree of the government,
case in where questions of jurisdiction or judicial
error are concerned, or cases where the
penalty is sufficiently grave. It may also exercise
original jurisdiction over cases involving
government or international officials. The
Supreme Court is also in charge of overseeing
the functioning and administration of the lower
courts and their personnel.
The Constitution also established three independent Constitutional Commissions, namely,
the Civil Service Commission, a central agency in charge of government personnel: the
Commission on Elections, mandated to enforce and administer all election laws and
regulations, and the Commission on Audit, which examines all funds, transactions, and
property accounts of the government and its agencies.

To further promote the ethical and lawful conduct of the government, the Office of the
Ombudsman was created to investigate complaints that pertain to public corruption,
unlawful behavior of public officials, and other public misconduct. The Ombudsman can
charge public officials before the Sandiganbayan, a special court created for this purpose.

Only the House of Representatives can initiate the impeachment of the president, members
of the Supreme Court, and other constitutionally protected public officials such as the
Ombudsman. The Senate will then try the impeachment case. This is another safeguard to
promote moral and ethical conduct in the government.

Changing the Constitution is a perennial issue that crops up, and terms such as "Cha-Cha,"
"Con-Ass," and "Con-Con" are regularly thrown around Article XVII of the 1987 Constitution
provides for three ways by which the Constitution can be changed.
Congress (House of Representatives and the Senate) may convene as a Constituent Assembly
for Con Ass) to propose amendments to the Constitution. It is not clear, however, if Congress is
to vote as a single body or separately. How the Congress convenes an a Con-Ass is also not provided for in
the Constitution.

Another method is through the Constitutional Convention for Con Con), where Congress, upon a vote of two-
third of all its members, calls for constitutional convention. They may also submit to the electorate the question
of calling a convention through a majority vote of all its members. In a Con-Con, delegates will propose
amendments or revision the constitution, not Congress. The 1987 Constitution does not provide for a method by
which delegates to the Con-Con are chosen .

The Third method is called the "People's Initiative" (or PI). In this method, amendments to the Constitution may
be proposed by the people upon petition of at least 12% of the total number of registered voters. An legislative
districts must be represented by at least 1 of the registered Quotes therein. No amendment is allowed more
than once every five years since a successful PI. The 1987 Constitution directs the Congress to enact a law to
implement provisions of the PI, which has not yet materialized.

Amendments or revision to the constitution shall be valid only when ratified by a majority of the votes cast in a
national referendum
 The administration of the succeeding
President Benigno Aquino III had no
marked interest in charter change,
except those emanating from different
members of Congress, including the
Speaker of the House, Feliciano
Belmonte Jr. who attempted to
introduce amendments to the
Constitution that concern economic
provisions that aim toward liberalization.
This effort did not see the light of day.

ATTEMPTS TO CHANGE THE 1987

CONSTITUTION In an upsurge of populism, President
The 1987 Constitution provided for the method Rodrigo Duterte won the 2016
by which the Constitution can be amended, all presidential elections in a campaign
requiring ratification by a majority vote national centering on law and order,
referendum. These methods were Constituent proposing to reduce crime by killing
Assembly Constitutional Convention, and tens of thousands of criminals. He is
People's Initiative. Using these modes there were
efforts to amend or change the 1987
also known advocate of federalism,
Constitution, starting with the presidency of Fidel a compound mode of government
V. Ramos who succeeded Corazon Aquino The combining a central or Federal
first attempt was in 1905, when the Secretary of government with regional
National Security Council. Jose Almonte drafted governments in a single political
a constitution, but it was exposed to the media system This advocacy is in part an
and it w prospered. The second effort
happened in 1907, when a group called PIRMA
influence of his background, being a
hoped to gather signatures from voters to local in Mindanao that has been
change the constitution through a people's mired in poverty and violence for
initiative. Many were against this including the decades 7 December 2016,
Senator Miriam Defensor-Santiago, who brought President Duterte signed an
the issue to court and won-with the Supreme executive order creating consultative
Court judging that a people's initiative cannot
push through without an enabling law.
committee to review the 1987
Constitution.
The succeeding president, Joseph Ejercito
Estrada, formed a study commission to
investigate the issues surrounding charter
change focusing on the economic and
judiciary provisions of the constitution. This effort
was also blocked by different entities, After
President Estrada was replaced by another
People Power and succeeded by his Vice
President, Gloria Macapagal- Arroyo, then
House Speaker Jose de Venecia endorsed
constitutional change through a Constituent
Assembly, which entails a two-thirds vote of the
House to propose amendments or revision to
the Constitution. This initiative was also not
successful since the term of President Arroyo
was mired in controversy and scandal, including
the possibility of Arroyo extending her term as
president, which the Constitution does not
allow.
 A P P L I C A T I O N

REFLECTION PAPER ESSAY

We are almost done, I just want to Nearly there. For this one, I wan to
see if you truly understand the know our own perspective on this
topic, therefore, I want to know subject matter. You are free to write
your opinion on the two your own point of view. Why do you
Constitution. If given the chance think the previous Presidents of the
to choose between Malolos Republic of the Philippines kept on
Constitution and Biak-na-Bato trying to amend the 1987
Constitution, what will you choose Constitution? Please write a 240
and why? Please write a 250 word word Reaction Paper Essay in a one
Reflection Essay in a 1 whole sheet whole sheet of paper.
of paper.
 LESSON 2
“Man – despite his artistic pretensions, his
sophistication, and his many accomplishments –
Policies on
Agrarian Reform
owes his existence to a six inch layer of topsoil
and the fact that it rains - unknown

TIME FRAME

TAKE THE CHALLENGE!

In this lesson, challenge yourself to:

a. show familiarity to different agrarian reforms ; and

b. explain the difference between types of landownership in the
Philippines;

G E T T I N G S T A R T E D

It is now Lesson 2 and let us keep the curiosity about our country’s rich
history. Do you ever wonder what was ownership in the Philippine was like
during the Spanish and American colonization? If so, do you know that
Filipino farmers faced too many hardship, unlike the freedom we are
enjoying now? In this lesson, you will learn more about the history of our
mother country on the hands of the colonist and the laws that were
passed for the benefit of the Filipino farmers. Enjoy!

A C T I V I T Y

TRUE OR FALSE
Hi student! You are now challenge to identify whether the
statements is true or false. Do your best and analyse each
sentences to determine the right answer.
_____1. Pablo is the system of agriculture brought by the Spaniards
when they colonized the country.
_____2. During the Spanish periods, Filipino families were allowed
to own a land.
_____3. The King of Spain owned the land in the Philippines. T
_____4. There were 4 Law of Indies wherein the Spanish crown
awarded land.
______5. The hacienda system was developed as early as the 15th
century.
______6. The primary revolts of the Filipino people were often
cause by the agrarian in nature.
______7. The Americans were not aware why Filipino were restless
against the Spaniards.
______8. The Sakdal or Sakdalista Uprising was a peasant rebellion
in Central Luzon on May 1935.
_____9. President Quezon’s administration created the NARIC and
NLSA.
______10. Under President Fidel V. Ramos, the LADESCO was
created.

A C T I V I T Y

ACRONYMS

Identify the following Acronyms and explain their role in the

Agrarian Reform.
1. NARIC - ______________________________________________
2. NLSA - _______________________________________________
3. LASEDECO - __________________________________________
4. ACCFA - ______________________________________________
5. NARRA - _____________________________________________
6. CARP - _______________________________________________
7. CARL - _______________________________________________
8. DAR - _______________________________________________
9. CARPER - _____________________________________________
10. DENR - ______________________________________________
 A N A L Y S I S

3. How will you differentiate the landownership in the Philippines with the Spanish
government vs. the American government?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
____________.

4. What could be the other Agrarian Reform you can suggest to the government
for the improvement of the farming industry?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________.

5. Why agrarian reform is important for the Filipino Farmers?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________.

A B S T R A C T I O N
LANDOWNERSHIP UNDER SPAIN

When the Spaniards colonized the country, they

brought with them a system of pueblo agriculture,
POLICIES ON AGRARIAN REFORM where rural communities, often dispersed and
scattered in nature, were organized into pueblo and
given land to cultivate.
Agrarian reform is essentially the rectification of
the whole system of agriculture, an important Families were not allowed to own their land-the King
aspect of the Philippine economy because of Spain owned the land, and Filipinos were assigned
nearly half of the population is employed in the to these lands to cultivate them, and they paid their
agricultural sector, and most citizens Iive in rural colonial tributes to the Spanish authorities in the
areas Agrarian reform is centered on the form of agricultural products.
relationship between production and the Later on, through the Law of the Indies, the Spanish
distribution of land among farmers. It is also crown awarded tracts of land to (1) religious orders,
focused on the political and economic class (2) repartimientos for Spanish military w for their
character of the relations of production and service, and (3) Spanish encomenderos, those
distribution in farming and related enterprises, mandated to manage the encomienda or the land
and how these connect to the wider class given to them, where Filipinos worked and paid their
structure. Through genuine and comprehensive tribute to the encomendero. Filipinos were not then
agrarian reform, the Philippines would be able the right to own land, and only worked in them so
to gain more from its agriculture! potential and that they might have a share the crops and pay
uplift the Filipinos in the agricultural sector, who tribute. The encomienda system was an unfair and
have been for the longest time suffering in abusive system as "compras y vandalas" became the
poverty and discontent. norm for the Filipino farmer working the land they
were made to sell their products at a very low price
or surrender their products to the encomenderos,
who resold this at a profit. Filipinos in the
encomienda were also required to render services to
their encomenderos that were unrelated to farming.
 LANDOWNERSHIP UNDER
AMERICANS

The American we aware that the main

cause of social unrest in the Philippines was
landlessness, and they attempted to put an
end to the deplorable conditions of the
tenant farmers by passing several land
policies to increase the small landholders
From this encomienda system, the hacienda and distribute ownership to bigger number
system developed in the beginning of the of Filipino tenants and farmers.
nineteenth century as the Spanish government
implemented policies that would fast track the The Philippine Bill of 1902 provided
entry of the colony into the capitalist world. regulations on the disposal of public lands. A
The economy was tied to the world market in private individual may own 16 hectares of
the Philippines became an exporter of raw Land while corporate landholders may have
materials and importer of goods. Agricultural 1,024 hectares. Americans were also given
exports were demanded and the hacienda rights to own agricultural lands in the
system was developed as a new form of country. The Philippine Commission also
ownership. In the 1860s, Spin enacted a law
enacted Act No. 496 or the Land
ordering landholders to register their
Registration Act, which introduced the
Landholdings, and only those who knew
Torrens system to address the absence of
benefitted from this, Lands were claimed and
earlier records of issued land titles and
registered in other people's names, and many
peasant families who were assigned" to the conduct accurate land surveys. In 1903, the
land in the earlier days of colonization were homestead program was introduced,
driven out or forced to come under the power allowing a tenant to enter into an
of these people who claimed rights to the land agricultural business by acquiring a farm of
because they held a title. at least 16 hectares. This program. however,
was limited to areas in Northern Luzon and
This is the primary reason why revolts in the Mindanao, where colonial penetration had
Philippines were often agrarian in nature. been difficult for Americans, n problem they
Before the colonization. Filipinos and inherited from the Spaniards.
communal ownership of land. The system
introduced by the Spaniards became a bitter
Source of hatred and discontent for the
Filipinos. Religious orders, the biggest
landowners in the Philippines, also became a
main source of abuse and exploitation for the
Filipinos, increasing the rent paid by the
Filipinos on a whim.

Filipinos fought the Philippine Revolution in a

confluence of motivations, but the greatest
desire for freedom would be the necessity of
owning land. Upon the end of the Philippine
Revolution, the revolutionary Government
would declare all large landed estates,
especially the confiscated friar lands as
government property. However, the first
Philippine republic was short-lived. The
entrance of the Americans would signal a new
era of colonialism and imperialism in the
Philippines.
Land Ownership did not improve during the
American period; in fact, it even worsened,
because there was no limit to the size of
landholdings people could possess and the
accessibility of possession was limited to those
who could afford to buy, register, and acquire
fixed property titles. Not all friar lands acquired
by the Americans were given to landless
peasant farmers. Some lands were sold or
leased to American and Filipino business interest.
This early land reform program was also
implemented without support mechanisms-if a
landless peasant farmer received land, he only
received land, nothing more. Many were forced
to return to tenancy and wealthy Filipino
hacienderos purchased or forcefully took over
lands from farmers who could not afford to pay The Sakdal (or Sakdalista) Uprising
their debts. The system introduced by the was a peasant rebellion in Central
Americans enabled more lands to be placed
under tenancy, which led to widespread
Luzon that lasted for two days, May 2-
peasant uprisings, such as the Colorum and 3, 1935. It was emails crushed by
Sakdal Uprising in Luzon. Peasants and workers government force then, but this
found refuge from millenarian movements that historical event tells of the social
gave them hope that change could still happen inequality brought about by issues in
through militancy. land ownership and tenancy in the
During the years of the Commonwealth
country The Filipino word sakdal
government, the situation further worsened as means "to accuse," which is the title
peasant uprisings increased and Landlord- of the newspaper helmed by Benigno
tenant relationship became more and more Ramos. He rallied support from Manila
disparate. President Quezon laid down a social and nearly provinces through the
justice program focused on the purchase of publication, which led to the
haciendas, which were to be divided and sold
to tenants. His administration also created the
establishment of the Partido
National Rice and Corn Corporation (NARIC) Sakdalista in 1993 They demanded
sign public defenders to assist peasants in court forms from the government, such as
battles for their rights to the land, and the Court the abolition of taxes and equal
of Industrial Relations to exercise jurisdiction over common ownership of land, among
disagreements arising from landowner tenant others. They also opposed the
relationship. The homestead program also
continued through the National Land
dominant Nacionalista Party
Settlement Administration (NLSA). Efforts toward acceptance of gradual
agrarian reform by the Commonwealth failed independence from the United States
because of many problems such as budget and instead demanded immediate
allocation for the settlement program and severance of ties with America.
widespread peasant uprisings, World War II put
a halt to all interventions to solve these problems
as the Japanese occupied the country
For new party with a small clout, they
did well in the 1934 general elections,
scoring three stents in the House of
Representatives and several local
posts. This encouraged them to
attempt an uprising in 1935. Upon
being crushed, Ramos fled to Tokyo
and the Partido Sakdalista collapsed.
 NARRA Accelerated the government's
resettlement program and distribution of
agricultural lands to landless tenants and
farmers. It also aimed to convince members of
the Hula, a movement of rebels in Central
Luzon, to settle in areas where they could restart
their lives a peaceful citizens.

Despite a more vigorous effort toward agrarian

reform, the situation for the farmers remained
dire since the government lacked funds and
provided inadequate support services for the
program, The landed elite did not fully
cooperate and they criticized the programs.

A major stride in land warm arrived during the

term of President Diosdado Macapagal through
POST-WAR INTERVENTIONS TOWARD AGRARIAN the Agricultural Land Reform Code (Republic
Act No. 3844)
REFORM
Rehabilitation and rebuilding after the war were
focused on providing solutions to the problems of Primary Source: Declaration of Policy under RA
the past. The administration of President Roxas 3844 or Agricultural Land Reform Code
pantsed Republic Act No. 34 to establish a 70-30
sharing arrangement between tenant and landlord, Source Section 2. Declaration Policy-It in the
respectively, which reduced the interest of policy of the State:
landowners' loans to tenants at six percent or less. (1) To establish owner –cultivatorship and the
The government also attempted to redistribute economic family-size farm as the basis of
Philippine agriculture and, as a
hacienda lands, falling prey to the woes of similar
consequence, divert landlord capital in
attempts since no support was given to small
agriculture to industrial development.
farmers who were given lands.
(2) To achieve a dignified existence for the
small farmers free from pernicious
Under the term of President Elpidio Quirino, the Land institutional restraints and practices;
Settlement Development Corporation (LASEDECO) (3) To create a truly viable social and economic
was established to accelerate and expand the structure in agriculture conducive to greater
resettlement program for peasants. This agency productivity and higher farm incomes
later on became he National Resettlement and (4) To apply all labor laws equally and without
Rehabilitation Administration (NARRA) under the discrimination to both industrial and
administration of President Ramon Magsaysay. agricultural wage camera: provide a more
vigorous and systematic land resettlement
Magsaysay saw the importance of pursuing (5) To program and public and distribution and
genuine land reform program and convinced the (6) To make the small farmers more
Congress, majority of which were landed elites to independent, self-reliant and responsible
pass legislation to improve the Land reform situation. citizens, and source of genuine strength in
Republic Act No. 1199 the Agricultural Tenancy Act our democratic society.
was passed to govern the relationship between
landholders and tenant farmers, protecting the This Code abolished share tenancy in the
tenurial rights of tenants and enforced tenancy Philippines and prescribed a program to
practices. Through this law, the Court of Agricultural convert tenant-farmers to lessees and later on
Relations was created in 1955 to improve tenancy owner-cultivators It also need to free tenant
from tenancy and emphasize owner
security, fix Iand rentals of tenanted farms, and
cultivatorship and farmer independence, equity
resolve land disputes filed by the landowners and
productivity improvement and public land
peasant organizations. The Agricultural Tenancy
distribution. Despite being one of the most
Commission was also established to administer comprehensive pieces of land reform legislation
problems created by tenancy. The Agricultural ever passed in the Philippines, Congress did not
Credit and Cooperative Financing Administration make any effort to come up with a separate bill
(ACCFA) was also created mainly to provide to fund its implementation, despite the fact that
warehouse facilities and assist farmers in marketing it proved beneficial in the provinces where pilot
their products. The administration spearheaded the tested .
establishment of the Agricultural and Industrial Bank
to provide easier terms in applying for homestead
and other farmland
 In case of default, the amortization due shall
be paid by the farmers cooperative in which
the defaulting tenant-farmer is a member,
with the cooperative having a right of
recourse against him:

The government shall guaranty such

amortizations with shares of stock in
government-owned and government
controlled corporations;

No title to the land owned by the tenant-

farmers under this Decree shall be actually
issued to a tenant-farmer unless and until the
AGRARIAN REFORM EFFORTS UNDER MARCOS tenant-farmer has become a full-fledged
member of a duly recognized farmers
President Marcos declared Martial Law in 1972, cooperative;
enabling him to essentially wipe out the
landlord-dominated congress. Through his Title to land acquired pursuant to this
“technocrats,” he was able to expand Decree or the Land Reform Program of the
executive power to start a “fundamental Government shall not be transferable
restructuring” of government, including its except by hereditary succession or to the
efforts in solving the deep structural problems Government in accordance with the
of the countryside. Presidential Decree No. 27 provisions of this Decree, the Code of
or the Code of Agrarian Reform of the Agrarian Reforms and other
Philippines became the core of agrarian existing laws and regulations;
reform during Marcos regime.
The Department of Agrarian Reform through
Primary Source: Presidential Decree No. 27, 21 its Secretary is hereby empowered to
October 1972 promulgate rules and regulations for the
implementation of this Decree.
This shall apply to tenant farmers of private
agricultural lands primarily devoted to rice and "Operation Land Transfer" on Indian
corn under a system of sharecrop or lease- occupied by tenants of more than even
tenancy. hectares on rice and corn lands
whether classified as landed estate or not: commenced, and through lexical
The tenant farmer, whether in land classified compulsion and an improved delivery of
as landed estate or not. shall be deemed support services to small farmers, agrarian
owner of a portion constituting a family-size reform deemed to be finally achievable.
farm of five (5) hectares if not irrigated and Under the rice self-sufficiency program
three (3) hectares if irrigated: "Masagana '99," farmers were able to
borrow from banks and purchase three-
In all cases, the landowner may retain an area hectare plots of lands and agricultural inputs
of not more than seven However, the landlord class still found ways
(7) hectares if such landowner is cultivating to circumvent the law. Because only rice
such area or will now cultivate it: lands were the focus of agrarian reform,
some landlords only needed to change
For the purpose of determining the cost of the group to be exempted from the program,
land to be transferred to the tenant farmer such as coconut and sugar lands. Lands
pursuant to this Decree, the value of the land worked by wage labor were also exempt
shall be equivalent to two and one-half (2 1/2) from the program, 0 the landed elite only
times the average harvest of three normal crop had to evict their tenants and hired workers
years immediately preceding the promulgation instead Landlessness increased, which made
of this Decree: it all the more difficult for the program to
succeed because landless peasants were
The total cost of the land, including interest at excluded from the program Many other
the rate of six (6 per centum per annum, shall methods were employed by the elite to find
be paid by the tenant in fifteen (15) years of a way to maintain their power and
fifteen (15) equal annual amortizations domination, which were worsened by the
corruption of Marcos and his cronies.
 POST-1986 AGRARIAN REFORM Under the term of President Ramos, CARP
implementation was speeded in order to
The overthrow of Marcos and the 1987 meet the ten year time frame, despite
Constitution resulted in a renewed interest and limitations and constraints in funding, logistics,
attention to agrarian reform as President and participation of involved sectors. By 1996,
Corazon Aquino envisioned agrarian reform to the Department of Agrarian Reform (DAR)
be the centerpiece of her administration's social distributed only 68.25% of the total area
legislation, which proved difficult because her target to be covered by the program, To
background betrayed her she came from a address the lacking funding and the
family of a wealthy and landed clan that dwindling time for the implementation of
owned the Hacienda Luisita. CARP, Ramos signed Republic Act No. 8532 in
1998 to amend CARL and extend the
On 22 July 1987, Aquino issued Presidential program to another ten years.
Proclamation 131 and Executive Order 229,
which outlined her land reform program. In CARPER AND THE FUTURE OF AGRARIA
1989, the Congress passed Republic Act No. REFORM IN THE PHILIPPINES
6657 or the Comprehensive Agrarian Reform
Law (CARL), which introduced the program with The new deadline of CARP expired in 2008,
the same name (Comprehensive Agrarian leaving 1.2 million ferm beneficiaries and 1.6
Reform Program or CARP), It enabled the million hectares of agricultural land to be
redistribution of agricultural lands to tenant- distributed to farmers. In 2009, President
farmers from landowners, who were paid in Arroyo signed Republic Act No 9700 the
exchange by the government through just Comprehensive Agrarian Reform Program
compensation and allowed them to retain not Extension with Reforms (CARPER), the
more than five hectares. Corporate landowners amendatory law that extended the deadline
were, however, allowed under law to voluntarily to five moreyears Section 30 of the law also
divest a proportion of their capital stock, equity, mandates that any case and/or proceeding
or participation in favor of their workers or other involving the implementation of the provision
qualified beneficiaries instead of turning over of CARP, an amended, which may remain
their land to the government. pending on 30 June 2014 shall be allowed to
proved to it finality and executed even
CARP was limited because it accomplished very beyond such date.
little during the administration of Aquino It only
accomplished 22.5% of land distribution in six From 2009 to 2014, CARPER has distributed a
years owing to the fact that Congress, total of 1 million hectares of land to 900,000
dominated by the landed elite, was unwilling to farmer beneficiaries. After 27 years of land
fund the high compensation costs of the reform and two Aquino administrations,
program. It was also mired in controversy, since 500,000 hectares of Lands remain
Aquino seemingly bowed down to the pressure undistributed. The DAR and the Department
of her relatives by allowing the stock of Environment and Natural Resources (DENR)
redistribution option. Hacienda Luisita are the government agencies mandated to
reorganized itself into a corporation and fulfill CARP and CARPER, but even the
distributed stocks to farmers, combined effort and resources of the two
agencies have proved incapable of fully
achieving the goal of agrarian reform in the
Philippines. The same problems have plagued
its implementation the powerful landed elite
and the ineffectual bureaucracy of the
Philippine government. Until these two
challenges are surmounted, genuine agrarian
reform in the Philippines remains but a dream
to Filipino farmers who have been fighting for
their right to land ownership for centuries
 CARPER AND THE FUTURE OF AGRARIAN REFORM

The new deadline of CARP expired in 2008, leaving 1.2 million farmer beneficiaries and 1.6 million hectares of
agricultural land to be distributed to farmers. In 2009, President Arroyo signed Republic Act No. 9700 or the
Comprehensive Agrarian Reform Program Extension with Reforms (CARPER), the amendatory law that extended the
deadline to five more years. Section 30 of the law also mandates that any case and/or proceeding involving the
implementation of the provisions of CARP, as amended, which may remain pending on 30 June 2014 shall be allowed to
proceed to its finality and executed even beyond such date.

A P P L I C A T I O N

ESSAY AND REFLECTION

We are almost done, I just Nearly there. For this one, I wan
want to see if you truly to know our own perspective
on this subject matter. You are
understand the topic,
free to write your own point of
therefore, I want to know view Compare the LASEDECO of
your opinion on the topic. President Elpidio Quirino vs. the
Compare the Agrarian Reform NARRA of President Ramon
efforts of President Marcos vs. Magsaysay. Choose the best program
President Aquino. Explain the between the two President and
choose which do you think benefitted
difference between the efforts
the Filipino people more. Write in a
of the two presidents and one whole sheet of paper with
choose which has the best minimum of 250 words.
policy. Write in a one whole
sheet of paper with minimum
of 250 words.
 LESSON 3
“Ang pagsusumikap at pagpipilit na kumita
ng ikakabuhay ay nagpapahayag ng
Evolution of Philippine
Taxation

tunay na pagmamahal sa sarili, sa asawa,

anak, kapatid, at kababayan.”
- Andres Bonifacio

TIME FRAME

TAKE THE CHALLENGE!

In this lesson, challenge yourself to:

a. exhibit familiarity to the different taxation in the history of

Philippines;
b. discuss the difference between taxation during the Spanish,
American and Commonwealth and up to present era;

G E T T I N G S T A R T E D

Bring it on, student! You are now on the last lesson of this module. As we
explore through this module, we have learned about different taxation
that the country has experienced from the Spanish era up to the resent.. In
this lesson, you will learn more about the history of taxation in the
Philippines and the experience of the Filipino throughout the years.

A C T I V I T Y

TRUE OR FALSE

Hi student! You are now challenge to identify whether the

statements is true or false. Do youR best and analyse each
sentences to determine the right answer.
 1. In 1986 five percent tax on entities with annual sales or
receipts of less than 5,200,000.
2. The VAT base was also broadened in 1997 to include services.
3. Expanded Value-Added Tax (E-VAT) was signed into law as
Republic Act 9337.
4. Taxes on liquors, cigarettes, forestry products, and mining
were decrease in the year 1939.
5. Collections from tobacco and alcohol in 2015 made up 1.5%
of the Gross Domestic Product.
6. In 1992 Fidel Ramos allowed for continued economic growth.
7. Under the Marcos authoritarian regime, the tax system
remained progressive.
8. From 1959 to 1968, Congress did not pass any tax legislation
despite important changes in the economy.
9. National lottery was established to create more revenue for
the government in 1932.
10. Urbana is a tax on the annual rental value of an urban real
state.

A C T I V I T Y

IDENTIFY AND DESCRIBE

1. Cedula - _________________________________________________
2. Pricipales - ________________________________________________
3. Buhis - ___________________________________________________
4. Alcaldes - _________________________________________________
5. Caidas - ___________________________________________________
6. Fallas - ___________________________________________________
7. Palay - ____________________________________________________
8. Urbana - __________________________________________________
9. Industria - _________________________________________________
10. Cavanes - _________________________________________________
 A N A L Y S I S

1. How does Taxation under the Spanish different from the Taxation under the
American?
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________.

2. Describe in your own words the difference between Taxation during the
Commonwealth Period vs, the Fiscal Policy.
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________.

3. Enumerate the benefits the Filipino experienced under the Spanish and American
leadership.
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________.

A B S T R A C T I O N Later on, the settlements will be handled by

encomenderos who received rewards from
the Spanish crown for their services.
Exempted from payment of tributos were the
TAXATION IN SPANISH PHIL. principales: alcaldes, gobernadores,
cabezas de barangay, soldiers, members of
The Philippines may have abundant natural
the civil guard, government officials, and
resources even before the encroachment of the
Spaniards, but our ancestors were mainly involved vagrants.
in a subsistence economy, and while the
payment of tribute or taxes (buhis/buwis/handug) The Filipinos who were once satisfied with
or the obligation to provide labor services to the agricultural production for subsistence had
datus in some early Filipinos communities in the to increase production to meet the
Philippines may resemble taxation, it is essentially demands of payments and a more intensive
different from the contemporary meaning of the agricultural system had to be introduced.
concept. Later on, half of the tribute was paid in cash
and the rest with produce. This financed the
The arrival of the Spaniards altered this subsistence conquest of the Philippines.
system because they imposed the payment of
tributos (tributes) from the Filipinos, similar to what
had been practiced in all colonies in America. The
purpose is to generate resources to finance the
maintenance of the islands, such as salaries of
government officials and expenses of the clergy.
The difficulty faced by the Spaniards in revenue
collection through the tribute was the dispersed
nature of the settlements, which they solved by
introducing the system of reduccion by creating
pueblos, where Filipinos were gathered and
awarded plots of land to till.
Toward the end of the sixteenth century,
The colonial government also gained
the Manila-Acapulco trade was established
income from monopolies, such the sale of
through the galleons, a way by which the
stamped paper, manufacture and sale of
Spaniards could make sure that European liquor, cockpits, and opium, but the biggest
presence would be sustained. Once a year, of the state monopolies was tobacco, which
the galleon would be loaded up with began in 1781 and halted in 1882. Only
merchandise from Asia and sent to New certain areas were assigned to cultivate
Spain (Mexico), and back. This improved tobacco, which the government purchased
the economy of the Philippines and at a price dictated to the growers, This
reinforced the control of the Spaniards all monopoly made it possible for the colony to
over the country. Tax collection was still create a surplus of income that made it self-
very poor and subsidy from the Spain would sufficient without the need for the situado
be needed through the situado real real and even contributed to the Treasury of
delivered from the Mexican treasury to the Spain.
Philippines through the galleons. This subsidy
stopped as Mexico became independent The colonial government also gained
in 1820. income from monopolies, such the sale of
stamped paper, manufacture and sale of
In 1884, the payment of tribute was put to a liquor, cockpits, and opium, but the biggest
stop and was replaced by a poll tax of the state monopolies was tobacco, which
collected through a certificate of began in 1781 and halted in 1882. Only
identification called the cédula personal. certain areas were assigned to cultivate
This is required from every resident and must tobacco, which the government purchased
at a price dictated to the growers, This
be carried while traveling. Unlike the tribute,
monopoly made it possible for the colony to
the payment cédulas is by person, not by
create a surplus of income that made it self-
family. Payment of the cédula is progressive
sufficient without the need for the situado
and according to income categories. This
real and even contributed to the Treasury of
system, however, was a heavy burden for Spain.
the peasants and was easy for the wealthy.
But because of this, revenue collection Forced labor was character of Spa colonial
greatly increased and became the main taxation Philippines and was required from
source of government income. The Chinese the Filipinos. It proved useful in defending
in the Philippines were also made to pay the territory of the colony and augmenting
their discriminatory cédula which has the labor required by woodcutting and
bigger than what the Filipinos paid. shipbuilding especially during the time of the
galleon trade. Through the polo system,
Two direct taxes were added in 1878 and male Filipinos were obliged to serve, a
imposed on urban income Urbana is a tax burden that resulted in an increase in death
on the annual rental value of an urban real rate and flight to the mountains, which led
estate and industria is a tax on salaries, to a decrease in population in the
dividends, and profits. These taxes were seventeenth century. This changed later on,
universal and affected all kinds of as polos and servicios became lighter, and
economic activity except agriculture which was organized at the municipal level Labor
was exempt to encourage growth. provided was used in public works, such as
the building of roads and bridges. Some
Indirect taxes such as customs duties were were made to serve the municipal office or
imposed on exports and imports to further as night guards.
raise revenue, especially during the
nineteenth century when economic growth
increased exponentially. There were no
excise tax collected by the Spaniards
throughout the years of colonialism.
Males were required to provide labor for 40 The problem with land tax was that land titling
days a year (reduced to 15 days a year in in the rural area was very disorderly: the
1884). They may opt out by paying the fallas appraising of land value was influenced by
of three pesos per annum, which was usually political and familial factors and the
lost to corruption because it was collected at introduction of a taxation system on
the municipal level and were known as agricultural land faced objections from the
caidas or droppings. The polos would be landed elite. Tax evasion was prevalent.
called prestación personal (personal services) especially among the elites.
by the second half of the nineteenth century.
The Internal Revenue Law of 1904 was passed
Taxation in the Philippines during the Spanish as a reaction to the problems of collecting
colonial period was characterized by the land tax. It prescribed ten major sources of
heavy burden placed on the Filipinos, and revenue: (1) licensed taxes on firms dealing in
the corruption of the principales, or the alcoholic beverages and tobacco, (2) excise
former datus and local elites who were co- taxes on alcoholic beverages and tobacco
opted by the Spaniards to subjugate and products, (3) taxes on banks and bankers, (4)
control the native on their behalf. The document stamp taxes, (5) the cedula, (6)
principales who were given positions such as taxes on insurance and insurance companies,
cabezas de barangay or alcalde in the local (7) taxes on forest products, (8) mining
government were able to enrich themselves concessions, (9) taxes on business and
by pocketing tributos and/or fallas, while the manufacturing, and (10) occupational
peasants were left to be abused. Taxation licenses.
appeared progressive but the disparity
between the less taxes principles and the The cédula went through changes in the new
heavily taxed peasants made the rich richer laws the rate ws fixed per adult male, which
and the poor poorer. resulted in a grant decline in revenues. In
1907, some provinces were authorized to
double the fee for the dula to support the
TAXATION IN AMERICAN PHIL. construction and maintenance of roads. The
industria tax was levied on the business
community and became a highly complex
The Americans who acquired the Philippines
system that assigned certain tax to an
aimed to make the economy self-sufficient by
industrial or commercial activity according to
running the government with the smallest
their profitability. The new act also imposed a
possible sum of revenue and create surplus in
percentage tax on sales payable quarterly.
the budget. From 1898 to 1903, the Americans
followed the Spanish system of taxation with
some modifications, noting that the system
introduced by the Spaniards were outdated
and regressive. The military government
suspended the contracts for the sale of opium.
lottery, and mint charges for coinage of money.
Later on, the urbana would be replaced by tax
on real estate, which became known as the
land tax. The land tax was levied on both urban
and rural real estates.

In 1913, the Underwood Simmons Tariff Act was

passed, resulting in a reduction in the revenue of
the government as export taxes levied on sugar,
tobacco, hemp, and copra were lifted. To make
up for the loss, then Governor General Francis
Burton Harrison urged that tax receipts be
increased to make up for the loss. Minor changes
were made to the 1904 Internal Revenue Act such
as the imposition of taxes on mines, petroleum
products, and dealers of petroleum products and
tobacco.
 As World War I reached the Philippine shores,
COMMON WEALTH PERIOD economic activity wan put to stop and the
New measures the legislation were Philippines bowed to a new set of
introduced to make the taxation system administrators, the Japanese. The Japanese
appear more equitable during the military administration in the Philippines
Commonwealth. Income tax rates were during World War II immediately continued
increased in 1936, adding a surtax rate on the system of tax collection introduced
individual new incomes in excess of 10,000 during the Commonwealth, but exempted
pesos. Income tax rates of corporations the articles belong to the Japanese armed
were also increased. In 1937, the cedula tax forces. Foreign trade fell and the main
was abolished, which appeared to be a sources of taxation came from amusements,
progressive move; but in 1940, a residence manufacture, professions, and business
tax was imposed on every citizen aged 18 licence. As the war raged, tax collection
years old and on every corporation was a difficult task and additional income
of the government were derived from the
sales of the National Sweepstake and sale of
government bonds.

In 1939, the Commonwealth government

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 FISCAL POLICY FROM 1946
surtax on income was replaced by a single UP TO PRESENT
tax at a progressive rate.
2. Personal exemptions were reduced.
3. Corporation income tax was slightly The impact of the war on the Philippine
increased by introducing taxes on inherited economy was effectively disparate, as Manila,
estates or gifts donated in the name of dead the capital, was razed to the ground while the
rest of the Philippines was relatively untouched.
persons
But the highly agriculture based economy was
4. The cumulative sales tax was replaced by a
disrupted. The United States may have
single turnover tax of 10% on luxuries forestry
declared the Philippines independent, but an
products, and mining were the country needed rehabilitation fundo from
5. Taxes on liquors, cigarettes, increased the United States, the dependency of the
6. Dividends were made taxable. Philippines to the American was an opportunity
to be taken advantage of by the former
The introduced tax structure was an colonial administrators. The economic situation
improvement of the earlier system introduced was no problematic that by 1948. there was a
by the Americans, but still remained inequitable. severe lack of funds in many aspects of
The lower con still felt the bulk of the burden of governance, such an the military and
taxation, while the upper class, the landed elite education sector. Na efforts were made to
or the people in political positions, were able to improve tax collection and the United States
maneuver the situation that would benefit them advised the adoption of direct taxation. The
more. The agriculture sector was still taxed or to administration of President Manuel Roxas
promote growth, but there was no incentive for declined the proposal because it did not want
industrial investment to take root and develop to alienate its allies in Congress. .
The impetus for economic growth came during Under the Marcos authoritarian regime, the
the time of President Elpidio Quirino through the tax system remained Defensive. During the
implementation of import and exchange latter part of the Marcos years 19811985 the
controls that led to import substitution tax system was still heavily dependent on
development. This policy allow for the expansion Indirect taxes, which made up 70% of total
of a viable manufacturing sector that reduced tax collection. The tax system also remained
economic dependence on imports. New tax unresponsive. Taxes grew at an average
measures were also passed, which included annual rate of 15% and generated a low tax
higher corporate tax rates that increased yield. Tax effort, defined as the ratio
government revenues-tax revenue in 1953 between the share of the actual tax
increased twofold compared to 1948, the year collection in gross domestic product and
when Quirino first assumed presidency. predictable taxable capacity, was at a low
10.7%.
While the succeeding presidencies of
Magsaysay, Garcia, and Macapagal promised
to study the tax structure and policy of the
country through the creation of a Tax
Commission in 1959 by means of Republic Act
No. 2211) to make way for more robust and
efficient tax collection scheme fiscal policy
remained regressive, characterized by the
overburdening of the lowest classes while the
landed elite who held business interests were in
Congress to ensure that taxes would not be
levied to them who belonged to the Dort war
higher class of society. The period of the post
war republic also saw rise in corruption. From
1969 to 1968, Congress did not pass any tax
legislation despite important changes in the
economy and the vested interests of Filipino As Corazon Aquino took the helm of the
businessmen in Congress would manifest in government after the EDSA Revolution, she
many instances such as the rejection of taxes on reformed the tax system through the 1986
imports. Indirect taxation still contributed to Tax Reform Program. The aim was to
three quarters of tax revenues and the Omnibus improve the responsiveness of the tax
Tax Law of 1969 did not increase the ratio of system promote equity by ensuring that
income tax to general tax revenue. Collection similarly situated individuals firm bear
of taxes remained poor, tax structure was still the same tax burden, promote growth by
problematic and much of public funds were lost withdrawing or modifying taxes that reduce
to corruption, which left the government incentives to work or produce, and improve
incapable of funding projects geared toward tax administration by simplifying the tax
development. system and promoting tax compliance.

A major reform in the tax system introduced

under the term of Aquino was the
introduction of the value-added tax (VAT),
with the following features:

1. uniform rate of 10% on sale of domestic

and imported goods and services and zero
percent on exports and foreign currency
denominated sales;
2. ten (10) percent in lieu of varied rates
applicable to fixed taxes (60 nominal rates),
advance sales tax, tax on original sale,
subsequent sales tax, compensating tax,
miller's tax, contractor's tax broker's tax, film
lessors and distributor's tax excise tax on
solvents and matches, and excise tax on
processed videotapes;
3 two percent tax on entities with annual sales Greater political stability during the
or receipts of less than 5,200,000 ; administration of Fidel Ramos in 1992
4. adoption of tax credit method of allowed for continued economic growth.
calculating tax by subtracting tax on inputs The Ramos administration ventured into
from tax on gross sales; its own tax reform program in 1997
5. exemption of the sale of basic commodities
through the Comprehensive Tax Reform
such as agriculture and marine food products
in their original state. price-regulated
Program, which was implemented to (1)
petroleum products and fertilizers and; make the tax system broad-based,
6. additional 20% tax on non essential articles simple, and with reasonable tax rates (2)
much jewelry, perfumes, toilet waters, yacht, minimise tax avoidance allowed by
and other vessels for pleasure and sports. existing laws and loopholes in the system
(3) encourage payments by increasing
The VAT law was signed in 1986 and put to tax exemptions levels, lowering the
effect in 1958. While it was reliable source of highest tax rates, and simplifying
revenue for the government, new tax laws procedure; and (4) rationalize the grant
would reduce its reliability as legislation of tax incentives, which was estimated to
exemptions grew. be worth 531.7 billion pesos in 1994
Along with tax reforms came the
administrative reforms, such an the
The VAT base was also broadened in
restructuring of the Department of Finance 1997 to include services through Republic
and its attached agency, the Bureau of Act 7716. The features of the improved
Internal Revenue (BIR) through the Executive VAT law were as follows:
Order 127. Tax collection and tax audits were 1. Restored the VAT exemptions for all
intensified; computerization was introduced; cooperatives (agricultural electric, credit
and corruption was relatively reduced, which or multipurpose, and other) provided that
improved the trust in the BIR in general. As a the
result of the tax reform of the Aquino share capital of each member does not
administration, both tax and revenue effort exceed 515,000 pesos.
rose, increasing from 10.7% in 1985 to 15.4% in 2. Expanded the coverage of the term
1992.
"simple processes by including broiling
and roasting, effectively narrowing the
tax base for food products, 3. Expanded
the coverage of the term "original state"
by including molasses
4. Exempted from the VAT are the
following:
• Importation of meat
• Sale or importation of coal and natural
gas in whatever form or state
• Educational services rendered by
private educational institutions duly
accredited by the Commission on
Higher Education (CHED)
• House and lot and other residential
dwellings valued at 51 million and
below, subject to adjustment using the
Consumer Price Index (CPI)
• Lens of residential units with monthly
rental for unit of not more than 58,000,
subject to adjustment using CPI.
• Sale, importation, printing, or
publication of books and any
Fidel V Ramos, 12th President of the Philippines newspaper.
 As President Benigno Aquino III
succeeded President Arroyo in 2010, he
promised that no new taxes would be
imposed and additional revenue would
have to come from adjusting existing
taxes. The administration ventured into
the adjustment excise tax on liquor and
cigarettes or the Sin Tax Reform,
motivations for which was primarily fiscal,
public health and social order. related
considerations. Republic Act 10351 was
passed, and government revenues from
alcohol and tobaccó excise taxes
increased. Collections from
tobacco and alcohol in 2015 made up
1.1% of the Gross Domestic Product
The succeding term of President joseph and the improvement in tax collection
Estrada in 1998 was too shop to constitute resulted in the Philippines receiving
any change in the tax system. Then Vice a credit rating upgrade into investment
President Gloria Macapagal-Arroyo was grade status. The Sin Tax Reform
swept to power through another EDSA was an exemplar on how tax reform
Revolution. As president, she undertook could impact social services as it
increased government spending with mom
allowed
adjusting tax collections. This resulted in
large deficits from 2002 to 2004 The
for the increase of the Department of
government had to look for additional Health budget (triple in 2015) and
sources of revenue, and in 2005 the free health insurance premiums for the
Expanded Value-Added Tax (E-VAT) wan poor people enrolled in PhilHealth
signed into law as Republic Act 9337. This increased from 55.2 million in 2012 to
expanded the VAT be, subjected to VAT 515.4 million in 2015).
energy products such coal and petroleum
products and electricity generation, The administration of the new President
transmission, and distribution. Select Rodrigo Duterte promised ax reform,
professional services were also taxed. In particularly in income taxes as it vowed
February 2006, the VAT tax rate was also to lower income tax rates shouldered by
increased from 10% to 12%.
working Filipinos. The present income tax
scheme of be country is the second
highest in Southeast Asia and the current
laws n income taxes were outdated as
they were drafted two decades ago T
proposed tax reform also seeks to limit
VAT exemptions and increase excise
taxes on petroleum products and
automobiles. It is hoped that reforms in
the country's tax policy will result in the
much-desired economic development
at will be felt even by the lowest classes
in society.
A P P L I C A T I O N

ESSAY AND REFLECTION

We are almost done, I Nearly there. For this one, I wan to

just want to see if you know our own perspective on this
subject matter. You are free to
truly understand the
write your own point of view.
topic, therefore, I want Compare the Taxation during the
to know your opinion on Spanish colonization vs. the
the topic. Identify at Taxation during the American
least two problems colonization. Choose which
concerning of Philippine taxation policy benefitted to the
taxation issues today. Filipino more and explain your
answer and choose which do you
Try to connect the
think benefitted the Filipino people
present identified issues more. Write in a one whole sheet
in the past. Write in a of paper with minimum of 250
one whole sheet of words.
paper with minimum of
250 words.
 MODULE ASSESSEMENT

Building Vocabulary
Direction: On the space provided, write the term that best matches each definition
given below. Each correct answer corresponds to one point.

_________1. Government under President Marcos.

_________2. The promise of United State Congress of granting Filipinos’

independence.

_________3. The type of constitution supported by President Duterte in 2016

presidential election
_________4. The system requiring Filipinos to render services to their encomenderos.

_________5. Peasant rebellion in Central Luzon that lasted for two days.
Essay
Direction: On the space provided, answer the open-ended question below. Limit
your essay to four to six sentences only. For you to be guided, please see the
attached rubrics found at the end of this module.
1. How would you describe the difference between the Malolos Constitution vs the
1987 Constitution?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________.

2. How would you describe the difference between Agrarian Reform of the
American vs. of President Marcos?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________.

3. How would you describe the difference between the constitution under Martial
Law vs.. After the martial law?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________________________________________________________________________________.
 MODULE SUMMARY

Hello student! It has been a long journey exploring through this module.
Now, you are about to close this module and learn new lesson as you
go on through this book. Further, I will take this opportunity to wrap up all
the lesson we have learn. These are some important highlights in this
module:
▪ The Constitution of the Philippines, the supreme law of the Republic
of the Philippines, has been in effect since 1987
▪ Agrarian reform is essentially rectification of the whole system of
agriculture, an important aspect of Philippine economy because
nearly half of the population is employed in the agricultural sector,
and most citizens live in rural areas.
▪ Taxation is a reality that all citizens must contend with for the
primary reason that governments raise revenue from the people
they govern to be able to function fully.

REFERENCE

• Agricultural Land Reform Code of 1963 (Republic Act 3844).

Comprehensive Agrarian Reform Law of 1988 (Republic Act
6657). Decreeing the Emancipation of Tenants from the Soil
(Presidential Decree No. 27).
• Land Reform Act of 1955 (Republic Act 1400).
• National Heroes Comission. (1964). Letters Between Rizal and
Family Members. Manila: National Heroes Commission.
• National Historical Institue. (1997). Documents of the 1898
Declaration of Philippine Independence, the Malolos
Constitution and the First Philippine Republic. Manila;
National Historical Institute.
• Nolledo, J. (1999). Principles of Agrarian Reform,
Cooperatives and Taxation. Mandaluyong City: National
Book Store
• Philippine Organic Act of 1902.
• Querol, M. (1974). Land Reform in Asia. Maninla: Solidaridad
Publishing House.
•
 RUBRICS

Excellent Good Needs Improvement Poor F

Essay contains a clear An argument is Author attempts, but No attempt is made to P
argument—i.e., lets the present, but reader fails, to make an articulate an argument.
reader know exactly what must reconstruct it argument (e.g., starts L
the author is trying to from the text. with a rhetorical A
communicate. question/statement or
anecdote that is never G
put into context).
I

M
Provides compelling and Provides necessary Not enough evidence is Either no evidence is
accurate evidence that evidence to convince provided to support provided, or there are
convinces reader to accept reader of most aspects author’s argument, or numerous factual
main argument. The of the main argument evidence is incomplete, mistakes, omissions or
importance/relevance of all but not all. The incorrect, or oversimplifications.
pieces of evidence is clearly importance/ relevance oversimplified. There is little or no
stated. There are no gaps of some evidence Information from lectures mention of information
in reasoning—i.e., the presented may not be and readings is not from lectures and
reader does not need to totally clear. Reader effectively used. readings.
assume anything or do must make a few
additional research to mental leaps or do
accept main argument. some additional
research to fully
accept all aspects of
main argument.