18 Questions
What is the primary reason why governments raise revenue from the people they govern?
To improve the citizens' lives through good governance
What was the main economic system of the early Filipino communities before the arrival of the Spaniards?
Subsistence economy
What was the impact of the Spanish arrival on the subsistence economy of the early Filipino communities?
It led to the payment of tributos (tributes)
What did the Filipinos pay to the datus in some early Filipino communities?
Tribute or taxes, and labor services
What is the similarity between the payment of tributes in the Spanish colonies in America and the Philippines?
Both were imposed by the Spanish colonizers
Why is the payment of tribute or taxes in the early Filipino communities different from the contemporary meaning of taxation?
Because it was essentially different from the contemporary concept of taxation
What happened to the subsidy from Spain in 1820?
It stopped
What replaced the payment of tribute in 1884?
Poll tax
How was the payment of cédulas determined?
By income categories
Who was required to carry a cédula personal while traveling?
Every resident
How did the wealthy individuals fare under the cédula system?
They benefited from the system
How did the Chinese in the Philippines fare under the cédula system?
They paid more than Filipinos
What was the main purpose of generating resources in the islands?
To support the clergy and government officials
Who were exempted from paying tributos?
Government officials, soldiers, and principales
What was the solution to the difficulty faced by the Spaniards in revenue collection?
Creating pueblos through the system of reduccion
What was the significance of the Manila-Acapulco trade?
It sustained the European presence in the Philippines
How was the tribute paid by the Filipinos?
Half in cash and half in produce
What was the impact of the tribute system on the Filipinos' agricultural production?
It led to an increase in production to meet the demands of payments
Study Notes
Taxation in the Philippines
- Tax collection was poor in the Philippines, and the Spanish government relied on subsidies from Mexico through the situado real delivered by galleons.
- The subsidy stopped in 1820 when Mexico gained independence.
- In 1884, the payment of tribute was replaced by a poll tax collected through the cédula personal, a certificate of identification required from every resident.
- The cédula personal was progressive, with payment based on income categories, but it was a heavy burden for peasants and easy for the wealthy.
- The system led to a significant increase in revenue collection, becoming the main source of government income.
Social and Economic Impact
- The cédula personal was discriminatory towards the Chinese, who paid a higher rate than Filipinos.
- The purpose of the tax was to generate resources for maintaining the islands, including salaries of government officials and expenses of the clergy.
- The dispersed nature of the settlements made revenue collection challenging, which led to the introduction of the reduccion system, creating pueblos and awarding plots of land to till.
- The system exempted principales, including alcaldes, gobernadores, cabezas de barangay, soldiers, members of the civil guard, government officials, and vagrants.
Evolution of Taxation
- The Filipinos' subsistence economy was disrupted by the imposition of tributos by the Spanish colonizers.
- The payment of tributos was similar to the system practiced in other American colonies.
- The Manila-Acapulco trade was established through the galleons, which improved the economy of the Philippines and reinforced Spanish control.
- The system evolved over time, with half of the tribute being paid in cash and the rest with produce, financing the conquest of the Philippines.
Test your knowledge on the history and development of taxation in the Philippines. Learn how taxation has evolved over time and its significance in the country's governance. Understand the role of taxation in the Philippine government's functioning and its impact on citizens' lives.
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