MODULE-4 (1) PDF

Social, Political, Economics, and MODULE 4 Cultural Issues in Philippine History Hooray to a new academic year! The journey in this pandemic has been tough yet MODULE CONTENTS...

Social, Political, Economics, and MODULE 4 Cultural Issues in Philippine History Hooray to a new academic year! The journey in this pandemic has been tough yet MODULE CONTENTS you made it. New normal has come, but the learning must continue. This would be pretty exciting! As we start digging LESSON 1: through this course pack, we will focus on the topics dedicated to Evolution of the enduring issues in Philippine Philippine society, which history could lend a hand in understanding, and Constitution hopefully, proposing solutions. LESSON 2: Policies These topics include the mandated discussion on the on Agrarian Reform Philippines constitution, policies LESSON 3: on agrarian reform, and taxation. Evolution of Philippine Taxation Intended Learning Outcomes At the end of Module 4, you should be able to: Analyze social, political, economic, and cultural issues in the Philippines using the lens of history. Recognize that the problems of today are consequences of decisions and events that happened in the past. Develop understanding several enduring issues in Philippine society through history Able to propose recommendations or solutions to present-day problems based on the understanding of the past and anticipation of the future through the study of history  LESSON “We cannot free ourselves unless we 1 Evolution of the Philippine Constitution move forward united in a single desire - Emilio Aguinaldo TIME FRAME TAKE THE CHALLENGE! In this lesson, challenge yourself to: a. generate statement describing the social and cultural issues in the Philippine b. compare and contrast different constitution over the years and c. produce an essay/reflection paper base on the history of the government of the Philippines. G E T T I N G S T A R T E D Hello student! Let us fill this lesson with curiosity. For sure, you will enjoy this lesson because this is the part where we explore the history f our beloved motherland came to life. In this lesson, your curiosity will be answered by understanding the past government that made our government what it is now.. Of course, let us familiarized the different types of constitution that has been passed over the years and the importance it is in the Philippine government. Enjoy! A C T I V I T Y TRUE OR FALSE Hi student! You are now challenge to identify whether the statements is true or false. Do your best and analyse each sentences to determine the right answer.  A C T I V I T Y _____1. The Constitution of Biak-na-Bato was fully implemented and was signed between the Spanish and the Philippine Revolutionary Army. _____2. The Constitution of Biak-na-Bato was borrowed for Cuba and was written by Isabelo Artacho and Felix Ferrer in Spanish but was later translated in Tagalog. _____3. The Spanish were defeated by the American in the Battle of Manila Bay on May 1, 1898. _____4. The Malolos Constitution was influenced by the Spanish Constitution of 1812. _____5. The 1899 Malolos Constitution was fully enforced despite the ongoing war. _____6. On December 10, 1898, the Philippines was effectively a territory of the United States upon signing of the Treaty of Paris between Spain and US. _____7. The first organic law for the Philippine Islands on that provided for the creation of a popularly elected Philippine Assembly was the Philippine Organic Act of 1902. _____8. The Philippine Independence Act was also known as the Hare- Hawes-Cutting Act. _____9. The Philippine Court system is vested with the power of judiciary, and is composed of a Supreme Court and lower courts as created by law. ____10. Only the House of Congress can initiate the impeachment of the president, members of the Supreme Court, and other constitutionally protected public officials such as the Ombudsman.  A C T I V I T Y Define the Word! For this activity, you are challenge by your remembering skills. Do you still remember the definition of the important words in the lesson? Well, this time, we will test your skill on this activity. Define the following words based on the previous topic. 1. Constitution _______________________________________________________ _______________________________________________________ ____________________________. 2. Hare-Hawes Act _______________________________________________________ _______________________________________________________ ____________________________ 3. Tyding Mcduffie - Act _______________________________________________________ _______________________________________________________ ______________________________ 4. Constitution of Biak-na-Bato _______________________________________________________ _______________________________________________________ ____________________________ 5. Malolos Constitution _______________________________________________________ _______________________________________________________ ____________________________  A N A L Y S I S Hello student! How was your experience with the activities? Are you having fun? If so, that is great. Right now, let us try to wrap up your experiences with the two activities. Let us try to answer the following questions: Base on the lesson, what is the best Constitution for the Filipino People in today’s time? ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ _____________________________________. Do you think that by opposing the Hare-Hawes-Cutting Act, known as granting Filipino’s independence was a good decision for the Filipinos at the time? Why or Why not? ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ____________________________________. What is your opinion of the Treaty of Paris? Did the Filipino benefitted with the Treaty? ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ___________________________________.  A B S T R A C T I O N Phil. Constitution Constitution is defined as a set of fundamental principles or established models according to which 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, 1899 MALOLOS CONSTITUTION with the same principles and ideals. These principles define the nature and extent of After the signing of the truce, the Filipino government revolutionary leaders accepted a payment from Spain and went to exile in Hong Kong. Upon the defeat of the United States Navy transported Aguinaldo back to the Philippines. The Malolos Constitution was a newly reformed Philippine revolutionary 1897 BIAK-NA-BATO forces reverted to the control of Aguinaldo, and the Philippine Declaration of Biak-na-Bato was the provisionary Independence was issued on June 12, 1898, Constitution of the Philippine Republic together with several decrees that formed during the Philippine Revolution, and was the First Philippine Republic. The Malolos promulgated by the Philippines Congress was elected, which selected a Revolutionary Government on 1 commission to draw up a draft constitution November 1897. The Constitution, on September 17, 1898, which was borrowed from Cuba, was written by composed of wealthy and educated men. Isabelo Artacho and Felix Ferrer in Spanish and later translated to Tagalog. The document they came up with, approved by the Congress on Nov. 29, 1898, The organs of the government under the and promulgated by Aguinaldo on Jan. 21, Constitution were: (1) the Supreme 1899, was titled “The Political Constitution of Council, which was vested with the power 1899” and written in Spanish. The of the Republic, headed by the president Constitution has 39 articles divided into 14 and four department secretaries; the titles, with eight articles of transitory interior, foreign affairs, treasury, and war; provisions, and a final additional article. The (2) the Consejo Supremo de Gracia Y document was patterned after the Spanish Constitution of 1812, with influences from Justicia (Supreme Council of Grace and the charters of Belgium, Mexico, Brazil, Justice), which was given the authority to Nicaragua, Costa Rica, and Guatemala, make decisions and affirm or disprove the and the French Constitution of 1793. These sentences rendered by other courts and countries were studied because they to dictate rules for the administration of shared similar social, political, ethnological , justice; and (3) the Asamblea de and governance conditions with the Representantes (Assembly of Philippines Prior constitutional, namely, the Representatives), which was to be Kartilya and the Sanggunian-Hukuman, the convened after the revolution to create a charter of laws and morals of the Katipunan new Constitution and to elect a new written by Emilio Jacinto in 1896; the Biak-na- Council of Government and Bato Constitution of 1897 planned by Representatives of the people. Isabelo Artacho; Mabini’s Constitutional Program of the Philippine Republic of 1898; The Constitution of Biak-na-Bato was the provisional constitution of Mariano never fully implemented, since a truce, Ponce in 1898 that followed the Spanish the Pact of Biak-na-Bato was signed constitutions; and the autonomy projects of between the Spanish and the Philippine Paterno in 1898. Revolutionary Army. Primary Source: Preamble of the Political Constitution of 1899 We, the Representatives of the Filipino People, lawfully convened, in order to establish justice, provide for common defense, promote the general welfare A permanent commission seven, elected and insecure the benefits of liberty , by the assembly, and granted specific imploring the aid of the Sovereign powers by the constitution, was to sit Legislator of the Universe for the during the intervals between sessions of attainment of these ends, have voted, the assembly. decreed, and sanctioned the following political constitution Executive powers was vested in the president, and elected by a constituent As a direct challenge to colonial assembly of the Assembly of authorities of the Spanish empire, the Representatives and special sovereignty was retroverted to the representatives. The resident will serve a people, a legal principle underlying the term of four year without re-election There Philippine Revolution. The people was no vice president, and I case of a delegated governmental functions to civil vacancy, a president was to be selected servants while they retained actual by the constituent assembly. sovereignty. The 27 articles of the Title IV detail the natural rights and popular The 1899 Malolos Constitution was never sovereignty of Filipinos, the enumeration was never enforced due to the ongoing of which does not imply the prohibition of war. The Philippines was effectively a any other rights not expressly stated. Title territory of the United States upon the III, Article V also declares that the State signing of the Treaty of Paris between recognizes the freedom and equality of all Spain and the United States transferring beliefs, as well as the separation of sovereignty of the Philippines on Church and State. These are direct December 10, 1898. reactions to features of the Spanish government in the Philippines, where the friars were dominant agents of the state. The form of government, according to Title II, Article 4 is to be popular, representative, alternative, and responsible, and shall exercise three distinct powers – legislative, executive, and judicial. The legislative power was vested in a unicameral body called the Assembly of Representatives, members of which are elected for terms of four years. Secretaries of the government were given seats in the assembly, which meet annually for a period of at east three months. Bills could be introduced either by the president or by a member of the assembly. Some powers not legislative in nature were also given to the body, such as the right to select its own officers, right of censure and interpellation, and the right of impeaching the president, cabinet members, the chief justice of the Supreme Court, and the solicitor-general. 1935: The Commonwealth Constitution By 1934, another law, the Tydings-McDuffie From 1898 to 1901, the Philippines would Act, also known as the Philippine be placed under a military government Independence Act, was passed by the until a civil government would be put United States Congress that provided into place. authority and defined mechanisms for the establishment of a formal constitution by a constitutional convention. The members of Two acts of the United States Congress the convention were elected and held their were passed that may be considered to first meeting on 30 July 1934, with Claro M. have qualities of constitutionality. First Recto unanimously elected as president. was the Philippine Organic Act of 1902, the first organic law for the Philippine The constitution was crafted to meet the islands that provided for the creation of approval of the United States government, a popularly elected Philippine and to ensure that the United States would Assembly. The act specified that live up to its promise to grant independence legislative power would be vested in a to the Philippines bicameral legislature composed of the Philippine Commission as the upper house and the Philippine Assembly as lower house. Key provisions of the act included a bill of rights for Filipinos and the appointment of two non-voting Filipino Resident Commissioners of the Philippines as representative to the United States House of Representatives. The second act that functioned as a constitution was the Philippine Autonomy Act of 1916, commonly referred to 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 Primary Source: Preamble of the 1935 Filipino voters, the first truly elected Commonwealth national legislature. It was also this Act that explicitly declared the purpose o The Filipino people, imploring the aid the United States to end their of Divine Providence, in order to sovereignty over the Philippines and establish a government that shall recognize Philippine independence as embody their ideals, conserve and soon as a stable government can be established. develop the patrimony of the nation, promote the general welfare, and In 1932, with the efforts of the Filipino secure to themselves and their independence mission led by Sergio posterity the blessings of Osmeña and Manuel Roxas, the United independence under a regime of States Congress passed the Hare- justice, liberty, and democracy, do Hawes-Cutting Act with the promise of ordain and promulgate this granting Filipinos independence. The bill constitution was opposed by the Senate President Manuel L. Quezon and consequently, rejected by the Philippine Senate. The constitution created the Commonwealth of the Philippines, an CONSTITUTION AUTHORITARIANISM administrative body that governed the Philippines from 1935 to 1946 It is a transitional administration to prepare the country toward its full achievement of In 1965, Ferdinand E. Marcos was elected independence. It originally provided for a president, and in 190. Philippine Congress unicameral National Assembly with a passed a resolution calling for a constitutional convention to change the president and vice president elected to a 1935 Constitution. six. year term without re-election. It was amended in 1940 to have a bicameral Marcos won the re-election 1969, in a bid Congress composed of a Senate and a boosted by campaign overspending and House of Representatives, as well as the use of government funds. Elections of the creation of an independent electoral delegates to the constitutional convention commission, and limited the term of were held on 20 November 1970, and the office of the president and vice president convention began formally on 1 June 1871, to four years, with one re-election Rights with former President Carlos P. Garcia being to suffrage were originally afforded to elected a convention president. male citizens of the Philippines who are Unfortunately, he died, and was wounded twenty-one years of age or over and are by another former president, Diosdado able to read and write; this was later on Macapagal. extended to women within two years after the adoption of the constitution Before the convention finished its work, While the dominant influence in the Martial Law was declared Marcos cited a constitution was American, it also bears growing communist insurgency as reason traces of the Malolos Constitution, the for the Martial Law, which was provided for German, Spanish, and Mexican in the 1935 Constitution. Some delegates of constitutions, constitutions of several the ongoing constitutional convention were South American countries, and the placed behind bars and others went into unwritten English Constitution. The draft of hiding or were voluntary exiled. With the constitution was approved by the Macron as dictator, the direction of the constitutional convention on 8 February convention turned, with accounts that the president himself dictated some provisions 1935, and ratified by the U.S. President of the constitution, manipulating the Franklin B. Roosevelt on 25 March 1935. document to be able to hold on to power Elections were held in September 1935 for as long as he could. On 29 November and 1979, the convention approved its Manuel L Quezon was elected President proposed constitution. of the Commonwealth, The Commonwealth was briefly interrupted The constitution was supposed to introduce by the events of the World War II, with the a parliamentary style government, where Japanese occupying the Philippines. legislative power was vested in a Afterward, upon liberation, the Philippines unicameral National was declared an independent republic Assembly, with members being elected to a on 4 July 1946 six-year term. The president was to be elected as the symbolic and ceremonial head of state chosen from the members of the National Assembly. The president would serve a six-year term and could be re- elected to an unlimited number of terms. Executive power was relegated to the Prime Minister, who was also the head of government and Commander-in-Chief of the Armed Forces who was also to be elected from the National Assembly. President Marcos issued Presidential Decree The situation in the 1980s had been very No: 73 setting the date of the plebiscite to turbulent. As Marcos amassed ratify or reject the proposed constitution on power. discontent has also been 30 November 1973. This plebiscite was burgeoning. The tide turned swiftly when in postponed later on since Marcos feared that August 1983, Benigno Aquino Jr., opposition the public might vote to reject the leader and regarded as the most credible constitution. Instead of a plebiscite, Citizen alternative to President Marcos, was Assemblies were held from 10-15 January assassinated while under military escort 1973, where the citizens coming together and immediately after his return from exile in the voting by hand, decided on whether to ratify United States. There was widespread the constitution, suspend the convening of suspicion that the order to assassinate the Interim National Assembly, continue Aquino came from the top levels of the government and the military. This event Martial Law, or place a moratorium on caused the coming together of the non elections for a period of at least several years. violent opposition against the Marcos The President, on 17 January 1973, issued a authoritarian regime. Marcos was then proclamation announcing that the proposed forced to hold "snap elections a year early, constitution had been ratified by an and said elections were marred by overwhelming vote of the members of the widespread fraud. Marcos declared himself highly irregular Citizen Assemblies. winner despite international condemnation and A small nationwide protests. A group of The constitution was amended several times military rebels attempted to stage a coup, In 1976, Citizen Assemblies unite again, but failed; however, this triggered what decided to allow the continuation of Martial came to be known as the EDSA people Power Revolution of 1986, as people from all Law, as well as approved the amendment: walks of life spilled onto the streets Under an Interim Batasang Pambansa to substitute pressure from the United States of America, for the Interim National Assembly, the who used support Marcos and his Martial president to also become the Prime Minister Law, the Marcos family led into exile His ad continue to exercise legislative power until opponent in the snap elections, Benigno Martin Law was lifted and authorized the Aquino Jr.’s widow, Corazon Aquino, was President to legislate on his own on an installed as president on 25 February 1986, emergency basis. An overwhelming majority would ratify further amendments 1987 CONSTITUTION AFTER MARTIAL succeedingly. In 1980, the retirement age of LAW members of the judiciary was extended to 70 years. In 1981, the parliamentary system was President Corazon Aquino’s government formally modified to French-style, semi- had three options regarding the presidential system where executive power constitution: revert to the 1935 Constitution, was restored to the president, who was once retain the 1973 Constitution and be granted again, to be directly elected; an Executive the power to make reforms, or start anew Committee was to be created, composed of and break from the “vestiges of a disgraced the Prime Minister and 14 others, that served dictatorship.” They decided to make a new as the president's Cabinet; and some constitution that, according to the president electoral reforms were instituted. In 1984, the herself, should be “truly reflective of the aspirations and ideals of the Filipino Executive Committee was abolished and the people.” position of the vice president was restored. After all the amendments introduced, the 1973 Constitution was merely a way for the President to keep executive powers, abolish the Senate, and by any means, never acted as a parliamentary system, instead functioned as an authoritarian presidential system, with all the real power concentrated in the hands of the president, with the backing of the constitution. In March 1986, President Aquino proclaimed a transitional constitution to last for a year while a Constitutional Commission drafted a permanent constitution. This transitional constitution, called the Freedom Constitution, maintained many provisions of the old one, including in rewritten form the presidential right to rule by decree. In 1986, a constitutional convention was created, composed of 48 members appointed by President Aquino from varied backgrounds and representations. The convention drew up n permanent constitution, largely restoring the setup abolished by Marcos in 1972, but with new ways to keep the The legislative power resides in a Congress president in check, a reaction to the divided into two Houses: the Senate and the experience of Marcos rule. The new House of Representatives. The 24 senators are constitution was officially adopted on 2 elected at large by popular vote, and can February 1987. serve no more than two consecutive six year terms. The House is composed of district The Constitution begins with a preamble representatives representing a particular and eighteen self-contained articles. It geographic area and makes up around 80% of established the Philippines as a "democratic the total number of representatives. There are republican State where "sovereignty resides 234 legislative districts in the Philippines that in the people and all government authority elect their representatives to serve three-year emanates from them." It allocates term. The 1987 Constitution created a party-list governmental powers among the system to provide spaces for the participation executive, legislative, and judicial branches of under represented community sectors or of the government. groups. Party-list representative may in up not more than 20% of the seats in the House. The Executive branch is headed by the president and his cabinet, whom he Aside from the exclusive power of legislation, appoints. The president the head of the Congress may also declare war, through a two- state and the chief executive, but his power thirds vote in both upper and lower houses. The is limited by significant checks from the two power of legislation, however, is also subject to other co-equal branches of government, an executive check, as the president retains especially during times of emergency. This is the power to veto or stop n bill from becoming put in place to safeguard the country from a law. Congress may the experience of martial law despotism only override this power with a two-thirds vote during the presidency of Marcos. In cases of in both houses. national emergency, the president may still declare martial law, but not longer than a The Philippine Court system is vested with the period of sixty days. Congress, through a power of the judiciary, and is composed of a majority vote, can revoke this decision, or Supreme Court and lower courts an created by extend it for a period that they determine. law. The Supreme Court is a 15-member court The Supreme Court may also review the appointed by the president without the need to declaration of martial law and decide if be confirmed by Congress. The appointment there were sufficient justifying facts for the the president makes however, is limited to a list act. The president and the vice president of nominees provided by a constitutionally are elected at large by a direct vote, specified Judicial and Bar Council. The serving a single six-year term. Supreme Court Justices may hear, on appeal, any cases dealing with the constitutionality of any law, treaty, or decree of the government, case in where questions of jurisdiction or judicial error are concerned, or cases where the penalty is sufficiently grave. It may also exercise original jurisdiction over cases involving government or international officials. The Supreme Court is also in charge of overseeing the functioning and administration of the lower courts and their personnel. The Constitution also established three independent Constitutional Commissions, namely, the Civil Service Commission, a central agency in charge of government personnel: the Commission on Elections, mandated to enforce and administer all election laws and regulations, and the Commission on Audit, which examines all funds, transactions, and property accounts of the government and its agencies. To further promote the ethical and lawful conduct of the government, the Office of the Ombudsman was created to investigate complaints that pertain to public corruption, unlawful behavior of public officials, and other public misconduct. The Ombudsman can charge public officials before the Sandiganbayan, a special court created for this purpose. Only the House of Representatives can initiate the impeachment of the president, members of the Supreme Court, and other constitutionally protected public officials such as the Ombudsman. The Senate will then try the impeachment case. This is another safeguard to promote moral and ethical conduct in the government. Changing the Constitution is a perennial issue that crops up, and terms such as "Cha-Cha," "Con-Ass," and "Con-Con" are regularly thrown around Article XVII of the 1987 Constitution provides for three ways by which the Constitution can be changed. Congress (House of Representatives and the Senate) may convene as a Constituent Assembly for Con Ass) to propose amendments to the Constitution. It is not clear, however, if Congress is to vote as a single body or separately. How the Congress convenes an a Con-Ass is also not provided for in the Constitution. Another method is through the Constitutional Convention for Con Con), where Congress, upon a vote of two- third of all its members, calls for constitutional convention. They may also submit to the electorate the question of calling a convention through a majority vote of all its members. In a Con-Con, delegates will propose amendments or revision the constitution, not Congress. The 1987 Constitution does not provide for a method by which delegates to the Con-Con are chosen. The Third method is called the "People's Initiative" (or PI). In this method, amendments to the Constitution may be proposed by the people upon petition of at least 12% of the total number of registered voters. An legislative districts must be represented by at least 1 of the registered Quotes therein. No amendment is allowed more than once every five years since a successful PI. The 1987 Constitution directs the Congress to enact a law to implement provisions of the PI, which has not yet materialized. Amendments or revision to the constitution shall be valid only when ratified by a majority of the votes cast in a national referendum  The administration of the succeeding President Benigno Aquino III had no marked interest in charter change, except those emanating from different members of Congress, including the Speaker of the House, Feliciano Belmonte Jr. who attempted to introduce amendments to the Constitution that concern economic provisions that aim toward liberalization. This effort did not see the light of day. ATTEMPTS TO CHANGE THE 1987 CONSTITUTION In an upsurge of populism, President The 1987 Constitution provided for the method Rodrigo Duterte won the 2016 by which the Constitution can be amended, all presidential elections in a campaign requiring ratification by a majority vote national centering on law and order, referendum. These methods were Constituent proposing to reduce crime by killing Assembly Constitutional Convention, and tens of thousands of criminals. He is People's Initiative. Using these modes there were efforts to amend or change the 1987 also known advocate of federalism, Constitution, starting with the presidency of Fidel a compound mode of government V. Ramos who succeeded Corazon Aquino The combining a central or Federal first attempt was in 1905, when the Secretary of government with regional National Security Council. Jose Almonte drafted governments in a single political a constitution, but it was exposed to the media system This advocacy is in part an and it w prospered. The second effort happened in 1907, when a group called PIRMA influence of his background, being a hoped to gather signatures from voters to local in Mindanao that has been change the constitution through a people's mired in poverty and violence for initiative. Many were against this including the decades 7 December 2016, Senator Miriam Defensor-Santiago, who brought President Duterte signed an the issue to court and won-with the Supreme executive order creating consultative Court judging that a people's initiative cannot push through without an enabling law. committee to review the 1987 Constitution. The succeeding president, Joseph Ejercito Estrada, formed a study commission to investigate the issues surrounding charter change focusing on the economic and judiciary provisions of the constitution. This effort was also blocked by different entities, After President Estrada was replaced by another People Power and succeeded by his Vice President, Gloria Macapagal- Arroyo, then House Speaker Jose de Venecia endorsed constitutional change through a Constituent Assembly, which entails a two-thirds vote of the House to propose amendments or revision to the Constitution. This initiative was also not successful since the term of President Arroyo was mired in controversy and scandal, including the possibility of Arroyo extending her term as president, which the Constitution does not allow.  A P P L I C A T I O N REFLECTION PAPER ESSAY We are almost done, I just want to Nearly there. For this one, I wan to see if you truly understand the know our own perspective on this topic, therefore, I want to know subject matter. You are free to write your opinion on the two your own point of view. Why do you Constitution. If given the chance think the previous Presidents of the to choose between Malolos Republic of the Philippines kept on Constitution and Biak-na-Bato trying to amend the 1987 Constitution, what will you choose Constitution? Please write a 240 and why? Please write a 250 word word Reaction Paper Essay in a one Reflection Essay in a 1 whole sheet whole sheet of paper. of paper.  LESSON 2 “Man – despite his artistic pretensions, his sophistication, and his many accomplishments – Policies on Agrarian Reform owes his existence to a six inch layer of topsoil and the fact that it rains - unknown TIME FRAME TAKE THE CHALLENGE! In this lesson, challenge yourself to: a. show familiarity to different agrarian reforms ; and b. explain the difference between types of landownership in the Philippines; G E T T I N G S T A R T E D It is now Lesson 2 and let us keep the curiosity about our country’s rich history. Do you ever wonder what was ownership in the Philippine was like during the Spanish and American colonization? If so, do you know that Filipino farmers faced too many hardship, unlike the freedom we are enjoying now? In this lesson, you will learn more about the history of our mother country on the hands of the colonist and the laws that were passed for the benefit of the Filipino farmers. Enjoy! A C T I V I T Y TRUE OR FALSE Hi student! You are now challenge to identify whether the statements is true or false. Do your best and analyse each sentences to determine the right answer. _____1. Pablo is the system of agriculture brought by the Spaniards when they colonized the country. _____2. During the Spanish periods, Filipino families were allowed to own a land. _____3. The King of Spain owned the land in the Philippines. T _____4. There were 4 Law of Indies wherein the Spanish crown awarded land. ______5. The hacienda system was developed as early as the 15th century. ______6. The primary revolts of the Filipino people were often cause by the agrarian in nature. ______7. The Americans were not aware why Filipino were restless against the Spaniards. ______8. The Sakdal or Sakdalista Uprising was a peasant rebellion in Central Luzon on May 1935. _____9. President Quezon’s administration created the NARIC and NLSA. ______10. Under President Fidel V. Ramos, the LADESCO was created. A C T I V I T Y ACRONYMS Identify the following Acronyms and explain their role in the Agrarian Reform. 1. NARIC - ______________________________________________ 2. NLSA - _______________________________________________ 3. LASEDECO - __________________________________________ 4. ACCFA - ______________________________________________ 5. NARRA - _____________________________________________ 6. CARP - _______________________________________________ 7. CARL - _______________________________________________ 8. DAR - _______________________________________________ 9. CARPER - _____________________________________________ 10. DENR - ______________________________________________  A N A L Y S I S 3. How will you differentiate the landownership in the Philippines with the Spanish government vs. the American government? ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________. 4. What could be the other Agrarian Reform you can suggest to the government for the improvement of the farming industry? _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________. 5. Why agrarian reform is important for the Filipino Farmers? _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________. A B S T R A C T I O N LANDOWNERSHIP UNDER SPAIN When the Spaniards colonized the country, they brought with them a system of pueblo agriculture, POLICIES ON AGRARIAN REFORM where rural communities, often dispersed and scattered in nature, were organized into pueblo and given land to cultivate. Agrarian reform is essentially the rectification of the whole system of agriculture, an important Families were not allowed to own their land-the King aspect of the Philippine economy because of Spain owned the land, and Filipinos were assigned nearly half of the population is employed in the to these lands to cultivate them, and they paid their agricultural sector, and most citizens Iive in rural colonial tributes to the Spanish authorities in the areas Agrarian reform is centered on the form of agricultural products. relationship between production and the Later on, through the Law of the Indies, the Spanish distribution of land among farmers. It is also crown awarded tracts of land to (1) religious orders, focused on the political and economic class (2) repartimientos for Spanish military w for their character of the relations of production and service, and (3) Spanish encomenderos, those distribution in farming and related enterprises, mandated to manage the encomienda or the land and how these connect to the wider class given to them, where Filipinos worked and paid their structure. Through genuine and comprehensive tribute to the encomendero. Filipinos were not then agrarian reform, the Philippines would be able the right to own land, and only worked in them so to gain more from its agriculture! potential and that they might have a share the crops and pay uplift the Filipinos in the agricultural sector, who tribute. The encomienda system was an unfair and have been for the longest time suffering in abusive system as "compras y vandalas" became the poverty and discontent. norm for the Filipino farmer working the land they were made to sell their products at a very low price or surrender their products to the encomenderos, who resold this at a profit. Filipinos in the encomienda were also required to render services to their encomenderos that were unrelated to farming.  LANDOWNERSHIP UNDER AMERICANS The American we aware that the main cause of social unrest in the Philippines was landlessness, and they attempted to put an end to the deplorable conditions of the tenant farmers by passing several land policies to increase the small landholders From this encomienda system, the hacienda and distribute ownership to bigger number system developed in the beginning of the of Filipino tenants and farmers. nineteenth century as the Spanish government implemented policies that would fast track the The Philippine Bill of 1902 provided entry of the colony into the capitalist world. regulations on the disposal of public lands. A The economy was tied to the world market in private individual may own 16 hectares of the Philippines became an exporter of raw Land while corporate landholders may have materials and importer of goods. Agricultural 1,024 hectares. Americans were also given exports were demanded and the hacienda rights to own agricultural lands in the system was developed as a new form of country. The Philippine Commission also ownership. In the 1860s, Spin enacted a law enacted Act No. 496 or the Land ordering landholders to register their Registration Act, which introduced the Landholdings, and only those who knew Torrens system to address the absence of benefitted from this, Lands were claimed and earlier records of issued land titles and registered in other people's names, and many peasant families who were assigned" to the conduct accurate land surveys. In 1903, the land in the earlier days of colonization were homestead program was introduced, driven out or forced to come under the power allowing a tenant to enter into an of these people who claimed rights to the land agricultural business by acquiring a farm of because they held a title. at least 16 hectares. This program. however, was limited to areas in Northern Luzon and This is the primary reason why revolts in the Mindanao, where colonial penetration had Philippines were often agrarian in nature. been difficult for Americans, n problem they Before the colonization. Filipinos and inherited from the Spaniards. communal ownership of land. The system introduced by the Spaniards became a bitter Source of hatred and discontent for the Filipinos. Religious orders, the biggest landowners in the Philippines, also became a main source of abuse and exploitation for the Filipinos, increasing the rent paid by the Filipinos on a whim. Filipinos fought the Philippine Revolution in a confluence of motivations, but the greatest desire for freedom would be the necessity of owning land. Upon the end of the Philippine Revolution, the revolutionary Government would declare all large landed estates, especially the confiscated friar lands as government property. However, the first Philippine republic was short-lived. The entrance of the Americans would signal a new era of colonialism and imperialism in the Philippines. Land Ownership did not improve during the American period; in fact, it even worsened, because there was no limit to the size of landholdings people could possess and the accessibility of possession was limited to those who could afford to buy, register, and acquire fixed property titles. Not all friar lands acquired by the Americans were given to landless peasant farmers. Some lands were sold or leased to American and Filipino business interest. This early land reform program was also implemented without support mechanisms-if a landless peasant farmer received land, he only received land, nothing more. Many were forced to return to tenancy and wealthy Filipino hacienderos purchased or forcefully took over lands from farmers who could not afford to pay The Sakdal (or Sakdalista) Uprising their debts. The system introduced by the was a peasant rebellion in Central Americans enabled more lands to be placed under tenancy, which led to widespread Luzon that lasted for two days, May 2- peasant uprisings, such as the Colorum and 3, 1935. It was emails crushed by Sakdal Uprising in Luzon. Peasants and workers government force then, but this found refuge from millenarian movements that historical event tells of the social gave them hope that change could still happen inequality brought about by issues in through militancy. land ownership and tenancy in the During the years of the Commonwealth country The Filipino word sakdal government, the situation further worsened as means "to accuse," which is the title peasant uprisings increased and Landlord- of the newspaper helmed by Benigno tenant relationship became more and more Ramos. He rallied support from Manila disparate. President Quezon laid down a social and nearly provinces through the justice program focused on the purchase of publication, which led to the haciendas, which were to be divided and sold to tenants. His administration also created the establishment of the Partido National Rice and Corn Corporation (NARIC) Sakdalista in 1993 They demanded sign public defenders to assist peasants in court forms from the government, such as battles for their rights to the land, and the Court the abolition of taxes and equal of Industrial Relations to exercise jurisdiction over common ownership of land, among disagreements arising from landowner tenant others. They also opposed the relationship. The homestead program also continued through the National Land dominant Nacionalista Party Settlement Administration (NLSA). Efforts toward acceptance of gradual agrarian reform by the Commonwealth failed independence from the United States because of many problems such as budget and instead demanded immediate allocation for the settlement program and severance of ties with America. widespread peasant uprisings, World War II put a halt to all interventions to solve these problems as the Japanese occupied the country For new party with a small clout, they did well in the 1934 general elections, scoring three stents in the House of Representatives and several local posts. This encouraged them to attempt an uprising in 1935. Upon being crushed, Ramos fled to Tokyo and the Partido Sakdalista collapsed.  NARRA Accelerated the government's resettlement program and distribution of agricultural lands to landless tenants and farmers. It also aimed to convince members of the Hula, a movement of rebels in Central Luzon, to settle in areas where they could restart their lives a peaceful citizens. Despite a more vigorous effort toward agrarian reform, the situation for the farmers remained dire since the government lacked funds and provided inadequate support services for the program, The landed elite did not fully cooperate and they criticized the programs. A major stride in land warm arrived during the term of President Diosdado Macapagal through POST-WAR INTERVENTIONS TOWARD AGRARIAN the Agricultural Land Reform Code (Republic Act No. 3844) REFORM Rehabilitation and rebuilding after the war were focused on providing solutions to the problems of Primary Source: Declaration of Policy under RA the past. The administration of President Roxas 3844 or Agricultural Land Reform Code pantsed Republic Act No. 34 to establish a 70-30 sharing arrangement between tenant and landlord, Source Section 2. Declaration Policy-It in the respectively, which reduced the interest of policy of the State: landowners' loans to tenants at six percent or less. (1) To establish owner –cultivatorship and the The government also attempted to redistribute economic family-size farm as the basis of Philippine agriculture and, as a hacienda lands, falling prey to the woes of similar consequence, divert landlord capital in attempts since no support was given to small agriculture to industrial development. farmers who were given lands. (2) To achieve a dignified existence for the small farmers free from pernicious Under the term of President Elpidio Quirino, the Land institutional restraints and practices; Settlement Development Corporation (LASEDECO) (3) To create a truly viable social and economic was established to accelerate and expand the structure in agriculture conducive to greater resettlement program for peasants. This agency productivity and higher farm incomes later on became he National Resettlement and (4) To apply all labor laws equally and without Rehabilitation Administration (NARRA) under the discrimination to both industrial and administration of President Ramon Magsaysay. agricultural wage camera: provide a more vigorous and systematic land resettlement Magsaysay saw the importance of pursuing (5) To program and public and distribution and genuine land reform program and convinced the (6) To make the small farmers more Congress, majority of which were landed elites to independent, self-reliant and responsible pass legislation to improve the Land reform situation. citizens, and source of genuine strength in Republic Act No. 1199 the Agricultural Tenancy Act our democratic society. was passed to govern the relationship between landholders and tenant farmers, protecting the This Code abolished share tenancy in the tenurial rights of tenants and enforced tenancy Philippines and prescribed a program to practices. Through this law, the Court of Agricultural convert tenant-farmers to lessees and later on Relations was created in 1955 to improve tenancy owner-cultivators It also need to free tenant from tenancy and emphasize owner security, fix Iand rentals of tenanted farms, and cultivatorship and farmer independence, equity resolve land disputes filed by the landowners and productivity improvement and public land peasant organizations. The Agricultural Tenancy distribution. Despite being one of the most Commission was also established to administer comprehensive pieces of land reform legislation problems created by tenancy. The Agricultural ever passed in the Philippines, Congress did not Credit and Cooperative Financing Administration make any effort to come up with a separate bill (ACCFA) was also created mainly to provide to fund its implementation, despite the fact that warehouse facilities and assist farmers in marketing it proved beneficial in the provinces where pilot their products. The administration spearheaded the tested. establishment of the Agricultural and Industrial Bank to provide easier terms in applying for homestead and other farmland  In case of default, the amortization due shall be paid by the farmers cooperative in which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him: The government shall guaranty such amortizations with shares of stock in government-owned and government controlled corporations; No title to the land owned by the tenant- farmers under this Decree shall be actually issued to a tenant-farmer unless and until the AGRARIAN REFORM EFFORTS UNDER MARCOS tenant-farmer has become a full-fledged member of a duly recognized farmers President Marcos declared Martial Law in 1972, cooperative; enabling him to essentially wipe out the landlord-dominated congress. Through his Title to land acquired pursuant to this “technocrats,” he was able to expand Decree or the Land Reform Program of the executive power to start a “fundamental Government shall not be transferable restructuring” of government, including its except by hereditary succession or to the efforts in solving the deep structural problems Government in accordance with the of the countryside. Presidential Decree No. 27 provisions of this Decree, the Code of or the Code of Agrarian Reform of the Agrarian Reforms and other Philippines became the core of agrarian existing laws and regulations; reform during Marcos regime. The Department of Agrarian Reform through Primary Source: Presidential Decree No. 27, 21 its Secretary is hereby empowered to October 1972 promulgate rules and regulations for the implementation of this Decree. This shall apply to tenant farmers of private agricultural lands primarily devoted to rice and "Operation Land Transfer" on Indian corn under a system of sharecrop or lease- occupied by tenants of more than even tenancy. hectares on rice and corn lands whether classified as landed estate or not: commenced, and through lexical The tenant farmer, whether in land classified compulsion and an improved delivery of as landed estate or not. shall be deemed support services to small farmers, agrarian owner of a portion constituting a family-size reform deemed to be finally achievable. farm of five (5) hectares if not irrigated and Under the rice self-sufficiency program three (3) hectares if irrigated: "Masagana '99," farmers were able to borrow from banks and purchase three- In all cases, the landowner may retain an area hectare plots of lands and agricultural inputs of not more than seven However, the landlord class still found ways (7) hectares if such landowner is cultivating to circumvent the law. Because only rice such area or will now cultivate it: lands were the focus of agrarian reform, some landlords only needed to change For the purpose of determining the cost of the group to be exempted from the program, land to be transferred to the tenant farmer such as coconut and sugar lands. Lands pursuant to this Decree, the value of the land worked by wage labor were also exempt shall be equivalent to two and one-half (2 1/2) from the program, 0 the landed elite only times the average harvest of three normal crop had to evict their tenants and hired workers years immediately preceding the promulgation instead Landlessness increased, which made of this Decree: it all the more difficult for the program to succeed because landless peasants were The total cost of the land, including interest at excluded from the program Many other the rate of six (6 per centum per annum, shall methods were employed by the elite to find be paid by the tenant in fifteen (15) years of a way to maintain their power and fifteen (15) equal annual amortizations domination, which were worsened by the corruption of Marcos and his cronies.  POST-1986 AGRARIAN REFORM Under the term of President Ramos, CARP implementation was speeded in order to The overthrow of Marcos and the 1987 meet the ten year time frame, despite Constitution resulted in a renewed interest and limitations and constraints in funding, logistics, attention to agrarian reform as President and participation of involved sectors. By 1996, Corazon Aquino envisioned agrarian reform to the Department of Agrarian Reform (DAR) be the centerpiece of her administration's social distributed only 68.25% of the total area legislation, which proved difficult because her target to be covered by the program, To background betrayed her she came from a address the lacking funding and the family of a wealthy and landed clan that dwindling time for the implementation of owned the Hacienda Luisita. CARP, Ramos signed Republic Act No. 8532 in 1998 to amend CARL and extend the On 22 July 1987, Aquino issued Presidential program to another ten years. Proclamation 131 and Executive Order 229, which outlined her land reform program. In CARPER AND THE FUTURE OF AGRARIA 1989, the Congress passed Republic Act No. REFORM IN THE PHILIPPINES 6657 or the Comprehensive Agrarian Reform Law (CARL), which introduced the program with The new deadline of CARP expired in 2008, the same name (Comprehensive Agrarian leaving 1.2 million ferm beneficiaries and 1.6 Reform Program or CARP), It enabled the million hectares of agricultural land to be redistribution of agricultural lands to tenant- distributed to farmers. In 2009, President farmers from landowners, who were paid in Arroyo signed Republic Act No 9700 the exchange by the government through just Comprehensive Agrarian Reform Program compensation and allowed them to retain not Extension with Reforms (CARPER), the more than five hectares. Corporate landowners amendatory law that extended the deadline were, however, allowed under law to voluntarily to five moreyears Section 30 of the law also divest a proportion of their capital stock, equity, mandates that any case and/or proceeding or participation in favor of their workers or other involving the implementation of the provision qualified beneficiaries instead of turning over of CARP, an amended, which may remain their land to the government. pending on 30 June 2014 shall be allowed to proved to it finality and executed even CARP was limited because it accomplished very beyond such date. little during the administration of Aquino It only accomplished 22.5% of land distribution in six From 2009 to 2014, CARPER has distributed a years owing to the fact that Congress, total of 1 million hectares of land to 900,000 dominated by the landed elite, was unwilling to farmer beneficiaries. After 27 years of land fund the high compensation costs of the reform and two Aquino administrations, program. It was also mired in controversy, since 500,000 hectares of Lands remain Aquino seemingly bowed down to the pressure undistributed. The DAR and the Department of her relatives by allowing the stock of Environment and Natural Resources (DENR) redistribution option. Hacienda Luisita are the government agencies mandated to reorganized itself into a corporation and fulfill CARP and CARPER, but even the distributed stocks to farmers, combined effort and resources of the two agencies have proved incapable of fully achieving the goal of agrarian reform in the Philippines. The same problems have plagued its implementation the powerful landed elite and the ineffectual bureaucracy of the Philippine government. Until these two challenges are surmounted, genuine agrarian reform in the Philippines remains but a dream to Filipino farmers who have been fighting for their right to land ownership for centuries  CARPER AND THE FUTURE OF AGRARIAN REFORM The new deadline of CARP expired in 2008, leaving 1.2 million farmer beneficiaries and 1.6 million hectares of agricultural land to be distributed to farmers. In 2009, President Arroyo signed Republic Act No. 9700 or the Comprehensive Agrarian Reform Program Extension with Reforms (CARPER), the amendatory law that extended the deadline to five more years. Section 30 of the law also mandates that any case and/or proceeding involving the implementation of the provisions of CARP, as amended, which may remain pending on 30 June 2014 shall be allowed to proceed to its finality and executed even beyond such date. A P P L I C A T I O N ESSAY AND REFLECTION We are almost done, I just Nearly there. For this one, I wan want to see if you truly to know our own perspective on this subject matter. You are understand the topic, free to write your own point of therefore, I want to know view Compare the LASEDECO of your opinion on the topic. President Elpidio Quirino vs. the Compare the Agrarian Reform NARRA of President Ramon efforts of President Marcos vs. Magsaysay. Choose the best program President Aquino. Explain the between the two President and choose which do you think benefitted difference between the efforts the Filipino people more. Write in a of the two presidents and one whole sheet of paper with choose which has the best minimum of 250 words. policy. Write in a one whole sheet of paper with minimum of 250 words.  LESSON 3 “Ang pagsusumikap at pagpipilit na kumita ng ikakabuhay ay nagpapahayag ng Evolution of Philippine Taxation tunay na pagmamahal sa sarili, sa asawa, anak, kapatid, at kababayan.” - Andres Bonifacio TIME FRAME TAKE THE CHALLENGE! In this lesson, challenge yourself to: a. exhibit familiarity to the different taxation in the history of Philippines; b. discuss the difference between taxation during the Spanish, American and Commonwealth and up to present era; G E T T I N G S T A R T E D Bring it on, student! You are now on the last lesson of this module. As we explore through this module, we have learned about different taxation that the country has experienced from the Spanish era up to the resent.. In this lesson, you will learn more about the history of taxation in the Philippines and the experience of the Filipino throughout the years. A C T I V I T Y TRUE OR FALSE Hi student! You are now challenge to identify whether the statements is true or false. Do youR best and analyse each sentences to determine the right answer.  1. In 1986 five percent tax on entities with annual sales or receipts of less than 5,200,000. 2. The VAT base was also broadened in 1997 to include services. 3. Expanded Value-Added Tax (E-VAT) was signed into law as Republic Act 9337. 4. Taxes on liquors, cigarettes, forestry products, and mining were decrease in the year 1939. 5. Collections from tobacco and alcohol in 2015 made up 1.5% of the Gross Domestic Product. 6. In 1992 Fidel Ramos allowed for continued economic growth. 7. Under the Marcos authoritarian regime, the tax system remained progressive. 8. From 1959 to 1968, Congress did not pass any tax legislation despite important changes in the economy. 9. National lottery was established to create more revenue for the government in 1932. 10. Urbana is a tax on the annual rental value of an urban real state. A C T I V I T Y IDENTIFY AND DESCRIBE 1. Cedula - _________________________________________________ 2. Pricipales - ________________________________________________ 3. Buhis - ___________________________________________________ 4. Alcaldes - _________________________________________________ 5. Caidas - ___________________________________________________ 6. Fallas - ___________________________________________________ 7. Palay - ____________________________________________________ 8. Urbana - __________________________________________________ 9. Industria - _________________________________________________ 10. Cavanes - _________________________________________________  A N A L Y S I S 1. How does Taxation under the Spanish different from the Taxation under the American? _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________. 2. Describe in your own words the difference between Taxation during the Commonwealth Period vs, the Fiscal Policy. _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________. 3. Enumerate the benefits the Filipino experienced under the Spanish and American leadership. _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________. A B S T R A C T I O N Later on, the settlements will be handled by encomenderos who received rewards from the Spanish crown for their services. Exempted from payment of tributos were the TAXATION IN SPANISH PHIL. principales: alcaldes, gobernadores, cabezas de barangay, soldiers, members of The Philippines may have abundant natural the civil guard, government officials, and resources even before the encroachment of the Spaniards, but our ancestors were mainly involved vagrants. in a subsistence economy, and while the payment of tribute or taxes (buhis/buwis/handug) The Filipinos who were once satisfied with or the obligation to provide labor services to the agricultural production for subsistence had datus in some early Filipinos communities in the to increase production to meet the Philippines may resemble taxation, it is essentially demands of payments and a more intensive different from the contemporary meaning of the agricultural system had to be introduced. concept. Later on, half of the tribute was paid in cash and the rest with produce. This financed the The arrival of the Spaniards altered this subsistence conquest of the Philippines. system because they imposed the payment of tributos (tributes) from the Filipinos, similar to what had been practiced in all colonies in America. The purpose is to generate resources to finance the maintenance of the islands, such as salaries of government officials and expenses of the clergy. The difficulty faced by the Spaniards in revenue collection through the tribute was the dispersed nature of the settlements, which they solved by introducing the system of reduccion by creating pueblos, where Filipinos were gathered and awarded plots of land to till. Toward the end of the sixteenth century, The colonial government also gained the Manila-Acapulco trade was established income from monopolies, such the sale of through the galleons, a way by which the stamped paper, manufacture and sale of Spaniards could make sure that European liquor, cockpits, and opium, but the biggest presence would be sustained. Once a year, of the state monopolies was tobacco, which the galleon would be loaded up with began in 1781 and halted in 1882. Only merchandise from Asia and sent to New certain areas were assigned to cultivate Spain (Mexico), and back. This improved tobacco, which the government purchased the economy of the Philippines and at a price dictated to the growers, This reinforced the control of the Spaniards all monopoly made it possible for the colony to over the country. Tax collection was still create a surplus of income that made it self- very poor and subsidy from the Spain would sufficient without the need for the situado be needed through the situado real real and even contributed to the Treasury of delivered from the Mexican treasury to the Spain. Philippines through the galleons. This subsidy stopped as Mexico became independent The colonial government also gained in 1820. income from monopolies, such the sale of stamped paper, manufacture and sale of In 1884, the payment of tribute was put to a liquor, cockpits, and opium, but the biggest stop and was replaced by a poll tax of the state monopolies was tobacco, which collected through a certificate of began in 1781 and halted in 1882. Only identification called the cédula personal. certain areas were assigned to cultivate This is required from every resident and must tobacco, which the government purchased at a price dictated to the growers, This be carried while traveling. Unlike the tribute, monopoly made it possible for the colony to the payment cédulas is by person, not by create a surplus of income that made it self- family. Payment of the cédula is progressive sufficient without the need for the situado and according to income categories. This real and even contributed to the Treasury of system, however, was a heavy burden for Spain. the peasants and was easy for the wealthy. But because of this, revenue collection Forced labor was character of Spa colonial greatly increased and became the main taxation Philippines and was required from source of government income. The Chinese the Filipinos. It proved useful in defending in the Philippines were also made to pay the territory of the colony and augmenting their discriminatory cédula which has the labor required by woodcutting and bigger than what the Filipinos paid. shipbuilding especially during the time of the galleon trade. Through the polo system, Two direct taxes were added in 1878 and male Filipinos were obliged to serve, a imposed on urban income Urbana is a tax burden that resulted in an increase in death on the annual rental value of an urban real rate and flight to the mountains, which led estate and industria is a tax on salaries, to a decrease in population in the dividends, and profits. These taxes were seventeenth century. This changed later on, universal and affected all kinds of as polos and servicios became lighter, and economic activity except agriculture which was organized at the municipal level Labor was exempt to encourage growth. provided was used in public works, such as the building of roads and bridges. Some Indirect taxes such as customs duties were were made to serve the municipal office or imposed on exports and imports to further as night guards. raise revenue, especially during the nineteenth century when economic growth increased exponentially. There were no excise tax collected by the Spaniards throughout the years of colonialism. Males were required to provide labor for 40 The problem with land tax was that land titling days a year (reduced to 15 days a year in in the rural area was very disorderly: the 1884). They may opt out by paying the fallas appraising of land value was influenced by of three pesos per annum, which was usually political and familial factors and the lost to corruption because it was collected at introduction of a taxation system on the municipal level and were known as agricultural land faced objections from the caidas or droppings. The polos would be landed elite. Tax evasion was prevalent. called prestación personal (personal services) especially among the elites. by the second half of the nineteenth century. The Internal Revenue Law of 1904 was passed Taxation in the Philippines during the Spanish as a reaction to the problems of collecting colonial period was characterized by the land tax. It prescribed ten major sources of heavy burden placed on the Filipinos, and revenue: (1) licensed taxes on firms dealing in the corruption of the principales, or the alcoholic beverages and tobacco, (2) excise former datus and local elites who were co- taxes on alcoholic beverages and tobacco opted by the Spaniards to subjugate and products, (3) taxes on banks and bankers, (4) control the native on their behalf. The document stamp taxes, (5) the cedula, (6) principales who were given positions such as taxes on insurance and insurance companies, cabezas de barangay or alcalde in the local (7) taxes on forest products, (8) mining government were able to enrich themselves concessions, (9) taxes on business and by pocketing tributos and/or fallas, while the manufacturing, and (10) occupational peasants were left to be abused. Taxation licenses. appeared progressive but the disparity between the less taxes principles and the The cédula went through changes in the new heavily taxed peasants made the rich richer laws the rate ws fixed per adult male, which and the poor poorer. resulted in a grant decline in revenues. In 1907, some provinces were authorized to double the fee for the dula to support the TAXATION IN AMERICAN PHIL. construction and maintenance of roads. The industria tax was levied on the business community and became a highly complex The Americans who acquired the Philippines system that assigned certain tax to an aimed to make the economy self-sufficient by industrial or commercial activity according to running the government with the smallest their profitability. The new act also imposed a possible sum of revenue and create surplus in percentage tax on sales payable quarterly. the budget. From 1898 to 1903, the Americans followed the Spanish system of taxation with some modifications, noting that the system introduced by the Spaniards were outdated and regressive. The military government suspended the contracts for the sale of opium. lottery, and mint charges for coinage of money. Later on, the urbana would be replaced by tax on real estate, which became known as the land tax. The land tax was levied on both urban and rural real estates. 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. To make up for the loss, then Governor General Francis Burton Harrison urged that tax receipts be increased to make up for the loss. Minor changes were made to the 1904 Internal Revenue Act such as the imposition of taxes on mines, petroleum products, and dealers of petroleum products and tobacco.  As World War I reached the Philippine shores, COMMON WEALTH PERIOD economic activity wan put to stop and the New measures the legislation were Philippines bowed to a new set of introduced to make the taxation system administrators, the Japanese. The Japanese appear more equitable during the military administration in the Philippines Commonwealth. Income tax rates were during World War II immediately continued increased in 1936, adding a surtax rate on the system of tax collection introduced individual new incomes in excess of 10,000 during the Commonwealth, but exempted pesos. Income tax rates of corporations the articles belong to the Japanese armed were also increased. In 1937, the cedula tax forces. Foreign trade fell and the main was abolished, which appeared to be a sources of taxation came from amusements, progressive move; but in 1940, a residence manufacture, professions, and business tax was imposed on every citizen aged 18 licence. As the war raged, tax collection years old and on every corporation was a difficult task and additional income of the government were derived from the sales of the National Sweepstake and sale of government bonds. 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 FISCAL POLICY FROM 1946 surtax on income was replaced by a single UP TO PRESENT tax at a progressive rate. 2. Personal exemptions were reduced. 3. Corporation income tax was slightly The impact of the war on the Philippine increased by introducing taxes on inherited economy was effectively disparate, as Manila, estates or gifts donated in the name of dead the capital, was razed to the ground while the rest of the Philippines was relatively untouched. persons But the highly agriculture based economy was 4. The cumulative sales tax was replaced by a disrupted. The United States may have single turnover tax of 10% on luxuries forestry declared the Philippines independent, but an products, and mining were the country needed rehabilitation fundo from 5. Taxes on liquors, cigarettes, increased the United States, the dependency of the 6. Dividends were made taxable. Philippines to the American was an opportunity to be taken advantage of by the former The introduced tax structure was an colonial administrators. The economic situation improvement of the earlier system introduced was no problematic that by 1948. there was a by the Americans, but still remained inequitable. severe lack of funds in many aspects of The lower con still felt the bulk of the burden of governance, such an the military and taxation, while the upper class, the landed elite education sector. Na efforts were made to or the people in political positions, were able to improve tax collection and the United States maneuver the situation that would benefit them advised the adoption of direct taxation. The more. The agriculture sector was still taxed or to administration of President Manuel Roxas promote growth, but there was no incentive for declined the proposal because it did not want industrial investment to take root and develop to alienate its allies in Congress.. The impetus for economic growth came during Under the Marcos authoritarian regime, the the time of President Elpidio Quirino through the tax system remained Defensive. During the implementation of import and exchange latter part of the Marcos years 19811985 the controls that led to import substitution tax system was still heavily dependent on development. This policy allow for the expansion Indirect taxes, which made up 70% of total of a viable manufacturing sector that reduced tax collection. The tax system also remained economic dependence on imports. New tax unresponsive. Taxes grew at an average measures were also passed, which included annual rate of 15% and generated a low tax higher corporate tax rates that increased yield. Tax effort, defined as the ratio government revenues-tax revenue in 1953 between the share of the actual tax increased twofold compared to 1948, the year collection in gross domestic product and when Quirino first assumed presidency. predictable taxable capacity, was at a low 10.7%. While the succeeding presidencies of Magsaysay, Garcia, and Macapagal promised to study the tax structure and policy of the country through the creation of a Tax Commission in 1959 by means of Republic Act No. 2211) to make way for more robust and efficient tax collection scheme fiscal policy remained regressive, characterized by the overburdening of the lowest classes while the landed elite who held business interests were in Congress to ensure that taxes would not be levied to them who belonged to the Dort war higher class of society. The period of the post war republic also saw rise in corruption. From 1969 to 1968, Congress did not pass any tax legislation despite important changes in the economy and the vested interests of Filipino As Corazon Aquino took the helm of the businessmen in Congress would manifest in government after the EDSA Revolution, she many instances such as the rejection of taxes on reformed the tax system through the 1986 imports. Indirect taxation still contributed to Tax Reform Program. The aim was to three quarters of tax revenues and the Omnibus improve the responsiveness of the tax Tax Law of 1969 did not increase the ratio of system promote equity by ensuring that income tax to general tax revenue. Collection similarly situated individuals firm bear of taxes remained poor, tax structure was still the same tax burden, promote growth by problematic and much of public funds were lost withdrawing or modifying taxes that reduce to corruption, which left the government incentives to work or produce, and improve incapable of funding projects geared toward tax administration by simplifying the tax development. system and promoting tax compliance. A major reform in the tax system introduced under the term of Aquino was the introduction of the value-added tax (VAT), with the following features: 1. uniform rate of 10% on sale of domestic and imported goods and services and zero percent on exports and fo