Philippine History Past Paper PDF 1987

**UNIT 4: SOCIAL, POLITICAL, ECONOMIC, and CULTURAL** **ISSUES IN PHILIPPINE HISTORY** **4.0 Learning Objectives** a. To analyze social, political, economic, and cultural issues in the Philippines using the lens of history. b. To recognize that the problems of today are consequences of...

**UNIT 4: SOCIAL, POLITICAL, ECONOMIC, and CULTURAL** **ISSUES IN PHILIPPINE HISTORY** **4.0 Learning Objectives** a. To analyze social, political, economic, and cultural issues in the Philippines using the lens of history. b. To recognize that the problems of today are consequences of decisions and events that happened in the past. c. To understand several enduring issues in Philippine society through history. d. To propose the recommendations or solutions to present-day problems based on the understanding of the past and anticipation of the future through the study of history. **4.1 Introduction** This chapter is dedicated to enduring issues in Philippine society, which history could lend a hand in understanding, and hopefully, proposing solutions. These topics include the mandated discussion on the Philippine constitution, policies on agrarian reform, and taxation. It is hoped that these discussions will help us propose recommendations or solutions to present-day problems based on our understanding of root cause and how we anticipate future scenarios in the Philippine setting. **4.2 Lesson/Discussion with Assessment** **4.2.1 Evolution of the Philippine Constitution** **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 a part of a 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 our country: the *1935 Commonwealth Constitution***,** the *1973 Constitution,* and the *1986 Freedom Constitution***.** However, there were earlier constitutions attempted by Filipinos in the struggle to break free from the colonial yoke. 1. ***[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 1 November 1897. The Constitution, borrowed from Cuba, was written by *Isabelo Artacho* and *Felix Ferrer* in Spanish, and later on, translated in Tagalog. The organs of the government under the Constitution were the ff: - ***Supreme Council*-** was vested with the power of the Republic, headed by the President and four department secretaries: the *interior, foreign affairs, treasury,* and *war.* - ***Consejo Supremo de Gracia Y Justicia* (Supreme Council of Grace and Justice) --** was given the authority to make decisions and affirm or disprove the sentences rendered by other courts and to dictate rules for the administration of justice. - ***Asamblea de Representantes* (Assembly of Representatives)-** was convened after the revolution to create a new Constitution 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 and the Philippine Revolutionary Army. 2. ***[1899: Malolos Constitution ]*** The *Philippine Declaration of Independence* was issued on *12 June 1898*, together with several decrees that formed the First Philippine Republic. 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*. The document they came up with, *approved by the Congress on 29 November 1898*, and *promulgated by Aguinaldo on 21 January 1899*, was titled *"The Political Constitution of 1899"* and written in Spanish. The constitution has 39 articles divided into 14 titles, with 8 articles of transitory provisions, and a final additional article. The document was patterned after the Spanish Constitution 0f 1812, with influences from the charters of Belgium, Mexico, Brazil, Nicaragua, Costa Rica, and Guatemala, and the French Constitution of 1793. According to *Felipe Calderon*, main author of the constitution, these countries were studied because they shared similar social, political, ethnological, and governance conditions with the Philippines. Prior constitutional projects in the Philippines also influenced the Malolos Constitution, namely, the *Kartilya,* and the *Sanggunian- Hukuman,* the charter of laws and morals of the Katipunan written by Emilio Jacinto in 1896; the *Biak-na-Bato Constitution of 1897* planned by Isabelo Artacho; Mabini's *Constitutional Program of the Philippine Republic of 1898;* the provisional constitution of Mariano Ponce in 1898 that followed the Spanish constitutions; and the autonomy projects of Paterno in 1898. 3. ***[1935: The Commonwealth Constitution]*** The Philippines was subject to the power of the United States of America, effectively the new colonizers of the country after the Treaty of Paris. From 1898 to 1901, the Philippines would be placed under a military government would be put into place. Two acts of the United States Congress were passed that may be considered to have qualities of constitutionality: - ***Philippine Organic Act of 1902*** -- the first organic law for the Philippine Islands that provided for the creation of a popularly elected Philippine Assembly. The act specified that legislative power would be vested in a bicameral legislature composed of Philippine Commission as the upper house and the Philippine Assembly as lower house. - ***Philippine Autonomy Act of 1916*** -- commonly known as "Jones Law", which modified the structure of the Philippine government through the removal of the Philippine Commission, replacing it with a Senate that served as the upper house and its members elected by the Filipino voters, the first truly elected national legislature. **Hare-Hawes-Cutting Act** - the United States Congress passed the act with the promise of granting Filipinos' independence with the efforts of the Filipino independence mission led by Sergio Osmena and Manuel Roxas in 1932. The bill was opposed by then Senate President Manuel L. Quezon and consequently, rejected by the Philippine Senate. **Tydings-McDuffie Act** - 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 United States would live up to its promise to grant independence to the Philippines. 4. ***[1973 Constitutional Authoritarianism]*** When martial law was declared, the Constitutional Convention, by virtue of an Act of Congress in 1971, was in the process of drafting a new Constitution. The final draft was adopted by the Convention on November 29, 1972. This was ratified and proclaimed by President Marcos on January 17, 1973 amidst widespread protest and controversy. With the proclamation of a new Constitution, the presidential form of government was changed to a modified parliamentary form. Congress was abolished and was replaced by an elected unicameral National Assembly, known as Batasang Pambansa. The Batasang Pambansa was made up of a maximum of 200 members elected for, different provinces with their component cities, highly urbanized cities and districts of Metropolotan Manila, appointed representatives from various sectors such as the youth, agricultural and industrial labor sectors, and those chosen by the President from the members of the Cabinet. The Members had a term of six years. 5. ***[1897 Constitution After Martial Law]*** Ruling by decree during the early months of her tenure as a president installed via the [People Power Revolution](https://en.wikipedia.org/wiki/People_Power_Revolution), **President [Corazon Aquino](https://en.wikipedia.org/wiki/Corazon_Aquino) was granted three options: restore the 1935 Constitution, retain and make reforms to the 1973 Constitution, or pass a new constitution**. She decided to draft a new constitution and issued Proclamation No. 3 on March 25, 1986, abrogating many of the provisions of the 1973 Constitution adopted during the Marcos regime, including the [unicameral legislature](https://en.wikipedia.org/wiki/Unicameral_legislature) (the Batasang Pambansa), the office of [Prime Minister](https://en.wikipedia.org/wiki/Prime_Minister_of_the_Philippines), and provisions which gave the President legislative powers. Often called the **\"Freedom Constitution\".** The **Constitutional Commission was composed of forty-eight members** appointed by Aquino from varied backgrounds, including several former members of the [House of Representatives](https://en.wikipedia.org/wiki/House_of_Representatives_of_the_Philippines), former justices of the [Supreme Court](https://en.wikipedia.org/wiki/Supreme_Court_of_the_Philippines), a Roman Catholic bishop, and political activists against the Marcos regime. The Commission elected [Cecilia Muñoz-Palma](https://en.wikipedia.org/wiki/Cecilia_Mu%C3%B1oz-Palma), a former Associate Justice of the [Supreme Court](https://en.wikipedia.org/wiki/Supreme_Court_of_the_Philippines), as its president. Several issues were of particular contention during the Commission\'s sessions, including the form of government to adopt, the abolition of the death penalty, the retention of U.S. bases in [Clark](https://en.wikipedia.org/wiki/Clark_Air_Base) and [Subic](https://en.wikipedia.org/wiki/Subic_Bay_Naval_Base), and the integration of economic policies into the constitution. [Lino Brocka](https://en.wikipedia.org/wiki/Lino_Brocka), a film director and political activist who was a member of the Commission, walked out before the constitution\'s completion, and two other delegates dissented from the final draft. The Commission finished the final draft on **October 12, 1986** and presented it to Aquino on October 15. The constitution was ratified by a [nationwide plebiscite on **February 8, 1987**](https://en.wikipedia.org/wiki/1987_Philippine_constitutional_plebiscite). The constitution provided for **three governmental branches,** namely **the [executive](https://en.wikipedia.org/wiki/Executive_(government)), [legislative](https://en.wikipedia.org/wiki/Legislature), and [judicial branches](https://en.wikipedia.org/wiki/Judiciary)**. The executive branch is headed by the president and his appointed cabinet members. The executive, same with the other two co-equal branches, has limited power. This is to ensure that the country will be \"safeguarded\" if martial law is to be declared. The president can still declare martial law, but it expires within 60 days and Congress can either reject or extend it. The task of the Supreme Court is to review whether a declaration of martial law is just. The legislative power consists of the Senate and the House of Representatives. There are **twenty-four senators** and the **House is composed of district representatives.** It also created opportunities for under-represented sectors of community to select their representative through party-list system. The judiciary branch comprises the Supreme Court and the lower courts. The Supreme Court is granted the power to hear any cases that deals with the constitutionality of law, about a treaty or decree of the government. It is also tasked to administrate the function of the lower courts. Through the constitution, three independent Constitutional Commissions, namely the Civil Service Commission, Commission on Elections, and Commission on Audit, were created. These Constitutional Commissions have different functions. The constitution also paved a way for the establishment of the Office of the Ombudsman, which has a function of promoting and ensuring an ethical and lawful conduct of the government. 6. ***[Attempts to Amend or Change the 1987 Constitution]*** There are three possible methods by which the [Constitution](https://en.wikipedia.org/wiki/Constitution) can be amended: a [Constituent assembly](https://en.wikipedia.org/wiki/Constituent_assembly) (Con-Ass), [Constitutional Convention](https://en.wikipedia.org/wiki/Constitutional_convention_(political_meeting)) (Con-Con), or [People\'s Initiative](https://en.wikipedia.org/wiki/People%27s_Initiative). All three methods require [ratification](https://en.wikipedia.org/wiki/Ratification) by majority vote in a national [referendum](https://en.wikipedia.org/wiki/Referendum). Following the administration of [Corazon Aquino](https://en.wikipedia.org/wiki/Corazon_Aquino), succeeding administrations made several attempts to [amend](https://en.wikipedia.org/wiki/Amendment) or change the 1987 Constitution. The first attempt was in 1995. A constitution was drafted by then-Secretary of [National Security Council](https://en.wikipedia.org/wiki/National_Security_Council_(Philippines)) [Jose Almonte](https://en.wikipedia.org/wiki/Jose_T._Almonte), but was never completed because it was exposed to the media by different non-government organizations. They saw through a potential change regarding the protection of the people\'s interests in the constitutional draft. In 1997, the Pedrosa couple created a group called PIRMA followed with an attempt to change the constitution through a People\'s Initiative by way of gathering signatures from voters. Many prominent figures opposed the proposition, including Senator [Miriam Defensor-Santiago](https://en.wikipedia.org/wiki/Miriam_Defensor_Santiago), who brought the issue all the way to the [Supreme Court](https://en.wikipedia.org/wiki/Supreme_Court_of_the_Philippines) and eventually won the case. The Supreme Court ruled that the initiative not continue, stating that a People\'s Initiative requires an enabling law for it to push through. During his presidency, [Joseph Ejercito Estrada](https://en.wikipedia.org/wiki/Joseph_Estrada) created a study commission for a possible charter change regarding the economic and judiciary provisions of the constitution. The attempt never attained its purpose after various entities opposed it due apparently to the attempt serving the personal interests of the initiators. After the Estrada presidency, the administration of [Gloria Macapagal-Arroyo](https://en.wikipedia.org/wiki/Gloria_Macapagal_Arroyo) endorsed constitutional changes via a Constitutional Assembly, with then-House Speaker [Jose de Venecia](https://en.wikipedia.org/wiki/Jose_de_Venecia_Jr.) leading the way. However, due to political controversies surrounding Arroyo\'s administration, including the possibility of term extension, the proposal was rejected by the Supreme Court. The next attempt was from then-Speaker of the House [Feliciano Belmonte Jr](https://en.wikipedia.org/wiki/Feliciano_Belmonte_Jr.). during President [Benigno Aquino III](https://en.wikipedia.org/wiki/Benigno_Aquino_III)\'s administration. Belmonte attempted to introduce amendments to the Constitution focusing on economic provisions aiming toward liberalization. The effort did not succeed. President [Rodrigo Roa Duterte](https://en.wikipedia.org/wiki/Rodrigo_Duterte) oversaw the possibility of implementing federalism on the country. Following his ascension as president after the [2016 presidential election](https://en.wikipedia.org/wiki/2016_Philippine_presidential_election), he signed [Executive Order No. 10](https://en.wikipedia.org/wiki/Philippine_Executive_Order_10) on December 7, 2016, creating the Consultative Committee to Review the 1987 Constitution. **4.2.2 Policies on Agrarian Reform** ***Agrarian reform*** is essentially the rectification of the whole system of agriculture, an important aspect of the Philippine economy because nearly half of the population is employed in the agricultural sector, and most citizens live in rural areas. Agrarian reform is centered on the relationship between production and the distribution of land among farmers. It is also focused on the political and economic class character of the relations of production and distribution in farming and related enterprises, and how these connect to the wider class structure. Through genuine and comprehensive agrarian reform, the Philippines would be able to gain more from its agricultural potential and uplift the Filipinos in the agricultural sector, who have been, for the longest time, suffering in poverty and discontent. 1. ***[Landownership in the Philippines under Spain]*** Land ownership was privatized when the Spaniards came to the Philippines. They introduced *encomienda* (Royal Lord Grants) into the system, where uncultivated lands not within a municipality's area were given to Spaniards by the Spanish monarch. *Encomiendas* were under the protection of *encomienderos,* mostly Spanish officials and clerics, who oversee, maintain order, and support missionaries within the land. For their work, they are given the power to collect tribute from the native Filipinos or *indios.* Law of Indies: a. *Religious orders* b. *Repartamientos* for Spanish military as reward for their service c. Spanish *encomenderos*  In the beginning of 19^th^ century *Hacienda* developed. *Hacienda system* was developed as a new form of ownership. In 1860s, Spain enacted a law ordering landholders to register their landholdings. 2. ***[Landownership in the Philippines under Americans]*** The *Philippine bill of 1902* provided regulations on the disposal of lands. A private *individual* may own *16 hectares* of land while *corporate landholders* may have *1,024 hectares.* Americans were also given rights to own agricultural lands in the country. The Philippines commissions also enacted Act No. 496 or the Land Registration Act, which introduced the Torrens system to address the absence of earlier records of issued land titles and conduct accurate land surveys. In 1903, the homestead program was introduced, allowing a tenant to enter into an agricultural business by acquiring a farm of at least 16 hectares. 3. ***[Post-War Interventions Toward Agrarian Reform]*** Restoration and innovation after the war were engrossed on providing solutions to the problems of the previous administration of President Roxas handed Republic Act No. 34 to establish 70-30 sharing arrangement between tenant and landowner, correspondingly, which reduced the interest of landowners' mortgages to tenants at six percent or less. The government also tried to reallocated hacienda lands, deteriorating prey to despairs of similar actions since no provision was given to small agrarians who were given lands. The Land Settlement Development Corporation (LASEDECO), under the period of Elpedio Quirino, was established to accelerate and expand the resettlement program for famers, this agency later on became the National Resettlement and Rehabilitation Administration (NARRA) under the government of President Ramon Magsaysay. Magsaysay saw the significance of pursuing genuine land reform program and persuaded the Congress, majority of which were elite owners, to pass legislation to develop the land reform situation. NARRA improved the government's relocation program and dissemination of agricultural lands to landless tenants and agrarians. It also intended to persuade members of the Huks, a movement of rebels in Central Luzon, to relocate in areas where they could resume their lives as peaceful citizen. A major pace in land reform arrived during the term of President Diosdado Macapagal over the Agricultural Land Reform Code (Republic Act No. 3844). This code eliminated share occupancy in the Philippines and prescribed a program to transform tenant-farmers to boarders and later on owner-cultivators. It also aimed to allowed tenants from tenancy and emphasize owner-cultivatorship and agrarian individuality, equality, equity, productivity improvement, and public land dissemination. 4. ***[Agrarian Reform Efforts under Marcos]*** President Marcos declared Martial Law in 1972, enabling him to essentially wipe out the landlord-dominated Congress. Through his "technocrats," he was able to expand executive power to start a "fundamental restructuring" of government, including its efforts in solving the deep structural problems of the countryside. Presidential Decree No. 27 or the Code of Agrarian Reform of the Philippines became the core of agrarian reform during Marcos regime. *Operation Land Transfer* on lands occupied by tenants of more than seven hectares on rice and corn lands commenced, and through legal compulsion and an improved quality of support services to small farmers, agrarian reform seemed to be finally achievable. Under the rice self-sufficiency program *"Masagana '99."* Famers were able to borrow from banks and purchase three-hectare plots of lands and agricultural inputs.  5. ***[Post-1986 Agrarian Reform]*** President Corazon Aquino envisioned agrarian reform to be the centerpiece of her administration's social legislation, which proved difficult because her background betrayed her -- she came from a family of a wealthy and landed clan that owned the Hacienda Luisita. On 22 July 1987, Aquino issued Presidential Proclamation 131 and Executive Order 229, which outlined her land reform program. In 1988, the Congress passed Republic Act No. 6657 or the Comprehensive Agrarian Reform Law (CARL), which introduced the program with the same name (Comprehensive Agrarian Reform Program or CARP). CARP implementation was speeded under the term of President Ramos in order to meet the ten -- year time frame, despite limitations and constraints in funding, logistics, and participation of involved sectors. By 1996, the Department of Agrarian Reform (DAR) distributed only 58.25% of the total area target to be covered by the program. Ramos signed Republic Act No. 8532 in 1998 to address the lacking funding and the dwindling time for the implementation of CARP to amend CARL and extend the program to another ten years. 6. ***[CARPER and the Future of Agrarian Reform in the Philippines]*** **Comprehensive Agrarian Reform Program Extension with Reforms** known also as **CARPER** is the amendatory law that extends again the deadline of distributing agricultural lands to famers for five years. It also amends other provisions stated in CARP. In December 2008, the budget for CARP expired and there remained 1.2 million hectares of agricultural land waiting to be acquired and distributed to farmers. CARPER was signed into law on August 7, 2009 by Gloria Macapagal Arroyo and was set to expire on June 30, 2014. However, the program of distributing lands to farmer-beneficiaries continued even after June 2014. Section 30 of RA 9700 or CARPER law states that cases on the matter which are still pending "shall be allowed to proceed to its finality and be executed even beyond such date." **4.2.3 Evolution of Philippine Taxation** **Taxation** is the term for when a taxing authority, usually a government, levies or imposes a financial obligation on its citizens or residents. Paying taxes to governments or official has been a mainstay of civilization since ancient times (Kagan, 2021). In today's world, taxation is a reality that all citizens must contend with for the primary reason that governments raise revenue from the people they govern to be able to function fully. In exchange for the taxes that people pay, the government promises to improve the citizens' lives through good governance. 1. ***[Taxation in Spanish Philippines]*** When Spaniards came in the Philippines, they started to collect *"tributos"* (tributes). The purpose is to generate resources to finance the maintenance of the islands such a salaries of government officials and expenses of the clergy. The difficulty of the Spaniards in revenue collection was solved by introducing the system of *reduccion* by creating *pueblos --* where Filipinos gathered and awarded plots of land to till. Later on, the settlements will be handled by *encomenderos* who received rewards from the Spanish crown for their services. Exempted from tributes were the *principals: alcaldes, gobernadores, cabezas de barangay,* soldiers, and members of the civil guard, government officials, and vagrants. Toward the end of sixteenth century, the *Manila -- Acapulo trade* was established through the galleons, a way by which the Spaniards could make sure that European presence would be sustained. Force labor was a character of Spanish colonial taxation and was required from the Filipinos. Through the *polo* system, male Filipinos were obligated to serve which results to deaths in seventeenth century. Males are required to provide 40 days per annum. In 1884, the payment of tribute was put to a stop because of *"cedula".* It is a poll tax collected through a certificate of identification. The payment of *cedulas* is by person, not by family. This system was a heavy burden for the peasants and was easy for the wealthy. Two direct taxes were added in 1878 and imposed in urban incomes. *Urbana* is a tax on the annual rental value of an urban real estate and *industria* is a tax on salaries, dividends, and profits. Taxation in the Philippines during the Spanish colonial period was characterized by the heavy burden placed on the Filipinos. 2. ***[Taxation under the Americans ]*** Americans aimed to make the economy self-sufficient by running the government with the possible sum revenue and create surplus in the budget. From 1898 to 1903, the Americans followed the Spanish system of taxation with some modifications. Later on, the *Urbana* would be replace by tax on real estate, which became known as land tax. The problem with the tax was that land titling in the rural area was very disorderly. **The Internal Revenue Law of 1904 -** was passed as a reaction to the problems of collecting land tax. It prescribed ten (10) major sources of revenue: 1. Licensed 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. The *cedula;* 6. Taxes on insurance and insurance companies; 7. Taxes on forest products; 8. Mining concessions; 9. Taxes on business and manufacturing; and 10. Occupational licenses. In 1907, some provinces were authorized to double the fee for the *cedula* to support the construction and maintenance of roads. In 1913, the *Underwood -- Simmons Tariff Act* was passed, resulting in a reduction in the revenue of the government as export taxes levied on sugar, tobacco, hemp, and copra were lifted. New sources of taxes were introduced later on. In 1914, an income tax was introduced; in 1919, an inheritance tax was created; and in 1932, a national lottery was established to create more revenue for the government. However, these new creations were not enough to increase government revenues. 3. ***[Taxation during the Commonwealth Period]*** Income tax rates were increased in 1936, adding a surtax rate on individual net incomes in excess of 10,000 pesos. Income tax rates of corporations were also increased. In 1937, the *cedula* tax was abolished, which appeared to be progressive move; but 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, as follows: 1. The normal tax of three percent and the surtax on income was replaced by a single tax at a progressive rate. 2. Personal exemptions were reduced. 3. Corporation income tax was slightly increased by introducing taxes on inherited estates or gifts donated in the name of dead persons. 4. The cumulative sales tax was replaces by a single turnover tax of 10% on luxuries. 5. Taxes on liquors, cigarettes, forestry products, and mining were increased. 6. Dividends were made taxable. Finally, a common character of taxation during the American occupation in the Philippines was not used to diversify the economy or direct economic development as some sectors still carried the disproportionate share of the tax burden. 4. ***[Fiscal Policy from 1946 to Present]*** - During the time of **President Elpidio Quirino,** the impetus of economic growth came through the implementation of import and exchange controls that led to import substitution development. - While **Magsaysay, Garcia, and Macapagal** promised to study the tax structure and policy of the country to make way for a robust and efficient tax collection scheme, post-war fiscal policy remained regressive. The period of the post-war republic also saw a rise in corruption. - The tax system under the **Marcos** administration was generally regressive as it was heavily dependent on indirect taxes, which made up 70% of total tax collection. - **Corazon Aquino** reformed the tax system through the 1986 Tax Reform Program when she took the helm of the government after the EDSA Revolution. The aim was to improve the responsiveness of the tax system, promote equity by ensuring that similarly situated individuals and firms bear the same tax burden, promote growth by withdrawing or modifying taxes that reduce incentives to work or produce, and improve tax administration by simplifying the tax system and promoting tax compliance. - The **Ramos** administration had budget surpluses for four of its six years in power. The government benefited from the massive sale of government assets and continued to benefit from the 1986 TRP. - **President Estrada**, who assumed office at the height of the Asian financial crisis, faced a large fiscal deficit, which was mainly attributed to the sharp deterioration in the tax effort and higher interest payments given the sharp depreciation of the peso during the crisis. - The **Arroyo** administration in 2001 inherited a poor fiscal position that was attributed to weakening tax effort and rising debt servicing costs. The Expanded Value-Added Tax (E-VAT) was signed into law as Republic act 9337 as an additional sources of revenue. - **President Benigno Aquino III** promised that no new taxes would be imposed and additional revenue would have to come from adjusting existing taxes. The administration ventured into the adjustment of excise tax on liquor and cigarettes or the Sin Tax Reform. The Sin Tax Reform was an exemplar on how tax reform could impact social services. - The administration of the new **President Rodrigo Duterte** promised tax reform, particularly in income taxes as it vowed to lower income tax rates shouldered by working Filipinos. **UNIT 4 ASSESSMENT** **Name: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Course/Year/Section: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** **Professor: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Subject: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** A. **True or False.** Write **true** if the statement is true. Otherwise, write **false** in the space provided. **4.3 References** *Taxation*. (2021). Investopedia. Division 6, I. C. (2021). *BIR History - Bureau of Internal Revenue*. Bureau of Internal Revenue. **4.4 Acknowledgment** The information contained in this learning packet were taken from references cited above.