AGRARIAN REFORM
Why do we need Agrarian Reforms
ALMOST HALF OF THE POPULATION IS EMPLOYED
IN THE AGRICULTURAL SECTOR
MOST CITIZENS LIVE IN RURAL AREAS
THROUGH REFORMS IT CAN GAIN MORE FROM
AGRICULTURAL SECTOR
TO ADDRESS POVERTY IN THE COUNTRY
UPLIFT THE LIVES OF FILIPINOS
AGRARIAN REFORM
Itis centered on the relationship between
production and the distribution of land
among farmers.
Itis also focused on the political and
economic class character of the relations of
production and distribution in farming
related enterprises.
AGRARIAN REFORM VS LAND REFORM
Land Reform Agrarian Reform
• Redistribution of land from • Comprise of not only the
government and private sources distribution of land and the
to the landless development of institutional
• Reform of tenure and provision supports to make farm work
of production and service successful but also
structure enhancement of the
economic, social and political
relations that concerns the
land and its users.
• Change of the Agrarian
Structure
Source: Fuwa 2010
LANDOWNERSHIP IN THE PHILIPPINES
UNDER SPAIN
Spanish brought the pueblo agriculture where rural
communities were organized in to a pueblo and given land
to cultivate.
Filipinos are not allowed to own a land , it was owned by
Spain
Filipinos were assigned to cultivate and paid their
colonial tributes to the Spanish authorities in form of
agricultural products.
Law of Indies
The Spanish crown awarded tracts of land to the ff;
A. religious orders
B. repartamientos for Spanish military as a reward for
their service
[Link] encomienderos who were given the
encomienda
Filipinos work on the land and paid their tribute to the
encomiendero.
Filipinos were not given the right to own a land and just work for
the Spaniards to have a share of crop and pay tribute.
The encomienda system was unfair and abusive as “compras y
vandalas”
A compras y vandalas system was practiced wherein tillers were
made to compulsory sell at a very low price or surrender their
agricultural harvests to Spanish authorities where encomienderos
can resell it for a profit.
Filipinosin the encomienda were also required to render
service to their encomiederos that are unrelated to farming.
Hacienda system replace encomienda system later on
In 1860’s enacted a law ordering landlords to register their
landholdings
Lands were claimed and registered in other people’s names
and many peasant families were driven out or force to come
under the power of the people who claim rights to the land.
Revolt : Agrarian in nature
Before Filipinos had communal
ownership of land.
Philippine revolution + freedom =
owning a land
LANDOWNERSHIP IN THE PHILIPPINES
UNDER AMERICANS
Landlessness as the issue of social unrest
Several land policies were introduced
Distribute ownership to a large number of tenants and
farmers.
The Philippine Bill of 1907
Act no.496 or the land registration act
Homestead program
The Philippine Bill of 1902
Provided regulations on the disposal of public
lands.
A private individual may own 16 hectares of land
while corporate landholders may have 1,024
hectares.
Act no.496 or the land registration act
Introducedthe Torrens system to address the
absence of earlier records of issued land titles and
conduct accurate land surveys.
Systemof land registration, issuing a certificate
of ownership
Homestead program
Allowstenants to enter into an agricultural
business by acquiring a farm of at least 16
hectares.
Therewas no limit to the size of landholdings people
could possess and accessibility of possession was
limited to those who could afford to buy ,register and
acquired fixed property titles.
Many were force to return to tenancy and wealthy
Filipino hacienderos purchased or forcefully took over
lands from farmers who could not afford to pay their
debts.
Land placed under tenancy led to a widespread peasants
uprising.
PresidentQuezon place a program that focused on the
purchase of haciendas which were divided and sold to
tenants.
Creation of the NARIC –NATIONAL RICE AND CORN
CORPORATION to assign public defenders to assist peasant
in court battles for their rights to the land
Court of Industrial Relation to exercise jurisdiction over
disagreements arising from landowner-tenant relationship.
The homestead program also continue through the
NATIONAL LAND SETTLEMENT ADMINISTRATION
POST-WAR INTERVENTION TOWARDS
AGRARIAN REFORM
President Roxas passed the R.A no.34 to establish a 70-30
sharing arrangement between tenant and landlord.
Attempted to redistribute hacienda lands
PresidentQuirino establish the LASEDECO or the land settlement
development corporation to accelerate and expand the
resettlement program from peasants.
NARRA- National Resettlement and Rehabilitation Administation
under Magsaysay
National resettlement and rehabilitation
administration
To give resettlement program and to
distribute agricultural lands to the
landless tenants and farmers.
[Link], 1199 or the agricultural tenancy act was
passed to govern the relationship between
landholders and tenant farmers, protecting the
tenurial rights of tenants and enforced tenancy
practices
Courtof agricultural relations was created to
improve tenancy security, fix land rental and resolve
dispute between landowners and peasant
organization
ACCFA- Agricultural tenancy was also created to
provide ware house facilities and assist farmers
to market their products.
Agricultural
and industrial bank to provide
easier terms in applying for homestead and
other farmlands
NARRA accelerated the government’s resettlement
program
Convince members of Huk’s to resettlement areas
Thelanded elite did not cooperate and they criticized
the programs.
Thesituation of the farmers remained dire because of
government lack of funds
Macapagal- Agricultural land reform code or R.A no. 3844
Thiscode abolished share tenancy in the Philippines and
prescribe a program to convert tenant-farmers to lessees and
later on owner-cultivators.
Aimed to free tenants from tenancy and emphasize owner
cultivator ship and farmer independence., equity, productivity
improvement and public land distribution.
Congress did not make any effort to come up will a separate
bill to funds its implementation.
AGRARIAN REFORM UNDER MARCOS
Presidential decree no.27 or the code of agrarian reform of
the Philippines became the core of agrarian reform during the
Marcos regime.
Operation lad transfer -7 hectares on rice and corn lands
Masagana 99 farmers were able to borrow from banks and
purchase 3 hectare plots of land
Many methods were employed by the elite to find way to
maintain their power and dominance.
POST 1986 AGRARIAN REFORM
July 22,1987- presidential proclamation 131 and executive order
299-land reform program
1988- CARL COMPREHENSIVE AGRARIAN REFORM LAW with a name
CARP
This enables redistribution of agricultural lands to tenant-farmers
from landowners.
CARP accomplish only 22.5 % of land distribution in 6 years with
congress dominated by elites.
Controversy about Hacienda Luisita
Under the time of President Ramos CARP was
implementation was speeded in order to meet the 10
year tie frame.
By1996 ,DAR distributed only 58.25% of the total area
targeted to be covered by the program.
Toaddress the lacking funding and the dwindling tome
for the implementation of CARP, Ramos signed R.A No.
8532 in 1998 to amend CARL and extend the program
for 10 years.
CARPER
CARP expired last 2008 leaving 1.2 million farmers beneficiaries
and 1.6 million hectares of agricultural lands to distributed to
farmers.
Arroyo signed R.A. No. 9700 or CARPER amended the law to
extend for 5 years more..
From 2009-2014 CARPER has distributed a total of 1 million
hectares of land to 900,000 farmer beneficiaries.
After 27 years of land reform 500,000 hectares of land remain
undistributed.
DAR and DENR to fulfill CARP and CARPER
PROBLEM? The powerful landed elite and the ineffectual
bureaucracy of the Phil. Government.
PHILIPPINE TAXATION
Taxation
Itis the process by which the
sovereign , through its lawmaking
body, raises revenues used to defray
expenses of government.
Pre-Colonial Philippines
• Barangay was the largest political group headed
by a chieftain or datu
• Some degree of stratification: Freemen, serfs, and
slaves
• Population is sparse, located mainly on the coast
and rivers and no large farms
• Land was generally communal and power was
commanded over labor and not on over land
Source: Fuwa 2000
Taxation in Spanish Philippines
Payment of tributes
System of reduccion by creating pueblos
Ecomienda system handle by the ecomienderos
Exempted to pay the tributes are the ff;
principals, alcaldes, gobernadores, cabeza de barangay,
soldiers and members of the civil guard, government
official and vagrants
Manila- Acapulco trade
Situado real delivered from the Mexican treasury to the
Philippines
In1884 tribute was replaced by poll tax through a
certificate of identification called the cedula
Payment of cedula is progressive and according to income
categories
Revenue collection increased and become main source of
gov. income
Two direct taxes were added in 1878 the urbana and
industria
Urbana is tax on the annual rental value of an urban real
estate
Industria is a tax on salaries, dividend and profits.
Indirecttaxes such as customs duties were imposed on
exports and imports
Polo system were introduced
Male were required to provide labor for 40 days reduced 15
days in 1884
Or pay the fallas of 3 pesos per annum
Taxation under Americans
Urbana was replaced by land tax- tax levied on both urban and rural
rea estates.
Tax evasion was prevalent among the elites
Internal revenue law of 1904 was passed that prescribe ten major
sources of revenue;
1. license taxes on firms dealing in alcoholic beverages and
tobacco
2. excise taxes on alcoholic beverages and tobacco products
3. taxes on banks and bankers
4. document, stamp, taxes
5. cedula
6. taxes on insurance and insurance
companies
7. taxes non forest products
[Link]
9. taxes on business and manufacturing
10. occupational licenses
Cedula rate was fixed per adult male
In1907 some provinces double the fee for cedula to
support the construction and maintenance of roads
Industrial tax was based on the business
profitability it also imposed a percentage tax on
sales payable quarterly
1913 Underwood-Simons Tariff Act was passed-
export taxes levied on sugar, tobacco and hemp
and copra were lifted
Internalrevenue imposed taxes on mines, petroleum
products, dealers of petroleum products and tobacco
In 1914 income tax was introduced
Inheritance tax was created
1932 national lottery was established to create more
revenue for the government
Taxation during the commonwealth
period
Income tax rates were increased in 1936
Income tax rates of corporation were also increased
In 1937 the cedula tax was abolished
In 1940 a residence tax was imposed on every citizen aged 18
years old and on every corporation.
In 1939 the commonwealth government drafted the national
internal revenue code introducing major changes in the new tax
system
NATIONAL INTERNAL REVENUE CODE
The normal tax of three percent and the surfax on income was
replaced by a single tax at a progressive rate.
Personal exemptions were reduced
Corporation income tax was slightly increased by introducing
taxes on inherited estates or gifts donated in the name of dead
person
The cumulative sales tax was replaced by a single turnover of 10
% on luxuries
Taxes on liquors ,cigarettes, forestry products, and mining were
increased
Dividends were made taxable
The Japanese Military administration
Continued the system of tax collection introduced
during the Commonwealth
Foreign trade fell and the major sources of taxation
came from amusements, manufacturers, professions
and business licenses.
Duringthe war additional income of the government
were derived from the sales of the National
sweepstakes and sales of government bonds
Fiscal policy from 1946 to present
During the time of Quirino new tax measures were passed
it includes higher corporate tax rates.
Magsaysay, Garcia and Macapagal promise to study the tax
structure through the Tax Commission of 1959 by means of
R.A no. 2211
From 1959-1968 Congress did not pass any tax legislation
Indirect tax still contributed to three quarters of tax
revenues
Omnibus tax law of 1969 did not increase the ratio of
income tax
Collection of tax remain poor
Under Marcos regime, tax system was still dependent to
indirect taxes which made up of 70% of the total tax
collection.
Taxesgrew at an average annual rate of 15% and
generated a low tax yield.
Shareof the actual tax collection in the gross domestic
product and predictable taxable capacity was at a low
10.7%
1986 Tax Reform Program
The aim was to improve the responsiveness of the tax system,
promote equity by ensuing that similarly situated individuals
and firms bear the same tax burden, promote growth by the
withdrawing or modifying taxes that reduce incentives to
work or produce, and improve tax administration by
simplifying the tax system and promoting tax compliance.
Introduced VAT
RAMOS ADMINISTRATION
Introduced the Tax Reform Program which was implemented to;
1. Make the tax system simple with reasonable tax rates
2. minimize tax avoidance
3. encourage payments by increasing tax exemption levels,
lowering the higher tax rates and simplifying procedures.
4. rationalize the grant of tax incentives
In2005 E-VAT was signed into law through
Republic Act 9337
In 2010 Aquino made adjustment on excise
tax on liquor and cigarettes or the Sin tax
reform
Train law under Duterte’s administration