Divine Word College of San Jose

San Jose, Occidental Mindoro

College Department

Module 7
 Lesson 1
1. Title: Readings in Philippine History

2. Scope: Social, Political, Economic and Cultural Issues in Philippine History

3. Overview: This module is dedicated to enduring issues in Philippine society, which

history could lend a hand in understanding, and hopefully, proposing solutions.

4. Objectives:
 To analyze social, political, economic and cultural issues in the Philippines using
the lens of history.
 To recognize that the problems of today are consequences of decisions and events
that happened in the past.
 To understand several enduring issues in Philippine society through history.

5. Discussion of the Topics

Evolution of the Philippine Constitution

The constitution is defined as a set of fundamental principles or established
precedents according to which a state or other organization is governed, thus, the word
itself means to be part of whole, the coming together of distinct entities into one group,
with the same principles and ideals. These principles define the nature and extent of
government.
The Constitution of the Philippines, the supreme law of the Republic of the
Philippines, has been in effect since 1987. There were only three other constitutions
that have effectively governed the country:
the 1935 Commonwealth Constitution,
the 1973 Constitution, and
the 1986 Freedom Constitution.
However, there were earlier constitution attempted by Filipinos in the struggle
to break free from the colonial yoke.
1897: Constitution of Biak-na-Bato
The Constitution of Biak- na-Bato was the provisionary Constitution of the
Philippine Republic during the Philippine revolution, and was promulgated by the
Philippine Revolutionary- Government on l November 1897. The constitution,
borrowed from Cuba was written by lsabelo Artacho and Fe1ix Ferrer in Spanish. and
later on. translated into Tagalog.

The organs of the government under the Constitution are:

(1) the Supreme Council, which is vested with the power of the Republic,
headed by the president and four department secretaries, the interior, foreign affairs,
treasury , and war:

(2) the Consejo Supremo de Gracia Y -Justicia (Supreme Council of Grace and
Justice). which is given the authority’ to make decision and affirm or disprove the
sentences rendered by other courts, and to dictate rules for the administration of justice:
and

(3) the Asamblea de Representatives (Assemble de Representatives), which was

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 Constitution of’ Biak- na- Bato was never fully implemented, since a
truce, the Pact of’ Biak-na-Bato, was signed between the Spanish andd the Philippine
Revolutionary Army.

Primary Source: Preamble of the Biak na Bato Constitution

The separation of the Philippines from the Spanish monarchy and their formation into an
independent state with its own government called the Philippine Republic has been the end
sought by the Revolution in the existing war, begun on the 24th of August, 1896.

1896: Malolos Revolution

After the signing of the truce, the Filipino revolutionary leaders accepted a payment from
Spain and went to exile in Hongkong. Upon the defeat of the Spanish to the American in the
battle bay on May 1898, the United States Navy transported Aguinaldo back to the Philippines.
The newly reformed Philippine revolutionary forces reverted to the control of Aguinaldo, and the
Philippine Declaration of Independence was issued on 12 June 1898, together with several
decrees that formed the First Philippine Republic. It was the first Republican Constitution in
Asia.
The Malolos Congress was elected, which selected a commission to draw up a draft constitution
on 17 September 1898, which was composed of wealthy and educated men.

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
and insure the benefits of liberty. imploring the aid of the Sovereign Legislator of
the Universe for the attainment of these ends, have voted, decreed, and sanctioned
the following political constitution.”

As a direct challenge to colonial authorities of’ the Spanish empire, the

sovereignty was retroverted to the people. a legal principle underlying the Philippine
Revolution. The people delegate governmental functions to civil servants while they
retained actual sovereignty. The 27 articles of Title IV detail the natural
rights and popular sovereignty of Philippines, the enumeration of which does not
imply the prohibition of' any other rights not expressly stated. Title 111, Article V,
also declares that. the State recognizes the freedom and equality of all beliefs. as well
as the separation of Church and State. There are direct 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, 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 least 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 und interpellation, and the right of impeaching the president, cabinet
members, the chief justice of the Supreme Court, and the solicitor- general. A
permanent commission of seven, elected by the assembly, and granted specific
powers by the constitution was to sit during the intervals between sections of the
assembly.
Executive power was vested n the president, and elected by a constituent
assembly of the Assembly of Representative and special
representatives. The president will serve a term of four years without
re- election. There was no vice president, and in case of a vacancy, a president
was to be selected by the constituent assembly.
The 1899 Malolos Constitutions was never enforced due to the ongoing
war. The Philippine was effectively a territory of the United States upon the
signing of the Treaty of Paris between Spain and the United States, transferring
sovereignty of the Philippines on 10 December 1898.
1935: The Commonwealth Constitution
It is worth mentioning that after the Treaty of Paris, the Philippine was subject to the
power of the United States of America, effectively the new colonizers of the country. From l898
to 1901, the Philippines with be placed under a military government, until a civil government
will be put into place.
Two acts of the United States Congress were passed that may be considered to have
qualities of constitutionality.
First is the Philippine Organic Act of 1908, the first organic law for the Philippine Island
that provided for the creation of' a popularly elected Philippine Assembly, and specified that
legislative power would be vested in a 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 Commissioner of the Philippines as representative to the United States House of
Representatives.
The second Act that functioned as a constitution is the Philippine Autonomy Act of 1916,
commonly referred to aa 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 knee and its members elected by the Filipino voters, the first truly elected national
legislature. It was also this Act that explicitly’ declared the purpose of the United States to end
their sovereignty over the Philippines and recognize Philippine independence as soon as a stable
government can be established.
In 1932 with the efforts of the Filipino independence mission led by Sergio Osmena and
Manue1 Roxas, the United States Congress passed the Hare-Hawes-Cutting Act with the premise
of granting Filipinos independence. The bill we opposed by then Senate President Manuel L.
Quezon and consequently, rejected by the Philippine Senate.
By 1934, another law, the Tydings McDuffie Art, also known as the Philippine
Independence Act. was passed by the United States Congress that provided authority and defined
mechanisms for the establishment of a formal constitution by a constitutional convention. The
members of the convention were elected and held their first meeting on 30 July 1934, with Claro
M. Recto unanimously elected as president.
The constitution was crafted to meet the approval of the United States government, and to
ensure that the US would live up to its promise to grant independence to the Philippines.
Primary Source: Preamble of the l935 Commonwealth
The Filipino people, imploring the aid of Divine Providence, in order to establish a
government that shall embody their ideals, conserve and develop the patrimony of the nation,
promote the general welfare, and secure to themselves and their posterity the blessings of
independence under a regime of justice, liberty, and democracy, do ordain and promulgate this
constitution.
1940 – to have a bicameral Congress composed of a Senate and a House of Representative, as
well as the creation of an independent electoral commission, and limited the term of office of the
president and vice-president to four years, with one re-election.
February 8, 1935 – the draft of the constitution was approved by the constitutional convention
March 25, 1935 – was ratified by then US President Franklin B. Roosevelt
September 1935- elections were held and Manuel L. Quezon was elected President of the
Commonwealth

1973: Constitutional Authoritarianism

In 1965, Ferdinand G. Marcos was elected president, and in 1967, Philippine Congress
passed a resolution calling for a constitution to change the 1935 Constitution. Marcos won the re-
election in 1969, in a bid boosted by campaign• overspending and use of government funds.
Elections of the delegates la the constitutional convention were held on 20 November
1970, and the convention began formally on 1 June 1971, with former President Carlos P.
Garcia being elected president.
Unfortunately, he died, and was succeeded by another former president. Diosdado
Macapagal.
Before the convention finished its work, Martial law was declared. Marcos cited a
growing communist insurgency as reason for Martial law, which provided for in the 1935
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
a six-year term.

President – to be elected as the symbolic and ceremonial head of state chosen from the members
of the National Assembly
- would serve a six-year term and could be re-elected to an unlimited number of
terms
-President Marcos – issued Presidential decree No. 73 setting the date of the plebiscite to ratify
or reject the propose constitution on November 30, 1973.
◦ 1976 – Citizen Assembles – decided to allow the continuation of Martial Law
◦ EDSA Revolution – Edsa People Power Revolution of 1986
◦ His opponent in the snap elections, Corazon Aquino was installed as president on
25 February 1986.
1987: Constitution After Martial Law
President Corazon Aquino’s government had three options regarding the constitution:
revert to the 1935 Constitution, retain the 1973 Constitution and be granted the power to make
reforms, or start anew and break front the vestiges of a disgraced dictatorship.” They decided to
make a new constitution to that, according to the president herself, should be “truly reflective of
the aspirations and ideals of the Filipino people.”

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 l986, a constitutional
convention was created, composed of 48 members appointed by President Aquino from varied
backgrounds and representations, the convention drew up a permanent constitution, largely
restoring the set-up abolished by Marcos in 1972, but with new ways to keep the President in
check. a reaction to the experience of Marcos rule. The new constitution was officially adopted
on 2 February 1987.
The Constitution begins with a preamble, and eighteen self-contained articles. It established
the Philippines as a “democratic Republican State' where “sovereignty resides in the people and
all government authority emanates from them. It allocates governmental powers among the
executive. legislative, and judicial branches of the government.
◦ Executive – headed by president and his cabinet
◦ The president is the head of the state and the chief executive but his power is
limited by significant checks from the two other co-equal branches of
government.
◦ Legislative – resides in a Congress divided into two Houses the Senate and
Representatives
◦ - 24 senators are elected at large by popular vote, and can serve no more than two
consecutives six-year terms. The house composed of district representatives representing
particular geographic area and makes up around 80% of the total number of
representatives. There are 234 legislative districts in the Philippine that elect their
representatives to serve three-year terms.
◦ 1987 Constitution – created a party-list system to provide spaces for the participation of
under-represented community sectors or groups. Party-list representative may fill up not
more than 20% of the seats in the House.

Attemps to Amend or Change the 1987 Constitution

The 1987 Constitution provides for three methods by which the Constitution can be amended,
all requiring ratification by a majority vote in a national referendum.
These methods were Constituent Assembly, Constitutional Convention and People's
Initiative. Using these modes, there were efforts to amend or change the 1987 Constitution,
starting with the presidency of Fidel V. Ramos who succeeded Corazon Aquino

◦ Federalism in the Philippines was supported by President Duterte in the 2016

presidential elections, saying that it will evenly distribute wealth in the Philippines
instead of concentrating it in Manila, the capital of the country.
◦ As a form of government, a central governing authority and constituent political units
constitutionally share sovereignty.
◦ Applied to the Philippines, the country will be broken into autonomous regions. Each
region will be further divided into local government units
◦ The regions will have the primary responsibility of industry development, public safety
and instruction, education, healthcare, transportation, and many more.
◦ Each region will also take charge of their own finances, plans for development and laws
exclusive to their area.
B. Agrarian Reform
“When land rights are secure, the cycle of poverty is broken.”
Agrarian reform – is essentially the rectification of the whole systems of agriculture, an
important aspect of the Philippines economy because nearly half of the population is employed
in the agricultural sector, and most citizens live in rural areas.
Agrarian reform is redistribution of lands, regardless of fruits produced or crops, to la
landless farmers and regular farmworkers, irrespective of tenurial provisions to include the
totality of factors and support services designed to elevate the economic status of the
beneficiaries.
Essential element of the Agrarian Reform includes:
1. land reform where measures concerning the security of tenure
2. the abolition of tenancy
3. imposition of ceilings and many more
Land reform- is an integrated set of gauge designed to eliminate hindrance into economic and
social development arising out of inadequacy in the agrarian structures.
Views of Agrarian Reform
Economic View
 The position of agriculture in the national economy-although there is a series of technical
programs from the government, still our economy relies heavily on the agricultural sector.
It forms the predominant industry in the Philippines
A high proportion of the total working population employed in agriculture and a significant
percentage contribution to the gross domestic product (GDP) comes from agriculture.
Agriculture – is the essential component of economic structure.

Agrarian reform – was strengthen to create an economic environment that will encourage
farmers to produce more and market more of what they produce.
Social-Cultural view

The Agrarian Reform had resulted in favorable socio-cultural changes as follows:

a. A change from a self-subsistent mindset to one of surplus for selling. The farmers started
putting all their efforts on the farm because they own the land
b. Social order in the farmlands started to improve significantly. The farmers became more
concern about the need to keep peace and stability within the community so that they
could continuously enjoy the growth of benefits on the farm.
c. Farmers became active in practicing leadership roles. After land reform, farmers began
forming associations and stood in equal footing with their former lessor in meetings and
social gatherings.
d. As land reform enhanced agricultural productivity and consequently increased net family
incomes, the farmers were able to send their children to school. They widened their
contacts with the outside world trough frequent trips to markets and other places.
Agrarian reform – also promoted modern outlook among farmers, which include prejudiced and
modern family planning programs and also cognizance of the economic alternatives in the urban
and industrial sectors.

Religious view
Based on the biblical teachings, God is the owner of the earth and that He made it all for
his children.
Majority of the Filipino masses are longing for the possession of the land. Immersed in
the chains of poverty, they yearned for the ownership of land. These desires were so strong that it
resulted in many revolts.
Objectives of Agrarian reform:
  The main idea was to put an end to problems with land ownership. Aim to bring about
harmony between the rural people and the urban residents are also called for.
 To bringing stability in the political set up of the country is also regarded as one of the
objectives of agrarian reform. The political set-up of the country plays an important role.
If there is political unrest, leaders would usually concentrate on resolving the crisis,
instead of dealing with land conflicts.
 The socio agrarian reform includes bringing about equality in terms of opportunities,
income as well as wealth.
 Agrarian reform programs are mainly designed to facilitate agrarian reform project like
land acquisition, land distribution, land management, and forty the growth of feasible
agrarian reform communities.
Comprehensive Agrarian Reform Program (CARP)
The Comprehensive Agrarian Reform Program (CARP), otherwise known as Republic
Act No. 665, is the legal basis of CARP, which aims to promote social justice and
industrialization as well as providing the mechanism for its implementation and other purposes –
signed on June 10, 1988, by President Corazon C. Aquino.
Likewise, it pertains to the redistribution of public and private farmlands to farmers and
farmworkers who are landless, irrespective of tenurial arrangement. CARP’s vision to have
equitable land ownership with empowered agrarian reform beneficiaries who can successfully
manage their social and economic development to have a better quality of life.
The essential programs of CARP are Land Tenure Improvement, which seeks to hasten
the distribution of lands to landless farmers. Likewise, the Department offers Support Services to
the inheritor such as infrastructures facilities, credit assistance program, marketing assistance
program, and technical support programs.

Coverage of CARP
 Government-owned lands dedicated to, or suitable for agriculture;
 Disposal Alienable and disposable lands of the public domain dedicated to, or suitable for
agriculture.
 Public domain lands more than the specific limits as determined by Congress; and
 Private lands dedicated to, or suitable for agriculture regardless of the agricultural
products raised or that can raise thereon.
History of Agrarian Reform
Philippines – developed an organization for their communities
 The system of barangay, which of 30-100 families, which are governed by
different chiefs.
 Every member of the community, regardless of status, had access on the land and
common shares of resources.
  They believed in and exercised the concept of stewardship; where the relationship
between man and nature is essential
 Land cultivation was done basically by slash and burn method, or the kaingin
wherein land was cleared by burning the bushes before planting the crops or
either land was cultivated and lay waste before planting.
 On the other hand, food production intended for family consumption only at first
but later on, neighboring communities were engaged in barter trade, exchanging
their goods with others.
 Some other traded their agricultural products with luxury items of some foreign
traders like the Chinese, Arabs and Europeans.
1951- they introduced pueblo an agriculture system wherein the native rural communities were
organized into the pueblo, and each Christianized native family was given four to five acres of
land to cultivate. Thus, there is no landless class.
March 29, 1942 – was organized the HUKBALAHAP (Hukbong Bayan Laban sa mga Hapon)
of the peasants and workers, as an anti-Japanese group
 Some of the Agrarian Reform laws had passed during the administration of Manuel L.
Quezon: RA 4054 or the Rice Tenancy Law
RA 4054 or the Rice Tenancy Law – was the first law on crop sharing which legalized the 50-50
shared between landlord and tenant with corresponding support to tenants protecting them
against abuses of landlords.
- This law implemented because most of the municipal councils were composed of
powerful hacienderos and big landlords.
RA No. 34 – passed during the administration of Manuel Roxas and its constitutes to establish a
70-30 sharing arrangement between landowners and tenant
70% of the harvest – will favor the person who shouldered the cost for planting, harvesting, and
work animals
Executive No. 355, the Land Settlement Development Corporation (LASEDECO) was
established by Elpidio Quirino’s administrations to speed-up and expand the serf resettlement
program of the government
President Magsaysay – elected as the President of the country, he convinced the elite controlled
congress to pass several laws to improve the land reform situation in the country

August 8, 1963 – it was enacted the most comprehensive agrarian reform legislation,
Agricultural Land Reform Code or RA No. 3844) during the time of President Diosdado
Macapagal
President Diosdado Macapagal – considered as the ‘father of Agrarian Reform
President Marcos – signed into law the Code of Agrarian Reforms of the Philippines or RA No
6389 and its companion bill RA N0. 6390
The code of Agrarian Reforms or RA No. 6389 – governed the implementation of the agrarian
reform in the Philippines
Pres Fidel V Ramos – recognized for bringing back support of critical stakeholders of CARP by
bridging specific policy gaps on land evaluation, land acquisition and distribution, and for
tapping more resources to help implement the program
- The Magkabalikat para sa Kaunlarang Agraryo (Magsasaka) which lauched which
directed for the investors to bring in capital, technology, and management support
while farmers will contribute, at most, the use of their land itself.
Pres. Gloria Macapagal Arroyo – has adopted the BAYAN-ANIHAN concept as the
implementing framework for CARP. Bayan means people and Anihan means harvest, and
Bayanihan means working together for the successful implementation of agrarian reform.
Pres. Noynoy Aquino, the DAR which is lead agency for CARP implementation is bent on
sustaining the gains of agrarian reform through its three major components
- Land Tenure Improvement (LTI)
- Program Benefeciaries Development(PBD)
- Agrarian Justice Delivery(AJD)

Agrarian Reform Laws and Acts in the Philippines

An act defining a land tenure policy providing for an instrumentality to carry out the
policy and appropriating funds for its implementation.
Land Reform Act of 1995 (R.A 1400)
The Main features of the R.A. 1400 are the following:
a. Reduction of large landholding and consolidation of smaller, uneconomic holdings into
plots of adequate size.
b. Resettlement of tenants
c. Provision credit facilitates which are sufficient for the smaller landholders
d. Reduction of rental and interest rates in order to provide security for those who would
remain tenants
e. Securing land titles for smallholders
f. Reform of the property tax structure.
Revised Agricultural land Reform Code (RA 6389) – an act amending Republic Act 3844 (also
known as the Agricultural Code and for other purposes).
Upon pressure of peasant organization demonstration who picked for 84 days in front of the
legislative building, Congress passed further amendments to the Code
The main features of the new amendments were:
1. Abolition of personal cultivation and conversion to the residential subdivision as grounds
for the ejectment of tenants
2. Automatic conversion of all share-tenants in the Philippines to leasehold tenants with
some exceptions and qualifications.
3. Creation of the Department of Agrarian Reform
4. Right of the tenant on land converted to residential subdivisions to demand a disturbance
compensation equivalent to five times the average gross harvest for the past three
agricultural years.
5. Increasing financing for the land reform program
6. Crediting of rentals in favor of the tenant against the just compensation that he would
have to pay in case the land was expropriated by the government for resale to the tenant.

Lands covered by the Code

a) Tenanted areas – the areas worked by the tenant-farmer either under sharecropping or
leasehold
b) Landed estates – private agricultural lands acquired by the Department of Agrarian
reform through the Land Bank for redistribution to the tenant tillers both under the code.
c) Old settlements – projects developed by the Department of Agrarian Reform from the
public domain and are still under its administration and management.
d) Proposed settlements – the estimated areas of the public domain either earmarked for
settlement purposes or have potentials for such purposes.

Comprehensive Agrarian Reform Law (RA. 6657) – an act instituting a comprehensive

agrarian reform program to promote social justice and industrialization, providing the
mechanism for its implementation and other purposes.

The lands covered by CARL

a. After the approval of R.A. 6657, there should be no reclassification of forest or mineral
lands to agricultural lands shall be allowed or until the Congress acts upon the said law.
Taking into account ecological, developmental and equity considerations shall have
determined by the law, the specific limits of the public domain.
b. All lands of the public domain over the specific limits as determined by Congress in the
preceding paragraph.

Qualified beneficiaries – the lands covered by the CARL shall be distributed definitely to
landless residents of the same barangay, or in the absence thereof, landless residents of the
same municipality in the following order of priority;
 a) Agricultural lessees and share tenants
b) Regular farm workers
c) Seasonal farm workers
d) Other farm workers
e) Actual tillers or occupants of public lands
f) Collectives or cooperatives of the above beneficiaries
g) Others directly working on the land
C. Taxation
“The lifeblood of any state.”
Taxation – is the inherent power of the state, acting through the legislature to impose and collect
revenues to support the government and its recognized objects; the power of the state to collect
revenues for public purposes only.
Taxation – is anchored on the benefits-received principles (Villegas & Abiola, 2010 p. 199);
that’s is, its burden must be shouldered by those who enjoy the government’s benefits and
services. It must be noted, however, that not all people can afford to pay taxes. Hence it is just
that taxes must be based on an individual’s ability to pay.
A government cannot function without the necessary funds. It is, therefore, necessary for the
people to pay taxes.
As stated by De Leon, taxes ought to possess the following characteristics:
1. Enforced Contribution- Due to the critical role taxes play in a state, a tax cannot be
imposed as a voluntarily contribution or donations. All citizens, concerning their
ability, have to pay taxes(the National Internal Revenue Code of the Philippines,
Republic Act 8284)
2. Payable in money – A tax must be discharged alone in money which must be in legal
tender. Proportionate in character. Taxes are based on the ability to pay.
3. Imposed on persons or property. For example, a person will pay taxes for his income
and owned estates. Imposed by the state which has jurisdiction over the person or
property.
4. Imposed by the law-making body of the state- Although taxation is considered to be an
inherent power of the state, its imposition must be anchored on the enactment of
statutes and ordinances made by the Legislative branch of the government.
5. It is levied for public purposes – taxation involves and a tax constitutes, a charge or
burden imposes to provide income for public purposes – the support of the government,
the administration of the law, or the payment by the public expense.
Kinds of Taxes under Existing Laws
Types of Taxes
As to who bears the burden
 1. Direct taxes – These are paid and shouldered directly by the taxpayer. These include
personal income taxes and estate taxes.
2. Indirect taxes – These are paid by the taxpayer but which he can shift or pass on to
others, particularly those who avail of his goods and services.

As to Subject matter or Object

1. Personal, Poll or Capitation Tax – refers to a tax of fixed amount imposed on an
individual residing within a specified territory, whether a citizen or not, and regardless of
property or the occupation, they engaged in. (e.g community tax).
2. Property tax – refers to the amount imposed on property, whether real or personal, in
proportion either to its value or by some other reasonable method or appointment (e.g.
real estate tax)
3. Excise tax – refers to any tax which does not fall within the classification of a poll tax or
a property tax. It is charged or imposed upon the performance of an act, the enjoyment of
privilege, and in engaging an occupation (e.g., estate , donors, and income taxes: value-
added tax, and practically all business taxes.)
Four Canons for Good Taxation
1. Equity – must be based on ability to pay.
2. Certainty – the amount to be paid and the manner for payment must be precise.
3. Convenience – the time for payment and the manner of the collection must not be
oppressive
4. Economy – the tax to be levied must be just enough to sustain the government and its
functions
Three Phases of taxation
1. Levy or imposition – involves the impact of taxation, free to select the persons or
properties or the business, interest, or privileges that may be subjected to imposition or
burdens, as long as the legislative body does not violate constitutional restrictions or
limitations.
2. Assessment and collection – the basic guidelines on the assessment are laid down, and
the administrative authorities are responsible for the details in the collection of taxes.
3. Payment – referred to as the incident of taxation.
Purpose of Taxation
To raise revenue or provide funds to promote the general welfare and protection of its
citizens, and to enable the government to finance its various activities also to satisfy the
following objectives:
a. Equitably distribute the wealth of the nation, referring to the case of estate and donor’s
taxes.
 b. Protect new industrious in which the rate of taxation may be increased to regulate the
proliferation of unnecessary industries and competition with foreign investments.
Basis of Taxation – based on the reciprocal duties of protection and support between the state
and its inhabitants. In return for his contribution, the taxpayer receives benefits and protection
from the government. It is otherwise as to the “benefits received principle.”
Characteristics of a Sound Tax System

1. Fiscal Adequacy – the sources of revenue must be adequate or enough to defray the
expenses of the government.
2. Administrative Feasibility – must meet the following criteria:
a. The laws must be clear and concise
b. It is capable of proper enforcement
c. It is not burdensome.
Classification of Taxes
As to purpose
1. General Fiscal or Revenue Tax – imposed for the general purpose of the government to
raise funds for its needs (e.g. income tax and almost all taxes).
2. Individual or Regulatory Tax – imposed for a particular purpose to achieve some social
or economic ends, irrespective of whether revenue raised or not (e.g. protective tariffs or
customs duties on import goods to protect local industries)
As to scope or authority imposing the tax
1, National Tax – imposed by the national government (e.g., national revenues and customs
duties)
2 Municipal or Local Tax –imposed by municipal or public corporations (e.g. real estate tax)
As to the determination of account
1. Specific Tax – refers to the fixed amount imposed by the head or number, or by some
standard or weight or measurement which requires assessment other than a listing or
classification of the subjects to be taxed.
2. As Valorem Tax – is a fixed proportion of the value of the property concerning which the
tax is assessed and determines the amount due to each taxpayer (e.g, real state tax,
percentage tax, and excise tax on cigars and cigarettes).
As to who bears the burdens:
1. Direct tax – demanded the person who also shoulders the burden of the tax (e.g.
community tax, corporate and individual income taxes).
2. Indirect Tax – demanded from one person in the expectation than he should indemnify
himself at the expense of another; or a tax imposed on goods before they reach the
 customer who ultimately pays them, not as a tax, but as a part of the purchase price to
which it is added (e.g., all business taxes such as VAT, percentage taxes, and other
customs duties).
As to Graduation or Rate:
1. Proportional Tax – based on a fixed percentage of the amount of the property, income or
other bases to be taxed. (e.g., real property tax and all percentage taxes).
2. Progressive or Graduated Tax – refers to the rate which increases as the tax base or
bracket increases (e.g., income tax, estate tax, domor’s tax).
3. Regressive Tax – refers to the rate, which decreases as the tax base or bracket increases.
Kinds of Taxes under Existing Laws
1. National Taxes – those implied by the National Governments under the National Internal
Revenue Code and other laws, particularly the Tariff and Customs Code.
2. Local Taxes – those imposed by local governments to meet particular needs under the
Local Government Code, such as real property tax and the community tax (formerly
residence tax).
Kinds of National Internal Revenue Taxes
The following are deemed to be national internal revenue taxes.
1. Income Tax – a tax on a person’s income, emoluments, profits, and the like realized in
one taxable year.
2. Estate Tax – is the tax on the right of the deceased person to transmit his/ her estate to
his/ her lawful heirs and beneficiaries at the time of death and on certain transfers, which
are made by laws as equivalent to testamentary disposition. It is not a tax on property. It
is a tax imposed on the privilege of transmitting property upon the death of the owner.
-It is based on the laws in force at the time of death, notwithstanding the postponement of
the actual possession or enjoyment of the estate by the beneficiary.

6. Self-Assessment and Evaluation of the Activities.

Activity # 4 &Quiz #2 (Wait for Instructions)
A. Identification/Multiple Choices
B. Matching Type.
(Please answer this to Google Form from Google Classroom or LMS. Wait for the my
instructions)
 Grading System
Output =50%
Mid-Term/Final Examination =25%
Quizzes =15%
Attendance =10%
100%

*Final Rating = Midterm (50%) + Final Term

7. References
Halili, MC N. (2004). Philippine History, Rex Booksrote.
Agoncillio, T.A. (1984). Kasaysayan ng Bayang Pilipino, Ikaapat na Edisyon,
Garotech Publishing.
Zaide G. F & Zaide, S.M. (2004). Kasaysayan at Pamahalaan ng Pilipinas. Ikaanim na
Edisyon. All-Nations Publishing Co, Inc.
Delos Santos A. R., Ramos, O.H, Ambida M. N. & Maliban N. P (2019). Readings in
Philippine History, Books Atbp. Publishing Corp.
Candelaria, JL P & Alphorha, V. C (2018). Reading in Philippine History, Rex
Bookstore

LORENA P. FLORITA
College Instructor

Noted:

MRS. ELVIE D. ARAGONES, PhD (cand.)

Program Chairperson

Approved by:

LUIS I. GANTE JR., PhD

Dean of College