Learning Objectives:  was promulgated by the Philippine Upon the defeat of the Spanish

 To analyze social, political, economic, Revolutionary Government on 1 to the Americans in the Battle of Manila
and cultural issues in the Philippines November 1897 Bay, the United States Navy transported
using the lens of history.  borrowed from Cuba Aguinaldo bank to the Philippines. The
 To recognize that the problems of today
 was written by Isabelo Artacho and newly reformed Philippine revolutionary
are consequences of decisions and
events that happened in the past. To Félix Ferrer in Spanish, and later forces reverted to the control of
understand several enduring issues in on, translated into Tagalog. Aguinaldo, and the Philippine
Philippine society through history. Declaration of Independence was issued
 To propose recommendations or The organs of the Government under the on 12 June 1898, together with several
solutions to present-day problems Constitution are: decrees that formed the First Philippine
based on the understanding of the past (1) Supreme Council Republic.
and anticipation of the future through which is vested with the power
the study of history.
of the Republic, headed by the The Malolos Congress was elected,
 president and which selected a commission to draw up
This chapter is dedicated to enduring
 four department secretaries; a draft constitution on 17 September
issues in Philippine society, which
1. interior 1898, which was composed of
history could lend a hand in
2. foreign affairs  wealthy & educated men.
understanding, and hopefully, proposing
3. treasury
solutions. These topics include the
4. war The Political Constitution of 1899
mandated discussion on the Philippine
 document they came up with
constitution, policies on agrarian reform,
(2) Supreme Council of Grace and  approved by the Congress on 29
and taxation.
Justice November 1898
It is hoped that these discussions will
(Consejo Supremo de Gracia Y Justicia)  promulgated by Aguinaldo on 21
help us propose recommendations or
which is given the authority to January 1899,
solutions to present-day problems based
 make decisions  written in Spanish.
on our understanding of root causes and
 affirm or disprove the  has
how we anticipate future scenarios in the
sentences rendered by other o 39 articles divided into 14 titles
Philippine setting.
courts o 8 articles of transitory provisions
 to dictate rules for the o a final additional article
Evolution of the Philippine
administration of justice  was patterned after the Spanish
Constitution
(3) Assembly of Representatives Constitution of 1812, with
(Asamblea de Representantes) influences from the charters of
Constitution o Belgium, Mexico, Brazil,
which was to be convened after
 a set of fundamental principles or Nicaragua, Costa Rica, and
the revolution
established precedents according to Guatemala, and the French
 to create a new Constitution
which a state or other organization Constitution of 1793.
 to elect a new Council of
is governed
Government and Felipe Calderon (main author)
 thus, the word itself, constitution,
Representatives of the people. these countries were studied
means to be a part of a whole, the
coming together of distinct entities because they shared similar conditions
The Constitution of Biak-na-Bato was with the Philippines
into one group, with the same
never fully implemented, since a truce,  social,
principles and ideals.
the Pact of Biak-na-Bato, was signed  political,
 These principles define the nature
between the Spanish and the Philippine  ethnological,
and extent of government.
Revolutionary Army.  governance
The Constitution of the Philippines  Prior constitutional projects in the
Primary Source:
 the supreme law of the Republic of Philippines also influenced the
Preamble of the Biak-na-Bato Constitution
the Philippines, has been in effect Malolos Constitution, namely,
since 1987. The separation of the Philippines from the o Kartilya
 There are only three other Spanish monarchy and their formation into an o Sanggunian Hukuman
constitutions that have effectively independent state with its own government o Charter of laws and morals of the
governed the country: called the Philippine Republic has been the end Katipunan written by Emilio
sought by the Revolution in the existing war, Jacinto in 1896
1. 1935 Commonwealth
begun on the 24th of August, 1896; and, o Biak-na-Bato Constitution of 1897
Constitution
therefore, in its name and by the power planned by Isabelo Artacho
2. 1973 Constitution delegated by the Filipino people, interpreting o Mabini's Constitutional Program of
3. 1986 Freedom Constitution faithfully their desires and ambitions, we the the Philippine Republic of 1898
representatives the Revolution, in a meeting at o Provisional constitution of Mariano
However, there were earlier Biak-na-bato. November 1, 1897 unanimously Ponce in 1898 that followed the
constitutions attempted by Filipinos in adopted the following articles for the Spanish constitutions
the struggle to break free from the constitution of the State. o Autonomy projects of Paterno in
colonial yoke. 1898.
1899: Malolos Constitution
Primary Source:
1897: Constitution of Biak-na-Bato
After the signing of the truce, the Filipino Preamble of the Political Constitution of
revolutionary leaders accepted payment 1899
Constitution of Biak-na-Bato We, the Representatives of the Filipino
from Spain and went to exile in Hong
 was the provisionary Constitution People. lawfully convened, in order to
Kong.
of the Philippine Republic during establish justice, provide for common
the Philippine Revolution defense, promote the general welfare and
1 May 1898 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
  elected by a constituent assembly Commission, replacing it with
As a direct challenge to colonial of the Assembly of Representatives a Senate that served as the
authorities of the Spanish empire, the and special representatives. upper house and its members
sovereignty was retroverted to the  The president will serve a term of elected by the Filipino voters,
people, a legal principle underlying the four years without re-election. the first truly elected national
Philippine Revolution. The people  There was no vice president, and legislature.
delegate governmental functions to civil in case of a vacancy, a president  It was also this Act that
servants while they retain actual was to be selected by the explicitly declared the purpose
sovereignty. constituent assembly. of the United States to end their
sovereignty over the
Direct reactions to features of the The 1899 Malolos Constitution was Philippines and recognize
Spanish government in the Philippines, never enforced due to the ongoing war. Philippine independence as
where the friars were dominant agents of The Philippines was effectively a soon as a stable government
the state. territory of the United States upon the can be established.
signing of the Treaty of Paris between
1. Title IV (27 articles) - detail the Spain and the United States, transferring In 1932, Hare-Hawes-Cutting Act
natural rights and popular sovereignty of the Philippines on 10  with the efforts of the Filipino
sovereignty of Filipinos, the December 1898. independence mission led by Sergio
enumeration of which does not Osmeña and Manuel Roxas, the
imply the prohibition of any other 1935: The Commonwealth United States Congress passed the
rights not expressly stated. Constitution act with the promise of granting
Filipinos independence.
2. Title III (Article V) - also declares  The bill was opposed by then Senate
It is worth mentioning that after the
that the State recognizes the President Manuel L. Quezon and
Treaty of Paris, the Philippines was
freedom and equality of all beliefs, consequently, rejected by the
subject to the power of the United States
as well as the separation of Church Philippine Senate.
of America, effectively the new
and State.
colonizers of the country.
By 1934, Tydings-McDuffie Act
According to Title II (Article 4) - The (Philippine Independence Act)
From 1898 to 1901,
form of government is to be popular,  another law, was passed by the
Philippines would be placed
representative, alternative, and United States Congress that
under a military government until a civil
responsible, and shall exercise three provided authority and defined
government would be put into place.
distinct powers: legislative, executive, mechanisms for the establishment of
and judicial. a formal constitution by a
Two acts of the United States Congress
were passed that may be considered to constitutional convention.
Assembly of Representatives  The members of the convention
have qualities of constitutionality.
 The legislative power was vested were elected and held their first
in this unicameral body meeting on 30 July 1934, with Claro
 Philippine Organic Act of 1902
 Members of which are elected for M. Recto unanimously elected as
 the first organic law for the
terms of four years president.
Philippine Islands that
 Secretaries of the government were
provided for the creation of a
given seats in the assembly, which The constitution was crafted to meet the
popularly elected Philippine
meet annually for a period of at approval of the United States
Assembly.
least three months. government, and to ensure that the
 The act specified that
 Bills could be introduced either by
legislative power would be
the president or by a member of the Primary Source:
vested in a bicameral
assembly. Preamble of the 1936 Commonwealth
legislature composed of the
 Some powers not legislative in
Philippine Commission as the
nature were also given to the body, The Filipino people, imploring the aid of
upper house and the Divine Providence, in order to establish a
such as
Philippine Assembly as lower government that shall embody their ideals,
 right to select its own
house. conserve and develop the patrimony of the
officers,
 Key provisions of the act nation, promote the general welfare, and
 right of censure and secure to themselves and their posterity the
included a bill of rights for
interpellation blessings of independence under a regime of
Filipinos and the appointment
 right of impeaching the justice, liberty, and democracy, do ordain and
of two non-voting Filipino
president, cabinet members, promulgate this constitution.
Resident Commissioners of
the chief justice of the
the Philippines as
Supreme Court, and the United States would live up to its
representative to the United
solicitor-general. Promise to grant independence to the
States House of
Representatives. Philippines.
A permanent commission of seven, Commonwealth of the Philippines
elected by the assembly, and granted  It was created by the constitution
 Philippine Autonomy Act of 1916
specific powers by the constitution, was  an administrative body that
(Jones Law)
to sit during the intervals between governed the Philippines from 1935
 The second act that functioned
sessions of the assembly. to 1946.
as a constitution
 modified the structure of the  It is a transitional administration to
President prepare the country toward its full
Philippine government through
 Executive power was vested in the achievement of independence.
the removal of the Philippine
president,
 It originally provided for a constitutional convention to  head of government and
unicameral National Assembly with change the 1935 Constitution. Commander-in-Chief of the
a president and vice president Armed Forces
elected to a six. year term without In 1969
re-election.  Marcos won the re-election, in a November 30, 1973
bid boosted by campaign  President Marcos issued
It was amended in 1940 to have a overspending and use of Presidential Decree No. 73 setting
bicameral Congress composed of a government funds. the date of the plebiscite to ratify
Senate and a House of November 20, 1970 or reject the proposed constitution
Representatives, as well as the  Elections of the delegates to the on 30 November 1973.
creation of an independent electoral constitutional convention and the  This plebiscite was postponed
commission, and limited the term of convention began formally on 1 later on since Marcos feared that
office of the president and vice June 1971, with former President the public might vote to reject the
president to four years, with one re- Carlos P. Garcia being elected as constitution.
election. convention president.  Instead of a plebiscite, Citizen
 Unfortunately, he died, and was Assemblies were held, from 10-
Rights to suffrage succeeded by another former 15 January 1973, where the
 were originally afforded to male president, Diosdado Macapagal. citizens coming together and
citizens of the Philippines who are voting by hand, decided on
twenty-one years of age or over and Martial law was declared whether
are able to read and write  Before the convention finished its  to ratify the constitution
 this was later on extended to women work, martial law was declared.  suspend the convening
within two years after the adoption  Marcos cited a growing of the Interim National
of the constitution. communist insurgency as reason Assembly
for the martial law, which was  continue Martial Law
While the dominant influence in the provided for in the 1935  place a moratorium on
constitution was American, it also bears Constitution. elections for a period of
traces of the  Some delegates of the ongoing at least several years.
 Malolos Constitution constitutional convention were
 German, Spanish, and Mexican  placed behind bars January 17, 1973
constitutions  others went into hiding  The President issued a
 constitutions of several South or voluntary exile. proclamation announcing that the
American countries,  With Marcos as dictator, the proposed constitution had been
 unwritten English Constitution. direction of the convention ratified by an overwhelming vote
turned, with accounts that the of the members of the highly
February 8, 1935 president himself irregular Citizen Assemblies.
 The draft of the constitution was  dictated some  The constitution was amended
approved by the constitutional provisions of the several times.
convention constitution
 manipulating the In 1976
March 25, 1935 document to be able to  Citizen Assemblies, once again,
 ratified by then U.S. President hold on to power for as overwhelming decided to allow
Franklin B. Roosevelt long as he can. the continuation of martial law, as
well as approved the
September 1935 November 29, 1972 amendments:
 Elections were held and Manuel  the convention approved its  an Interim Batasang
L. Quezon was elected President proposed constitution. Pambansa to substitute for
of the Commonwealth.  The constitution was supposed to the Interim National
 The Commonwealth was briefly introduce a parliamentary-style Assembly
interrupted by the events of the government, where legislative  the president to also
World War II, with the Japanese power was vested in a unicameral become the Prime Minister
occupying the Philippines. National Assembly, with and continue to exercise
members being elected to a six- legislative powers until
July 4, 1946 year term. martial law is lifted and
Afterward, upon liberation, the  The president was to be elected as authorized the President to
Philippines was declared an the symbolic and ceremonial head legislate on his own on an
independent republic of state chosen from the members emergency basis.
of the National Assembly.  An overwhelming majority
1973: Constitutional  The president would serve a six- will ratify further
Authoritarianism year term and could be re-elected amendments succeedingly.
to an unlimited number of terms.
In 1965 In 1980
 Ferdinand E. Marcos was elected Prime Minister  the retirement age of members of
president  Executive power was relegated to the judiciary was extended to 70
him years.
In 1967  was also to be elected from the
Philippine Congress passed a National Assembly In 1981
resolution calling for a
  the parliamentary system was support Marcos and his martial law,  The Executive branch is headed by
formally modified to a French- the Marcos family fled into exile. whom he appoints
style  His opponent in the snap elections,  president
 semi-presidential system where Benigno Aquino Jr.'s widow.  his cabinet
executive power was restored to Corazon Aquino, was installed as The president is the head of the
the president, who was, once again, president on 25 February 1986. state and the chief executive, BUT
to be directly elected, his power is limited by significant
 an Executive Committee was to be 1987: Constitution After Martial checks from the two other co-equal
created, composed of the Law branches of government, especially
 Prime Minister and during times of emergency.
fourteen others, that President Corazon Aquino's government
served as the president's had three options regarding the This is put in place to safeguard the
Cabinet constitution: country from the experience of
 some electoral reforms 1. revert to the 1935 Constitution martial law despotism during the
were instituted. 2. retain the 1973 Constitution and be presidency of Marcos.
In 1984 granted the power to make reforms  In cases of national emergency,
 the Executive Committee was 3. start a new and break from the the president may still declare
abolished and the position of the "vestiges of a disgraced martial law, but not longer than a
vice president was restored. dictatorship." period of sixty days.
 Congress, through a majority
After all the amendments introduced, the They decided to make a new constitution vote, can revoke this decision, or
1973 Constitution was merely a way for that, according to the president herself, extend it for a period that they
the President should be "truly reflective of the determine.
 to keep executive powers aspirations and ideals of the Filipino  The Supreme Court may also
 abolish the Senate, people." review the declaration of martial
 by no means, never acted as a law and decide if there were
parliamentary system, but March 1986 sufficient justifying facts for the
instead, functioned as an  President Aquino proclaimed a act.
authoritarian presidential transitional constitution to last for a  The president and the vice
system, with all the real power year while a Constitutional president are elected at large by a
concentrated in the hands of the Commission drafted a permanent direct vote, serving a single six-
president, with the backing of constitution. year term.
the constitution.  This transitional constitution,
called the Freedom Constitution, The legislative power resides in a
The situation in the 1980s has been very maintained many provisions of the Congress divided into two Houses:
turbulent. As Marcos amassed power, old one, including in rewritten 1. Senate
discontent has also been burgeoning. form the presidential right to rule  The 24 senators are elected
 The tide turned swiftly when in by decree. at large by popular vote,
August 1983, Benigno Aquino Jr., and can serve no more than
opposition leader and regarded as In 1986 two consecutives six-year
the most credible alternative to  a constitutional convention was terms.
President Marcos, was assassinated created, composed of 48 members 2. House of Representatives
while under military escort appointed by President Aquino  The House is composed of
immediately after his return from from varied backgrounds and district representatives
exile in the United States. representations. representing a particular
 There was widespread suspicion that  The convention drew up a geographic area and makes
the orders to assassinate Aquino permanent constitution, largely up around 80% of the total
came from the top levels of the restoring the setup abolished by number of representatives.
government and the military. Marcos in 1972, but with new  There are 234 legislative
 This event caused the coming ways to keep the president in districts in the Philippines
together of the non-violent check, a reaction to the experience that their representatives to
opposition to the Marcos of Marcos's rule. serve three-year terms.
authoritarian regime.  The 1987 Constitution
 Marcos was then forced to hold New Constitution created a party-list system
"snap" elections a year early, and  was officially adopted on 2 to provide spaces for the
said elections were marred by February 1987 participation of under.
widespread fraud.  begins with a preamble and represented community
 Marcos declared himself winner, eighteen self-contained. articles. sectors or groups. Party-list
despite international condemnation  It established the Philippines as a representatives may fill up
and nationwide protests. "democratic republican State" not more than 20% of the
 A small group of military rebels where "sovereignty resides in the seats in the House.
attempted to stage a coup, but failed; people and all government
however, this triggered what came authority emanates from them." Congress
to be known as the EDSA People  It allocates governmental powers  Aside from the exclusive power of
Power Revolution of 1896, as among the executive, legislative, legislation, Congress may also
people from all walks of life spilled and judicial branches of the declare war, through a two-thirds
onto the streets. government. vote in both upper and lower
 Under pressure from the United houses.
States of America, who used to
  The power of legislation, however, Sandiganbayan - a special court  All legislative districts
is also subject to an executive created for this purpose. must be represented by at
check, as the president retains the least 12% of the registered
power to veto or stop a bill from  House of Representatives – they votes therein.
becoming a law. are the only one can initiate the  No amendment is allowed
 Congress may only override this impeachment of the more than once every five
power with a two-thirds vote in  president, years since a successful
both houses.  members of the Supreme PI.
Court  The 1987 Constitution
The Philippine Court system is vested  other constitutionally directs the Congress to
with the power of the judiciary, and is protected public officials enact a law to implement
composed of a Supreme Court and lower such as the Ombudsman provisions of the PI,
courts as created by law. which has not yet
 The Supreme Court is a 15-  The Senate will then try the materialized.
member court appointed by the impeachment case.  Amendments or revision
president without the need to be  This is another safeguard to to the constitution shall be
confirmed by Congress. promote moral and ethical conduct valid only when ratified
 The appointment the president in the government. by a majority of the votes
makes, however, is limited to a list cast in a national
of nominees provided by a referendum.
constitutionally specified Judicial Changing the Constitution is a
and Bar Council. perennial issue that crops up, and terms
 The Supreme Court Justices may such as "Cha-Cha," "Con-Ass," and
hear, on appeal, any cases dealing "Con-Con" are regularly thrown around
with the constitutionality of any Attempts to Amend or Change the
law, treaty, or decree of the Article XVII of the 1987 Constitution 1987 Constitution
government, cases where questions provides for three ways by which the
of jurisdiction or judicial error are Constitution can be changed. The 1987 Constitution provided for three
concerned, or cases where the 1. Congress (House of Representatives methods by which the Constitution can
penalty is sufficiently grave. and the Senate) may convene 18 a be amended, all requiring ratification by
 It may also exercise original Constituent Assembly (Con-Ass) to a majority vote in a national referendum.
jurisdiction over cases involving propose amendments to the These methods were
government or international Constitution. 1. Constituent Assembly
officials.  It is not clear, however, if 2. Constitutional Convention
 The Supreme Court is also in Congress is to vote as a 3. People's Initiative.
charge of overseeing the single body or separately.
functioning and administration of  How the Congress Using these modes, there were efforts to
the lower courts and their convenes as a Con-Ass is amend or change the 1987 Constitution,
personnel. also not provided for in starting with the presidency of Fidel V.
the Constitution. Ramos who succeeded Corazon Aquino.
The Constitution also established three 2. Constitutional Convention (Con- 1. The first attempt was in 1995
independent Constitutional Commissions Con)  when then Secretary of
namely  where Congress, upon a National Security Council
1. Civil Service Commission vote of two-thirds of all its Jose Almonte drafted a
 a central agency in charge of members, calls for constitution, but it was
government personnel constitutional convention. exposed to the media and it
2. Commission on Elections  They may also submit to never prospered.
 mandated to enforce and the electorate the question 2. The second effort happened in
administer all election laws and of calling a convention 1997
regulations through a majority vote of  when a group called PIRMA
3. Commission on Audit all its members. hoped to gather signatures
 which examines all funds,  In a Con-Con, delegates from voters to change the
transactions, and property accounts will propose amendments constitution through a
of the government and its agencies. or revisions to the people's initiative.
constitution, not Congress.  Many were against this,
Office of the Ombudsman  The 1987 Constitution including then Senator
 it was created to further promote does not provide for a Miriam Defensor-Santiago,
the ethical and lawful conduct of method by which who brought the issue to
the government delegates to the Con-Con court and won with the
 it was created to investigate are chosen. Supreme Court judging that
complaints that pertain to 3. "People's Initiative" (PI) a people's initiative cannot
 public corruption  In this method, push through without an
 unlawful behavior of amendments to the enabling law.
public officials Constitution may be 3. The succeeding president, Joseph
 other public misconduct proposed by the people Ejercito Estrada
 The Ombudsman can charge public upon petition of at least  formed a study commission
officials before the Sandiganbayan 12% of the total number to investigate the issue
of registered voters. surrounding charter change
 focusing on the economic executive order creating a portion to the national
and judiciary provisions of consultative committee to government.
the constitution. review the 1987  They can choose to directly fund
 This effort was also blocked Constitution. their own development projects
by different entities, After without asking for the national
President Estrada was Federalism in the Philippines was government's go signal.
replaced by another People supported by President Duterte in the  A federal system could also
Power and succeeded by his 2016 presidential elections, saying that it promote specialization, since the
Vice President will evenly distribute wealth in the national government could focus
4. Gloria Macapagal Arroyo, then Philippines instead of concentrating it in on nationwide concerns while
House Speaker Jose de Venecia Manila, the capital of the country. regional governments can take
 endorsed constitutional  As a form of government, a central care of administrative issues.
change through a governing authority and constituent  A federal form of government
Constituent Assembly, which political units constitutionally could also solve a lot of decade-
entails a two-thirds vote of share sovereignty. old problems of the country.
the House to propose  Applied to the Philippines, the  It may be a solution to the conflict
amendments or revision to country will be broken into in Mindanao, since a separate
the Constitution. autonomous regions. Bangsamoro region could be
 This initiative was also not  Each region will be further divided established for Muslim
successful since the term of into local government units. Mindanao.
President Arroyo was mired  The regions will have the primary  It could address the inequality in
in controversy and scandal, responsibility of wealth distribution and lessen the
including the possibility of  industry development dependence to Metro Manila,
Arroyo extending her term  public safety and instruction since regions can proceed with
as president, which the  education, what they have to do without
Constitution does not allow.  healthcare needing to consider the situation
5. The administration of the  transportation, in the capital.
succeeding President Benigno  many more.
Aquino III  Each region will also take charge There are also cons to federalism
 had no marked interest in of their own  While it creates competition
charter change  finances, among regions, it could also be
 except those emanating from  plans for development, a challenge to achieving unity
different members of  and laws exclusive to their in the country.
Congress, including the area.  There might be regions which
Speaker of the House,  The national government, on the are not ready to govern
Feliciano Belmonte Jr., who other hand, will only handle themselves, or have lesser
attempted to introduce matters of national interest such resources, which could mire
amendments to the as them deeper in poverty and
Constitution that concern  foreign policy and defense, make development uneven in
economic provisions that among others. the country.
aim toward liberalization.  In this system, it is possible for  There could be issues regarding
 This effort did not see the the central government and the overlaps in jurisdiction, since
light of day. regions to share certain powers. ambiguities may arise where
national ends and regional
6. In an upsurge of populism, Our current system is that of a unitary begins, or vice versa.
President Rodrigo Duterte won the form  As a proposed solution to the
2016 presidential elections in a  where administrative powers and conflict in Mindanao, we must
campaign centering on law and resources are concentrated in the also remember that the
order, proposing to reduce crime national government Autonomous Region in Muslim
by killing tens of thousands of  Mayors and governors would Mindanao (ARMM) has
criminals. have to rely on allocations already been created, and the
 He is also a known advocate provided to them through a conflict still continues.
of federalism proposed budget that is also  Federalism may not be enough
approved by the national for those who clamor
Federalism - a compound government separation
mode of government  a system prone to abuse
combining a central or Any effort to shift the system of
federal government with There are many pros to a federal form of government also entails costs, and it
regional governments in a government would not be cheap. It would cost
single political system.  Each region may custom fit billions to dismantle the current system
solutions to problems brought and would take a long time before the
 This advocacy is in part an about by their distinct geographic, system normalizes and irons out its kinks.
influence of his background, cultural, social, and economic
being a local leader in contexts.
Mindanao that has been  Regions also have more power
mired in poverty and over their finances, since they
violence for decades. handle majority of their income
 On 7 December 2016, and only contributes to a small
President Duterte signed an
 Landownership in the Philippines  Lands were claimed and registered
under Spain in other people's names, and many
 When the Spaniards colonized the peasant families who were
country, they brought with them a "assigned" to the land in the earlier
system of pueblo agriculture, days of colonization were driven
where rural communities, often out, or forced to come under the
dispersed and scattered in nature, power of these people who claimed
were organized into a pueblo and rights to the land because they held
given land to cultivate. a title.
 Families were not allowed to own  This is the primary reason why
their land—the King of Spain revolts in the Philippines were
owned the land, and Filipinos were oftentimes agrarian in nature.
assigned to these lands to cultivate  Before the colonization, Filipinos
them, and they pay their colonial had communal ownership of land.
tributes to the Spanish authorities  The system introduced by the
in the form of agricultural Spaniards became a bitter source of
products. hatred and discontent for the
 Later on, through the Law of the Filipinos.
Indies, the Spanish crown awarded  Religious orders, the biggest
tracts of land to landowners in the Philippines, also
1) religious orders; became a main source of abuse and
2) Spanish military as exploitation for the Filipinos,
repartamientos or reward for increasing the rent paid by the
their service; and Filipinos on a whim.
3) Spanish encomenderos,  Filipinos fought the Philippine
those mandated to manage Revolution in a confluence of
the encomienda or the lands motivations, but the greatest desire
given to them, where for freedom would be the necessity
Filipinos worked and paid of owning land.
their tributes to the  Upon the end of the Philippine
encomendero. Revolution, the revolutionary
government will declare all large
Policies on Agrarian Reform  Filipinos were not given the right landed estates, especially the friar
 Agrarian reform is essentially the to own land, and only worked in lands, confiscated, and became
rectification of the whole system of them so that they may have a share government property.
agriculture, an important aspect of of the crops and pay tribute.  However, the first Philippine
the Philippine economy because  The encomienda system was an republic was short-lived.
nearly half of the population is unfair and abusive system, as  The entrance of the Americans will
employed in the agricultural sector, "compras y vandalas” became the signal a new era of colonialism and
and most citizens live in rural norm for the Filipino farmers imperialism in the Philippines.
areas. working the land—they were made
 Agrarian reform is centered on the to sell their products at a very low Landownership in the Philippines
relationship between production price, or surrender their products to under the Americans
and the distribution of land among the encomenderos, who resell this  The Americans were aware that the
farmers. at a profit. Filipinos in the main cause of social unrest in the
 It is also focused on the political encomienda were also required to Philippines is landlessness, and they
and economic class character of the render services to their attempted to put an end to the
relations of production and encomenderos that are unrelated to deplorable conditions of the tenant
distribution in farming and related farming farmers by passing several land
enterprises, and how these connect  From this encomienda system, the policies to increase the small
to the wider class structure. hacienda system developed in the landholders and distribute
 Through genuine and beginning of the 19th century, as ownership to a bigger number of
comprehensive agrarian reform, the Spanish government Filipino tenants and farmers.
the Philippines would be able to implemented policies that would  The Philippine Bill of 1902
gain more from its agricultural fast track the entry of the colony provided regulations on the disposal
potential and uplift the Filipinos in into the capitalist world. of public lands. A private individual
the agricultural sector, who have  The economy was tied to the world may own 16 hectares of land while
been, for the longest time, mired in market, as the Philippines became corporate landholders may have
poverty and discontent. an exporter of raw materials and 1,024 hectares.
 In our attempt to understand the importer of goods.  Americans were also given rights to
development of agrarian reform in  Agricultural exports were own agricultural lands in the
the Philippines, we turn our demanded and the hacienda system country.
attention to our country's history, was developed as a new form of  The Philippine Commission also
especially our colonial past, where ownership. enacted Act No. 496 or the Land
we could find the root of the  In the 1860s, Spain enacted a law Registration Act, which introduced
agrarian woes the country ordering land holders to register the Torrens system to address the
experiences up to this very day. their landholdings, and only those absence of earlier records of issued
who knew benefitted from this.
 land titles and conduct accurate land Land Settlement Administration since no support was given to small
surveys. (NLSA). Efforts toward agrarian farmers who were given lands.
 In 1903, the homestead program reform by the Commonwealth failed  Under the term of President Elpidio
was introduced, allowing a tenant to because of many problems such as
enter into an agricultural business by budget allocation for the settlement Primary Source:
acquiring a farm of at least 16 program and widespread peasant Declaration of Policy under RA No.
hectares. uprisings. 3844 or Agricultural Land Reform Code
 This program, however, was limited  World War II put a halt to all
to areas in Northern Luzon and interventions to solve these Source: Section 2. Declaration of
Mindanao, where colonial problems as the Japanese occupied Policy-It is the policy of the State:
penetration has been difficult for the country (1) To establish owner-cultivatorship
Americans, a problem they inherited and the economic family-size farm as
from the Spaniards. The Sakdal (or Sakdalista) Uprising the basis of Philippine agriculture and,
 Landownership did not improve  was a peasant rebellion in Central as a consequence, divert landlord capital
during the American period; in fact, Luzon that lasted for two days, May in agriculture to industrial development;
it even worsened, because there was 2-3, 1935
no limit to the size of landholdings  It was easily crushed by government (2) To achieve a dignified existence for
people could possess and the forces then, but this historical event the small farmers free from pernicious
accessibility of possession was tells of the social inequality brought institutional restraints and practices;
limited to those who could afford to about by issues in land ownership
buy, register, and acquire fixed and tenancy in the country (3) To create a truly viable social and
property titles.  The Filipino word sakdal means "to economic structure in agriculture
 Not all friar lands acquired by the accuse," which is the title of the conducive to greater productivity and
Americans were given to landless newspaper helmed by Benigno higher farm incomes:
peasant farmers. Ramos
 Some lands were sold or leased to  He rallied support from Manila and (4) To apply all labor laws equally and
American and Filipino business nearby provinces through the without discrimination to both industrial
interest. publication, which led to the and agricultural wage earners;
 This early land reform program was establishment of the Partido
also implemented without support Sakdalista in 1983 (5) To provide a more vigorous and
mechanisms—if a landless peasant  They demanded reforms from the systematic land resettlement program
farmer received land, he only government, such as the abolition of and public land distribution; and
received land, nothing more. taxes and "equal or common”
 Many were forced to return to ownership of land, among others (6) To make the small farmers more
tenancy and wealthy Filipino  They also opposed the dominant independent, self-reliant and responsible
hacienderos purchased or forcefully Nacionalista Party's acceptance of citizens, and a source of genuine
took over lands from farmers who gradual independence from the strength in our democratic society.
could not afford to pay their debts. United States, and instead demanded
 The system introduced by the immediate severance of ties with Quirino, the Land Settlement
Americans enabled more lands to be America Development Corporation
placed under tenancy, which led to  For a new party with a small clout, (LASEDECO) was established to
widespread peasant uprisings, such they did well in the 1934 general accelerate and expand the
as the Colorum and Sakdal Uprising elections, scoring three seats in the resettlement program for peasants.
in Luzon. House of Representatives and  This agency later on became the
 Peasants and workers found refuge several focal posts National Resettlement and
from millenarian movements that  This encouraged them to attempt an Rehabilitation Administration
gave them hope that change could uprising in 1935 (NARRA) under the administration
still happen through militancy.  Upon being crushed, Ramos fled to of President Ramon Magsaysay.
 During the years of the Tokyo and the Partido Sakdalista  Magsaysay saw the importance of
Commonwealth government, the collapsed pursuing genuine land reform
situation further worsened as program and convinced the
peasant uprisings increased and Post-War Interventions toward Congress, majority of which were
landlord-tenant relationship became Agrarian Reform landed elites, to pass legislation to
more and more disparate.  Rehabilitation and rebuilding after improve the land reform situation.
 President Quezon laid down a social the war were focused on providing  Republic Act No. 1199 or the
justice program focused on the solutions to the problems of the past. Agricultural Tenancy Act was
purchase of haciendas, which were  The administration of President as passed to govern the relationship
to be divided and sold to tenants. passed Republic Act No. 34 to between landholders and tenant
 His administration also created the establish a 70-30 sharing farmers, protecting the tenurial
National Rice and Corn Corporation arrangement lween tenant and rights of tenants and enforced
(NARIC) to assign public defenders landlord, respectively, which tenancy practices.
to assist peasants in court battles for reduced the interest of landowners'  Through this law, the Court of
their rights to the land, and the loans to tenants at six percent or Agricultural Relations was created
Court of Industrial Relations to less. in 1955 to improve tenancy security,
exercise jurisdiction over  The government also attempted to fix land rentals of tenanted farms,
disagreements arising from redistribute hacienda lands, falling and resolve land disputes filed by
landowner-tenant relationship. prey to the woes of similar attempts the landowners and peasant
 The homestead program also organizations.
continued through the National
 The Agricultural Tenancy Diosdado Macapagal through the agrarian reform during Marcos
Commission was also established to Agricultural Land Reform Code regime.
administer problems created by (Republic Act No. 3844). "Operation Land Transfer" on lands
tenancy. This Code abolished share tenancy in the occupied
In case ofby tenants
default, the of more than
amortization dueseven
shall
 The Agricultural Credit and Philippines and prescribed a program to hectares
be paid byon rice cooperative
the farmers and cornin which
lands
Cooperative Financing convert tenant-farmers to lessees and commenced, and through
the defaulting tenant-farmer legal
is a member,
Administration (ACCFA) was also later on owner-cultivators. with the cooperative
compulsion having delivery
and an improved a right of
of
recourse against
support serviceshim; to small farmers,
Primary Source: It also aimed to free tenants from tenancy agrarian reform seemed to be finally
The government shall guaranty such
Presidential Decree No. 27, 21 October and emphasize owner caltivatorship and achievable.
amortizations with shares of stock in
1972 farmer independence, equity, government-owned and government-
productivity improvement, and public Under the corporations;
controlled rice self-sufficiency program
This shall apply to tenant farmers of private land distribution. "Masagana '99," farmers were able to
agricultural lands primarily devoted to rice borrow
No titlefrom banks
to the land and
ownedpurchase three-
by the tenant-
and corn under a system of sharecrop or Despite being one of the most farmers plots
hectare under of
thislands
Decreeand
shallagricultural
be actually
lease-tenancy, whether classified as landed issued to a tenant-farmer unless and until the
comprehensive pieces of land reform inputs.
estate or not; tenant-farmer has become a full-fledged
legislation ever passed in the Philippines,
member of a duly recognized farmer's
The tenant farmer, whether in land classified Congress did not make any effort to However, the landlord class still found
cooperative:
as landed estate or not, shall be deemed come up with a separate bill to fund its ways to circumvent the law.
owner of a portion constituting a family-size implementation, despite the fact that it Title to land acquired pursuant to this
farm of five (5) hectares if not irrigated and proved beneficial in the provinces where Because only
Decree or therice
Landlands were
Reform the focus
Program of
of the
three (3) hectares if irrigated; it was pilot tested. agrarian reform,
Government shall notsome landlords except
be transferable only
by hereditary
needed to changesuccession
crops to beorexempted
to the
In all cases, the landowner may retain an area Government in accordance with and
the
of not more than seven (7) hectares if such Agrarian Reform Efforts under from the program, such as coconut
provisions
sugar lands. of this Decree, the Code of
landowner is cultivating such area or will Marcos Agrarian Reforms and other existing laws
now cultivate it;  President Marcos declared Martial and regulations;
Law in 1972, enabling him to Lands worked by wage labor were also
For the purpose of determining the cost of the essentially wipe out the landlord- exempt from the program,
The Department 80 the Reform
of Agrarian landed
land to be transferred to the tenant-farmer dominated Congress. elite onlyitshad
through to evict
Secretary their tenants
is hereby and
empowered
pursuant to this Decree, the value of the land hired workers instead.
to promulgate rules and regulations for the
 Through his Technocrats," he was
shall be equivalent to two and one-half (2 implementation of this Decree.
1/2) times the average harvest of three able to expand executive power to
start a "fundamental restructuring” Landlessness increased, which made it all
normal crop years immediately preceding the
promulgation of this Decree; of government, including its efforts the more difficult for the program to
in solving the deep structural succeed because landless peasants were
The total cost of the land, including interest problems of the countryside. excluded from the program.
at the rate of six (6) per centum per annum,  Presidential Decree No. 27 or the
shall be paid by the tenant in fitteen (16) Many other methods were employed by
Code of Agrarian Reform of the
years of fifteen (15) equal annual the elite to find a way to maintain their
amortizations; power and dominance, which were
worsened by the corruption of Marcos
and his cronies who were also involved
created mainly to provide in the agricultural sector.
warehouse facilities and assist
farmers in marketing their products. Post-1886 Agrarian Reform
 The administration spearheaded the The overthrow of Marcos and the 1987
establishment of the Agricultural Constitution resulted in a renewed
and Industrial Bank to provide interest and attention to agrarian reform
easier terms in applying for as President Corazon Aquino envisioned
homestead and other farmlands. agrarian reform to be the centrepiece of
 NARRA accelerated the her administration's social legislation,
government's resettlement program which proved difficult because her
and distribution of agricultural lands background betrayed her-she came from
to landless tenants and farmers. a family of a wealthy and landed clan
 It also aimed to convince members that owned the Hacienda Luisita.
of the Huks, a movement of rebels
in Central Luzon, to resettle in areas On 22 July 1987, Aquino issued
where they could restart their lives Presidential Proclamation 131 and
as peaceful citizens. Executive Order 229, which outlined her
 Despite a more vigorous effort land reform program.
toward agrarian reform, the situation
for the farmers remained dire since In 1988, the Congress passed Republic
the government lacked funds and Act No. 6657 or the Comprehensive
provided inadequate support Agrarian Reform Law (CARL), which
services for the programs. introduced the program with the same
 The landed elite did not fully name (Comprehensive Agrarian Reform
cooperate and they criticized the Program or CARP).
programs.
 A major stride in land reform Philippines became the core of It enabled the redistribution of
arrived during the term of President agricultural lands to tenant-farmers from
landowners, who were paid in exchange allowed to proceed to its finality and provide labor services to the datus in
by the government through just executed even beyond such date. some early Filipino communities in the
compensation and allowed them to retain Philippines may resemble taxation, it is
not more than five hectares. From 2009 to 2014, CARPER has, essentially different from the
distributed a total of 1 million hectares of contemporary meaning of the concept.
Corporate landowners were, however, land to 900,000 farmer beneficiaries.
allowed under law to voluntarily divest a After 27 years of land reform and two The arrival of the Spaniards altered this
proportion of their capital stock, equity, Aquino administrations, 500,000 hectares subsistence system because they imposed
or participation in favor of their workers of lands remain undistributed. the payment of tributos (tributes) from
or other qualified beneficiaries instead of the Filipinos, similar to what had been
turning over their land to the government. The DAR and the Department of practiced in all colonies in America.
Environment and Natural Resources
CARP was limited because it (DENR) are the government agencies The purpose is to generate resources to
accomplished very little during the mandated to fulfill CARP and CARPER, finance the maintenance of the islands,
administration of Aquino. but even the combined effort and such as salaries of government officials
resources of the two agencies have and expenses of the clergy.
It only accomplished 22.5% of land proved incapable of fully achieving the
distribution in six years owing to the fact goal of agrarian reform in the The difficulty faced by the Spaniards in
that Congress, dominated by the landed Philippines. revenue collection through the tribute
elite, was unwilling to fund the high was the dispersed nature of the
compensation costs of the program. The same problems have plagued its settlements, which they solved by
implementation: the powerful landed introducing the system of reduccion by
It was also mired in controversy, since elite and the ineffectual bureaucracy of creating pueblos, where Filipinos were
Aquino seemingly bowed down to the the Philippine government. gathered and awarded plots of land to till.
pressure of her relatives by allowing the
stock redistribution option. Until these two challenges are Later on, the settlements will be handled
surmounted, genuine agrarian reform in by encomenderos who received rewards
Hacienda Luisita reorganized itself into a the Philippines remains but a dream to from the Spanish crown for their
corporation and distributed stocks to Filipino farmers who have been fighting services.
farmers. for their right to landownership for
centuries Exempted from payment of tributos were
Under the term of President Ramos, the principales: alcaldes, gobernadores,
CARP implementation was speeded in cabezas de barangay, soldiers, members
order to meet the ten-year time frame, of the civil guard, government officials,
despite limitations and constraints in and vagrants.
funding, logistics, and participation of
involved sectors. The Filipinos who were once satisfied
with agricultural production for
By 1996, the Department of Agrarian subsistence had to increase production to
Reform (DAR) distributed only 58.25% meet the demands of payments and a
of the total area target to be covered by more intensive agricultural system had to
the program. be introduced.
To address the lacking funding and the Later on, half of the tribute was paid in
dwindling time for the implementation of Evolution of Philippine Taxation cash and the rest with produce. This
CARP, Ramos signed Republic Act No. In today's world, taxation is a reality that financed the conquest of the Philippines.
8532 in 1998 to amend CARL and extend all citizens must contend with for the
primary reason that governments raise Toward the end of the sixteenth century,
CARPER and the Future of revenue from the people they govern to the Manila-Acapulco trade was
Agrarian Reform in the be able to function fully. established through the galleons, a way
Philippines by which the Spaniards could make sure
The new deadline of CARP expired in In exchange for the taxes that people pay, that European presence would be
2008, leaving 1.2 million farmer the government promises to improve the sustained.
beneficiaries and 1.6 million hectares of citizens' lives through good governance.
agricultural land to be distributed to Once a year, the galleon would be loaded
farmers. Taxation, as a government mechanism to up with merchandise from Asia and sent
raise funds, developed and evolved to New Spain (Mexico), and back.
In 2009, President Arroyo signed through time, and in the context of the
Republic Act No. 9700 or the Philippines, we must understand that it This improved the economy of the
Comprehensive Agrarian Reform came with our colonial experience. Philippines and reinforced the control of
Program Extension with Reforms the Spaniards all over the country.
(CARPER), the amendatory law that Taxation in Spanish Philippines
extended the deadline to five more years. The Philippines may have abundant Tax collection was still very poor and
natural resources even before the subsidy from the Spain would be needed
Section 30 of the law also mandates that encroachment of the Spaniards, but our through the situado real delivered from
any case and/or proceeding involving the ancestors were mainly involved in a the Mexican treasury to the Philippines
implementation of the provisions of subsistence economy, and while the through the galleons.
CARP, as amended, which may remain payment of tribute or taxes (buhis/
pending on 30 June 2014 shall be buwis/handug) or the obligation to This subsidy stopped as Mexico became
independent in 1820.
 Forced labor was a character of Spanish peasants made the rich richer and the
In 1884, the payment of tribute was put colonial taxation in the Philippines and poor poorer.
to a stop and was replaced by a poll tax was required from the Filipinos. Taxation under the Americans
collected through a certificate of The Americans who acquired the
identification called the cédula personal. It proved useful in defending the territory Philippines aimed to make the economy
of the colony and augmenting the labor self-sufficient by running the government
This is required from every resident and required by woodcutting and with the smallest possible sum of revenue
must be carried while traveling. shipbuilding especially during the time of and create surplus in the budget.
the galleon trade.
Unlike the tribute, the payment of From 1898 to 1903, the Americans
cédulas is by person, not by family. Through the polo system, male Filipinos followed the Spanish system of taxation
were obliged to serve, a burden that with some modifications, noting that the
Payment of the cédula is progressive and resulted in an increase in death rate and system introduced by the Spaniards were
according to income categories. flight to the mountains, which led to a outdated and regressive.
decrease in population in the seventeenth
This system, however, was a heavy century. The military government suspended the
burden for the peasants and was easy for contracts for the sale of opium, lottery,
the wealthy. This changed later on, as polos and and mint charges for coinage of money.
servicios became lighter, and was
But because of this, revenue collection organized at the municipal level. Later on, the urbana would be replaced
greatly increased and became the main by tax on real estate, which became
source of government income. Labor provided was used in public known as the land tax.
works, such as the building of roads and
The Chinese in the Philippines were also bridges. Some were made to serve the The land tax was levied on both urban
made to pay their discriminatory cédula municipal office or as night guards. and rural real estates.
which was bigger than what the Filipinos
paid. Males were required to provide labor for The problem with land tax was that land
40 days a year (reduced to 16 days a year titling in the rural area was very
Two direct taxes were added in 1878 and in 1884). disorderly: the appraising of land value
imposed on urban incomon, Urbana is a was influenced by political and familial
tax on the annual rental value of an urban They may opt out by paying the fallas of factors and the introduction of a taxation
real estato and industria is a tax on thrha pesos per annum, which was system on agricultural land faced
salaries, dividends, and profits. usually lost to corruption because it was objections from the landed elite. Tax
collected at the municipal level and were evasion was prevalent, especially among
These taxes were universal and affected known as caidas or droppings. the elites.
all kinds of economic activity except
agriculture, which was exempt to The polos would be called prestación The Internal Revenue Law of 1904 was
encourage growth. personal (personal services) by the passed as a reaction to the problems of
second half of the nineteenth century. collecting land tax.
Indirect taxes such as customs duties
were imposed on exports and imports to Taxation in the Philippines during the It prescribed ten major sources of
further raise revenue, especially during Spanish colonial period was revenue: (1) licensed taxes on firms
the nineteenth century when economic characterized by the heavy burden placed dealing in alcoholic beverages and
growth increased exponentially. on the Filipinos, and the corruption of the tobacco,
principales, or the former datus and local (2) excise taxes on alcoholic beverages
There were no excise taxes collected by elites who were co-opted by the and tobacco products,
the Spaniards throughout the years of Spaniards to subjugate and control the (3) taxes on hanks and bankers,
colonialism. natives on their behalf. (4) document stamp taxes,
(5) the cédula,
The colonial government also gained The principales who were given positions (6) taxes on insurance and insurance
income from monopolies, such ns the such as cabezas de barangay or alcaldes companies,
sale of stamped paper, manufacture and in the local government were able to (7) taxes on forest products,
sale of liquor, cockpits, and opium, but enrich themselves by pocketing tributos (8) mining Concessions,
the biggest of the state monopolies was and/or falls, while the peasants were left (9) taxes on business and manufacturing,
tobacco, which began in 1781 and halted to be abused. and
in 1882. (10) occupational licenses.
Taxation appeared progressive but the
Only certain areas were assigned to disparity between the less taxed The cédula went through changes in the
cultivate tobacco, which the government principales and the heavily taxed new law as the rate was fixed per adult
purchased at a price dictated to the male, which resulted in a great decline in
growers. Primary Source: Mariano Herbosa Writes to Rizal
revenues.
About Taxes

This monopoly made it possible for the Source: Mariano Herbosa to Jose Rizal, Calamba, In 1907, some provinces were authorized
colony to create a surplus of income that 29 August 1886, Letters Between Rizal and Family to double the fee for the cédula to support
Members (Manila: National Heroes Commission,
made it self-sufficient without the need the construction and maintenance of
1964), 239-241,
for the situado real and even contributed roads.
to the Treasury of Spain. The tax! With regard to your question on this, the
answer ia very long. as it is the cause of the
The industrial tax was levied on the
prevailing misery here. What I can write you will be
only one-half of the story and even Dumas, senior, business community and became a highly
cannot exhaust the subject. Nevertheless, I'll try to
write what I can, though I may not be able to give a
complete story, you may at least know half of it.
complex system that assigned certain tax The introduced tax structure was an
to an industrial or commercial activity improvement of the earlier system The economic situation was so
according to their profitability. The new introduced by the Americans, but still problematic that by 1949, there was a
act also imposed a percentage tax on remained inequitable. severe lack of funds in many aspects of
sales payable quarterly. governance, such the military and
The lower class still felt the bulk of the education sectors.
In 1913, the Underwood-Simmons Tariff burden of taxation, while the upper class,
Act was passed, resulting in a reduction the landed elite or the people in political No efforts were made to improve tax
in the revenue of the government as positions, were able to maneuver the collection and the United States advised
export taxes levied on sugar, tobacco, situation that would benefit them more. the adoption of direct taxation.
hemp, and copra were lifted. The administration of President Manuel
The agriculture sector was still taxed low Roxas declined the proposal because it
To make up for the loss, then Governor to promote growth, but there was no did not want to alienate its allies in
General Francis Burton Harrison urged incentive for industrial investment to take Congress.
that tax receipts be increased to make up root and develop.
for the loss. The impetus for economic growth came
Finally, a common character of taxation during the time of President Elpidio
Minor changes were made to the 1904 during the American occupation in the Quirino through the implementation of
Internal Revenue Act such as the Philippines was not used to diversify the import and exchange controls that led to
imposition of taxes on mines, petroleum economy or direct economic import substitution development.
products, and dealers of petroleum development as some sectors still carried
products and tobacco. the disproportionate share of the tax This policy allowed for the expansion of
burden. a viable manufacturing sector that
New sources of taxes were introduced reduced economic dependence on
later on. In 1914, an income tax was As World War II reached the Philippine imports. New tax measures were also
introduced; in 1919, an inheritance tax shores, economic activity was put to a passed, which included higher corporate
was created; and in 1932, a national stop and the Philippines bowed to a new tax rates that increased government
lottery was established to create more set of administrators, the Japanese. revenues-tax revenue in 1953 increased
revenue for the government. twofold compared to 1948, the year when
The Japanese military administration in Quirino first assumed presidency.
However, these new creations were not the Philippines during World War II
enough to increase government revenues. immediately continued the system of tax While the succeeding presidencies of
Taxation during the Commonwealth collection introduced during the Magsaysay, Garcia, and Macapagal
Period New measures and legislation Commonwealth, but exempted the promised to study the tax structure and
were introduced to make the taxation articles belonging to the Japanese armed policy of the country through the creation
system appear more equitable during the forces. of a Tax Commission in 1959 by means
Commonwealth. of Republic Act No. 2211) to make way
Foreign trade fell and the main sources of for a more robust and efficient tax
Income tax rates were increased in 1936, taxation came from amusements, collection scheme, post-war fiscal policy
adding a surtax rate on individual net manufactures, professions, and business remained regressive, characterized by the
incomes in excess of 10,000 pesos. licenses. overburdening of the lowest classes while
the landed elite who held business
Income tax rates of corporations were As the war raged, tax collection was a interests were in Congress to ensure that
also increased. In 1937, the cédula tax difficult task and additional incomes of taxes would not be levied to them who
was abolished, which appeared to be a the government were derived from the belonged to the higher classes of society.
progressive move; but in 1940, a sales of the National Sweepstakes and
residence tax was imposed on every sale of government bonds. The period of the post-war republic also
citizen aged 18 years old and on every saw a rise in corruption. From 1969 to
corporation. The expenditure of the Japanese military 1968, Congress did not pass any tax
government grew greatly, and they issued legislation despite important changes in
In 1939, the Commonwealth government military notes in order to cover the costs the economy and the vented interest of
drafted the National Internal Revenue of the war. Filipino businessmen in Congress would
Code, introducing major changes in the manifest in many instances such as the
new tax system, as follows: Fiscal Policy from 1946 to Present rejection of taxes on imports.
1. The normal tax of three percent and The impact of the war on the Philippine
the surtax on income was replaced by a economy was effectively disparate, as Indirect taxation still contributed to three
single tax at a progressive rate. Manila, the capital, was razed to the quarters of tax revenues and the Omnibus
2. Personal exemptions were reduced. ground while the rest of the Philippines Tax Law of 196 did not increase the ratio
3. Corporation income tax was slightly was relatively untouched. of income tax to general tax revenue
increased by introducing taxes on
inherited estates or gifts donated in the But the highly agriculture-based Collection of taxes remained poor; tax
name of dead persons. economy was disrupted: The United structure was still problematic and much
[Link] cumulative sales tax was replaced States may have declared the Philippines of public funds were lost to corruption,
by a single turnover tax of 10% on independent, but as the country needed which left the government incapable of
luxuries. rehabilitation funds from the United funding projects geared toward
5. Taxes on liquors, cigarettes, forestry States, the dependency of the Filipinos to development.
products, and mining were increased. the Americans was an opportunity to be
6. Dividends were made taxable. taken advantage of by the former colonial Under the Marcos authoritarian regime,
administrators. the tax system remained regressive.
 reduce its reliability as legislated  House and lot and other
During the latter part of the Marcos's exemptions grew. residential dwellings valued at
years (1981-1986), the tax system was 51 million and below, subject
still heavily dependent on indirect taxes, Along with tax reform came the to adjustment using the
which made up 70% of total tax administrative reforms, such as there Consumer Price Index (CPI)
collection. structuring of the Department of Finance  Lease of residential units with
and its attached agency, the Bureau of monthly rental per unit of not
The tax system also remained Internal Revenue (BIR) through the more than 58,000, subject to
unresponsive. Taxes grew at an average Executive Order 127. adjustment using CPI
annual rate of 15% and generate a low  Sale, importation, printing, or
tax yield. Tax Collection and tax audits were publication of books and any
intensified; computerization was newspaper
Tax effort defined as the ratio between introduced; and corruption was relatively
the share of the actual tax collection in reduced, which improved the trust in the The succeeding term of President Joseph
gross domestic product and predictable BIR a general. Estrada in 1998 was too short to
taxable capacity, was at a low 10.7%. constitute any change in the tax system.
As a result of the tax reform of the
As Corazon Aquino took the helm of the Aquino administration, both tax and Then Vice President Gloria Macapagal-
government after the EDSA Revolution, revenue effort rose, increasing from Arroyo was swept to power through
she reformed the tax system through the 10.7% in 1985 to 15.4% in 1992. another EDSA Revolution.
1986 Tax Reform Program.
Greater political stability during the As president, she undertook increased
The aim was to improve the administration of Fidel Ramos a1999 government spending without adjusting
responsiveness of the tax system, allowed for continued economic growth. tax collections.
promote equity by ensuring that similarly
situated individuals and firms bear the The Ramos administration ventured into This resulted in large deficits from 2002
same tax burden, promote growth by its own tax reform program in 1997 to 2004 The government had to look for
withdrawing or modifying taxes that through the Comprehensive Dar Reform additional sources of revenue, and in
reduce incentives to work or produce, Program, which was implemented to 2005, the Expanded Value Added Tax
and improve tax administration by (1) make the tax system krad-based, (E-VAT) was signed into law as
simplifying the tax system and promoting simple, and with reasonable tax rates; Republic Act 9337.
tax compliance. (2) minimize tax smdance allowed by
existing flaws and loopholes in the This expanded the VAT base, subjecting
A major reform in the tax system system; to VAT energy products such as coal and
introduced under the term of Aquino was (3) encourage payments by increasing tax petroleum products and electricity
the introduction of the value-added tax exemptions levels, lowering the highest generation, transmission, and
(VAT), with the following features: tax rates, and simplifying procedure; and distribution. Select professional services
1. uniform rate of 10% on sale of (4) rationalize the grant of incentives, were also taxed.
domestic and imported goods and which was estimated to be worth 531.7
services and zero percent on exports and billion pesos in 1994. In February 2006, the VAT tax rate was
foreign-currency denominated sales; also increased from 10% to 12%.
2. ten (10) percent in lieu of varied rates The VAT base was also broadened in
applicable to fixed taxes (60 nominal 1997 to include services, through As President Benigno Aquino III
rates), advance sales tax, tax on original Republic Act 7716. succeeded President Arroyo in 2010, he
sale, subsequent sales tax, compensating promised that no new taxes would be
tax, miller's tax, contractor's tax, broker's The features of the improved VAT law imposed and additional revenue would
tax, film lessors and distributor's tax, were as follows: have to come from adjusting existing
excise tax on solvents and matches, and 1. Restored the VAT exemptions for all taxes.
excise tax on processed videotapes; cooperatives (agricultural, electric, credit
3. two percent tax on entities with annual or multipurpose, and others) provided The administration ventured into the
sales or receipts of less than 5,200,000; that the share capital of each member adjustment of excise tax on liquor and
4. adoption of tax credit method of does not exceed 515,000 pesos. cigarettes or the Sin Tax Reform,
calculating tax by subtracting tax on 2. Expanded the coverage of the term motivations for which was primarily
inputs from tax on gross sales; "simple processes” by including broiling fiscal, public health, and social order
5. exemption of the sale of basic and roasting, effectively narrowing the related considerations.
commodities such as agriculture and tax base for food products.
marine food products in their original 3. Expanded the coverage of the term Republic Act 10351 was passed, and
state, price-regulated petroleum products "original state” by including molasses. government revenues from alcohol and
and fertilizers; and 4. Exempted from the VAT are the tobacco excise taxes increased.
6. additional 20% tax on non-essential following: Collections from tobacco and alcohol in
articles such jewelry, perfumes, toilet  Importation of meat 2015 made up 1.1% of the Gross
waters, yacht, and other vessels for  Sale or importation of coal and Domestic Product and the improvement
pleasure and sports. natural gas in whatever form or in tax collection resulted in the
state Philippines receiving a credit rating
The VAT law was signed in 1986 and put  Educational services rendered upgrade into investment grade status.
to effect in 1988. by private educational
institutions duly accredited by The Sin Tax Reform was an exemplar on
While it was a reliable source of revenue the Commission on Higher how tax reform could impact social
for the government, new tax laws would Education (CHED) services as it allowed for the increase of
the Department of Health budget (triple
in 2015) and free health insurance
premiums for the poor people enrolled in
PhilHealth

increased (from 55.2 million in 2012 to

The administration of the new President

The present income tax scheme of the

The proposed tax reform also seeks to

It is hoped that reforms in the country's