LESSON 4

Social, Political, Economic, and Cultural Issues in Philippine

History

TOPICS
1. Evolution of the Philippine Constitution
2. Policies on Agrarian Reform
3. Evolution of Philippine Taxation

LEARNING OUTCOMES
At the end of the lesson, students should be able to:
1. effectively communicate, using various techniques and genres, their historical analysis of a
particular event or issue that could help other understand the chosen topic; and
2. propose recommendations/solutions to present-day problems based on their
understanding of root causes and their anticipation of future scenarios.

TOPIC 1: EVOLUTION OF THE PHILIPPINE CONSTITUTION

CONSTITUTION

 It is the fundamental law according to which the government of a state is organized and to which
the relations of individuals or moral persons to the community are determined.
 It is a covenant that embodies the rights and duties of people, prescribing ways by which such
rights are freely enjoyed, subject to certain limitations under the law and protected from abuse or
infringement by anyone.
 THE TRANSITION OF PHILIPPINE CONSTITUTION

THE 1897 CONSTITUTION OF

BIAK-NA-BATO

1899 MALOLOS CONSTITUTION

1935 COMMONWEALTH
CONSTITUTION

1873 CONSTITUTIONAL
AUTHORITARIANISM

1987 CONSTITUTION AFTER

MARTIAL LAW

THE 1897 CONSTITUTION OF BIAK-NA-BATO

It was a provisionary Constitution of the Philippine Republic during the Philippine Revolution, and
was promulgated by the Philippine Revolutionary Government on November 1, 1897. This Constitution
was borrowed from Cuba and written by Isabelo Artacho and Felix Ferrer in Spanish. Emilio Aguinaldo
established the Biak-na-Bato Republic on his headquarters in Biak-na-Bato in Bulacan province. It also
outlined certain basic human rights, such as freedom of religion, freedom of the press, and the right to
education. Emilio Aguinaldo and Mariano Triad were elected Supreme Council president and vice
president, respectively. The news immediately spread throughout the country, and the revolutionaries were
once more in high spirits.

The organs of the government under the Constitution

1. The Supreme Council (vested with the power of the Republic)
President: Emilio Aguinaldo
Vice President: Mariano Triad
Sec. of the Interior: Isabelo Artacho Sec.
of Foreign Affairs: Antonio Montenegro
Sec. of the Treasury: Baldomero Aguinaldo
Sec. of War: Emiliano Riego de Dios
 2. Consejo Supremo de Gracia Y Justicia (Supreme Council of Grace and Justice)
They were given the authority to make decisions and affirm or disprove the sentences rendered by other
courts and dictate rules for the administration of justice.
3. Asembleas de Representantes (Assembly of Representatives)
They were to be convened after the revolution to create a new institution and to elect a new Council
of Government and Representatives of the people.

THE 1899 MALOLOS CONSTITUTION

A revolution was launched against Spain and the revolutionaries declared Philippine
independence in Kawit, Cavite on June 12, 1898. What became known as the Malolos Congress was
convened on September 15, 1898 and the first Philippine Constitution, called the Malolos Constitution,
was approved on January 20, 1899, ushering what is called the First Philippine Republic. In the Spanish-
American War of 1898, the revolutionaries sided with the Americans, hoping that, with the defeat of Spain,
independence would be granted by the US to the Philippines. This, however, did not happen. After Spain
sold the islands to the United States in the Treaty of Paris, the US immediately proceeded to brutally
suppress the Philippine independence movement.
This is also known as the “Political Constitution of 1899” and the historical highlights are as
follows:
🠶 It was promulgated by Aguinaldo on January 21, 1899 and was written in Spanish by Felipe Calderon.
🠶 It is consists of 39 articles, divided into 14 titles, with 8 articles of transitory provisions, and a final
additional article and was patterned after the Spanish Constitution.
🠶 The recognition of freedom and equality of all beliefs, as well as the separation of Church and
State was declared.
🠶 It also declares that the form of government shall exercise three distinct powers:

Government

Executive Power - vested

in the president, and elected
by a constituent assembly of
the Assembly of
Representatives and
Legislative Power –
vested to a unicameral body
called the Assembly of
Representatives

Judicial Power
THE 1935 COMMONWEALTH CONSTITUTION
The 1935 Constitution, which featured a political system virtually identical to the American one,
became operative. The system called for a President to be elected at large for a 4-year term (subject to one re-
election), a bicameral Congress, and an independent Judiciary.
During the American colonial period two acts of the US Congress were passed that may be
considered to have potentials of constitutionality:
Organic Act of 1902 Philippine Autonomy Act of 1916
🠶 provided for the creation of a
popularly elected Philippine 🠶 referred to as “Jones Law” which modified
Assembly. the structure of the Philippine government
🠶 specified that legislative power would by removing the Philippine Commission,
replacing it with a Senate (upper house)
be vested in a bicameral legislature
and its members elected by the Filipino
composed of the Philippine
voters, the first truly elected national
Commission as the upper house and
legislature.
the Philippine Assembly as lower 🠶 It also declared the purpose of the
house. U.S. to end their sovereignty over the
🠶 included a bill of rights for Filipinos Philippines and grant Philippine independence
and the appointment of two non- soon as a stable government can be
voting Filipino Resident established.
Commissioners of the Philippines as
representative to the U.S. House of
Representatives.

In 1932, the US Congress passed the Hare-Hawes-Cutting Act with the promise of granting
Filipinos’ independence through the efforts of Sergio Osmena and Manuel Roxas. Unfortunately, the bill was
opposed by then Senate President Manuel L. Quezon and thus, rejected by the Philippine Senate.
Other important facts about 1935 Constitution:
🠶 Tydings-McDuffie Act (Philippine Independence Act) was passed by the US Congress that
provided authority and defined mechanisms for the establishment of a formal constitution
by a constitutional convention
🠶 Right to suffrage were afforded to male citizens of the country given that they must be 21 years
of age and above and are able to read and write; this was later on extended to women within two
years after the approval of the constitution.
🠶 On February 8, 1935, the draft was approved by the constitutional convention and ratified by
then US President Franklin B. Roosevelt on March 25, 1935. Elections followed in
September 1935 and Manuel L. Quezon was elected President of the Commonwealth.
THE 1973 PHILIPPINE CONSTITUTION

UNDER THE MARCOS REGIME

Ferdinand E. Marcos was elected president,

and in 1967, Philippine Congress passed a
resolution calling for a constitutional
convention to change the 1935 Constitution.
Marcos won the re-election in 1969 and the
election of delegates to the constitutional
convention were held on November 20a, 1970,
Martial Law was declared. Marcos cited a and it was formally began on June 1, 1971.
growing communist insurgency as reason for
the Martial Law, which was provided for in
the 1935 Constitution.

With Marcos as dictator, the direction of the

convention turned, manipulating the document to
be able to hold on to power for as long as he
could.

In 1965 Marcos, who was a prominent member of the Liberal Party founded by Roxas, broke with it
after failing to get his party’s nomination for president. He then ran as the Nationalist Party candidate for
president against the Liberal president, Diosdado Macapagal. The campaign was expensive and bitter. Marcos
won and was inaugurated as president on December 30, 1965. In 1969 he was reelected, becoming the first
Philippine president to serve a second term. During his first term he had made progress in agriculture, industry,
and education. Yet his administration was troubled by increasing student demonstrations and violent urban
guerrilla activities.
On September 21, 1972, Marcos imposed martial law on the Philippines. Holding that
communist and subversive forces had precipitated the crisis, he acted swiftly; opposition politicians were
jailed, and the armed forces became an arm of the regime. Opposed by political leaders— notably Benigno
Aquino, Jr., who was jailed and held in detention for almost eight years—Marcos was also criticized by church
leaders and others. In the provinces Maoist communists (New People’s Army) and Muslim separatists
(notably of the Moro National Liberation Front) undertook guerrilla activities intended to bring down the
central government. Under martial law the president assumed extraordinary powers, including the ability to
suspend the writ of habeas corpus. Marcos announced the end of martial law in January 1981, but he
continued to rule in an authoritarian fashion under
various constitutional formats. He won election to the newly created post of president against token opposition in June
1981.

On November 29, 1972, the convention approved its proposed constitution. Here are some of the
proposed amendments of the Constitution:
🠶 The constitution was supposed to introduce a parliamentary-style government, where legislative
power was vested in a unicameral National Assembly, with members being elected to 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. He 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 then a Presidential Decree No. 73 setting the date of the plebiscite to ratify or
reject the proposed constitution on November 30, 1973. But, it was postponed and instead of a plebiscite,
Citizen Assemblies were held from January 10-15, 1973. On January 17, 1973, Marcos issued a
proclamation announcing that the proposed constitution had been ratified by an overwhelming vote of the
members of the highly irregular Citizen Assemblies. Thus, the constitution was still amended several times:
🠶 They allow the continuation of Martial Law.
🠶 The president become the Prime Minister and continue to exercise legislative powers until Martial Law
was lifted and authorized the President to legislate on his own on an emergency basis.
🠶 The retirement age of members of the judiciary was extended to 70 years.
Obviously, given all the amendments, the 1973 Constitution was simply a way of the Marcos to keep
powers, abolish the Senate, and functioned as an authoritarian government with all the powers concentrated to
him.
Marcos’s later years in power were marred by rampant government corruption, economic stagnation,
the steady widening of economic inequalities between the rich and the poor, and the
steady growth of a communist guerrilla insurgency active in the rural areas of the Philippines’
innumerable islands.
THE 1987 PHILIPPINE CONSTITUTION

The 1980’s turbulent state caused the assassination of Benigno Aquino Jr., at Manila
International Airport in August 1983. Thus, it triggered the EDSA People Power Revolution of 1986. The
Marcos family then fled into exile and his opponent in the snap elections, Corazon Aquino was installed as the
new Philippine president on February 25, 1986.

Revert to
the 1935
Constitution

President
Corazon
Aquino had
three
options
Retain the 1973 Start anew and
Constitution and break from the
be granted the “vestiges of a
power to make disgraced
reforms dictatorship"

The President decided to draft a new constitution which will “truly reflective of the aspirations and
ideals of the Filipino people.” Thus, in 1986, a constitutional convention was formed, with 48 members
appointed by President Aquino coming from varied backgrounds and representations. The 1986 ConCom was
composed of 48 individuals who represented all sectors in the country, including, among others, Bishop
Teodoro Bacani, former Supreme Court chief justice Roberto Concepcion, former labor minister (and
eventually senator and foreign affairs secretary) Blas Ople, Ateneo De Manila University president Father
Joaquin Bernas SJ, and University of the Philippines Student Council Chairperson (now Commission on
Human Rights chair) Chito Gascon.
The convention then drew up a permanent constitution, they restore the setup abolished by Marcos in
1972, but added new ways keeping the president in check.
The 1987 Constitution starts with a preamble and eighteen self-contained articles. It recognized the country
as a “democratic republican State” which means “sovereignty resides in the people and all government
authority emanates from them.” It shares governmental powers among the executive, legislative, and judicial
branches of the government. The Constitution also established three independent Constitutional
Commissions: Civil Service Commission, Commission on Elections, and Commission on Audit.
Legislative Department
The Legislative Branch enacts legislation, confirms or rejects Presidential appointments, and has the
authority to declare war. This branch includes Congress (the Senate and House of Representatives) and
several agencies that provide support services to Congress.

🠶 Senate (upper house) – composed of twenty-four Senators who shall be elected at large by the
qualified voters of the Philippines, as may be provided by law.
🠶 House of Representatives (lower house) – shall be composed of not more than two hundred and fifty
members, unless otherwise fixed by law, who shall be elected from legislative districts
apportioned among the provinces, cities, and the Metropolitan Manila area in accordance with the
number of their respective inhabitants, and on the basis of a uniform and progressive ratio, and those
who, as provided by law, shall be elected through a party- list system of registered national, regional,
and sectoral parties or organizations.

The party-list representatives shall constitute twenty per cent of the total number of
representatives including those under the party list. For three consecutive terms after the ratification of this
Constitution, one-half of the seats allocated to party-list representatives shall be filled, as provided by
law, by selection or election from the labor, peasant, urban poor, indigenous cultural communities, women,
youth, and such other sectors as may be provided by law, except the religious sector.

Executive Department

The executive branch carries out and enforces laws. It includes the President, Vice President, the
Cabinet, executive departments, independent agencies, and other boards, commissions, and
committees.
Key roles of the executive branch include:
 🠶 President – The President leads the country. He/she is the head of state, leader of the national
government, and Commander in Chief of all armed forces of the Philippines. The President serves a
six-year term and cannot be re-elected.
🠶 Vice President – The Vice President supports the President. If the President is unable to serve, the
Vice President becomes President. He/she serves a six-year term.
🠶 The Cabinet – Cabinet members serve as advisors to the President. They include the Vice President and
the heads of executive departments. Cabinet members are nominated by the President and must be
confirmed by the Commission of Appointments.
Judicial Department
The judicial branch interprets the meaning of laws, applies laws to individual cases, and decides
if laws violate the Constitution. The judicial power shall be vested in one Supreme Court and in such lower
courts as may be established by law. Judicial power includes the duty of the courts of justice to settle actual
controversies involving rights which are legally demandable and enforceable, and to determine whether or not
there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any
branch or instrumentality of the Government. The judicial branch interprets the meaning of laws, applies
laws to individual cases, and decides if laws violate the Constitution.

Each branch of government can change acts of the other branches as follows:

🠶 The President can veto laws passed by Congress.

🠶Congress confirms or rejects the President's appointments and can remove the President from
office in exceptional circumstances.
🠶 The Justices of the Supreme Court, who can overturn unconstitutional laws, are appointed by the
President and confirmed by the Senate.

TOPIC 2: POLICIES ON AGRARIAN REFORM

Agrarian Reform

Essentially known as the rectification of the whole system of

agriculture and 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.

It is centered on the relationship between production and the

distribution of land among farmers.

It is focused on the political and economic class character of the

relations of production and distribution in farming and related
enterprises
• PRE-COLONIAL PERIOD
“This land is Ours God gave this land to us”
Before the Spaniards came to the Philippines,
Filipinos lived in villages or barangays ruled by
chiefs or datus. The datus comprised the
nobility. Then came the maharlikas (freemen),
followed by the aliping mamamahay (serfs) and
aliping saguiguilid (slaves).
However, despite the existence of different
classes in the social structure, practically
everyone had access to the fruits of the soil.
Money was unknown, and rice served as the
medium of exchange.

• SPANISH PERIOD
“United we stand, divided we fall”
When the Spaniards came to the Philippines,
the concept of encomienda (Royal Land Grants)
was introduced. This system grants that
Encomienderos must defend his encomienda
from external attack, maintain peace and order
within, and support the missionaries. In turn,
the encomiendero acquired the right to collect
tribute from the indios (native).
The system, however, degenerated into abuse
of power by the encomienderos The tribute
soon became land rents to a few powerful
landlords. And the natives who once cultivated
the lands in freedom were transformed into
mere share tenants.

• First Philippine Republic

“The yoke has finally broken”
When the First Philippine Republic was
established in 1899, Gen. Emilio Aguinaldo
declared in the Malolos Constitution his
intention to confiscate large estates,
especially the so-called Friar lands.
However, as the Republic was short-lived,
Aguinaldo’s plan was never implemented.
 • American Period
“Long live America”
Significant legislation enacted during the
American Period:
Philippine Bill of 1902 – Set the ceilings on
the hectarage of private individuals and
corporations may acquire: 16 has. for private
individuals and 1,024 has. for corporations.
Land Registration Act of 1902 (Act No. 496) –
Provided for a comprehensive registration of
land titles under the Torrens system.
Public Land Act of 1903 – introduced the
homestead system in the Philippines.
Tenancy Act of 1933 (Act No. 4054 and 4113)
– regulated relationships between
landowners and tenants of rice (50-50
sharing) and sugar cane lands.
The Torrens system, which the Americans
instituted for the registration of lands, did
not solve the problem completely. Either
they were not aware of the law or if they did,
they could not pay the survey cost and other
fees required in applying for a Torrens title.

• Commonwealth Period
“Government for the Filipinos”
President Manuel L. Quezon espoused the
"Social Justice" program to arrest the
increasing social unrest in Central Luzon.
Significant legislation enacted during
Commonwealth Period:
1935 Constitution – "The promotion of
social justice to ensure the well-being and
economic security of all people should be
the concern of the State"
Commonwealth Act No. 178 (An
Amendment to Rice Tenancy Act No.
4045), Nov. 13, 1936 – Provided for
certain controls in the landlord-tenant
relationships
• National Rice and Corn Corporation
(NARIC), 1936 – Established the price of
rice and corn thereby help the poor
tenants as well as consumers.
Commonwealth Act. No. 461, 1937 –
Specified reasons for the dismissal of
tenants and only with the approval of the
Tenancy Division of the Department of
Justice.
Rural Program Administration, created
March 2, 1939 – Provided the purchase
and lease of haciendas and their sale and
lease to the tenants.
Commonwealth Act No. 441 enacted on
June 3, 1939 – Created the National
Settlement Administration with a capital
stock of P20,000,000.

• Japanese Occupation
“The Era of Hukbalahap”
The Second World War II started in
Europe in 1939 and in the Pacific in 1941.
Hukbalahap controlled whole areas of
Central Luzon; landlords who supported
the Japanese lost their lands to peasants
while those who supported the Huks
earned fixed rentals in favor of the
tenants.
Unfortunately, the end of war also
signaled the end of gains acquired by the
peasants.
Upon the arrival of the Japanese in the
Philippines in 1942, peasants and workers
organizations grew strength. Many
peasants took up arms and identified
themselves with the anti-Japanese group,
the HUKBALAHAP (Hukbo ng Bayan Laban
sa Hapon).
Philippine Republic

“The New Republic”

After the establishment of the Philippine Independence in 1946, the problems of land tenure remained. These
became worst in certain areas. Thus the Congress of the Philippines revised the tenancy law.

• President Manuel A. Roxas (1946-1948)

Republic Act No. 34 -- Established the 70-30 sharing
arrangements and regulating share-tenancy contracts.
Republic Act No. 55 -- Provided for a more effective
safeguard against arbitrary ejectment of tenants.

•Elpidio R. Quirino (1948-1953)

Executive Order No. 355 issued on October 23, 1950 --
Replaced the National Land Settlement Administration with
Land Settlement Development Corporation (LASEDECO)
which takes over the responsibilities of the Agricultural
Machinery Equipment Corporation and the Rice and Corn
Production Administration.

•Ramon Magsaysay (1953-1957) :

Republic Act No. 1160 of 1954 -- Abolished the
LASEDECO and established the National Resettlement and
Rehabilitation Administration (NARRA) to resettle dissidents and
landless farmers. It was particularly aimed at rebel returnees
providing home lots and farmlands in Palawan and Mindanao.
Republic Act No. 1199 (Agricultural Tenancy Act of 1954) --
governed the relationship between landowners and tenant
farmers by organizing share-tenancy and leasehold system. The
law provided the security of tenure of tenants. It also created the
Court of Agrarian Relations.
Republic Act No. 1400 (Land Reform Act of 1955) --
Created the Land Tenure Administration (LTA) which was
responsible for the acquisition and distribution of large
tenanted rice and corn lands over 200 hectares for individuals
and 600 hectares for corporations.
Republic Act No. 821 (Creation of Agricultural Credit
Cooperative Financing Administration) -- Provided small
farmers and share tenants loans with low interest rates of six to
eight percent.
• President Carlos P. Garcia (1957-1961)
Continued the program of President Ramon
Magsaysay. No new legislation passed.

PresidentFerdinand
••President Diosdado E. P.
Marcos (1965-1986)
Macapagal (1961-1965)
Proclamation
Republic Act No. 3844 of August 21,
No. 1081 on September 1972 ushered
8, 1963
the Period of theLand
(Agricultural New Reform
Society. Code)
Five days
-- Abolished
after
share tenancy, institutionalizedLaw,
the proclamation of Martial the entiresetcountry
leasehold, retention
was proclaimed a land reform area and simultaneously the
limit at Reform
Agrarian 75 hectares,
Programinvested rights of preemption and
was decreed.
redemption for tenant farmers, provided for an
President Marcos enacted the following laws: Republic
administrative machinery for implementation,
Act No. 6389, (Code of Agrarian Reform) and RA No.
institutionalized
6390 a judicial
of 1971 -- Created system of agrarian cases,
the Department
incorporated extension, marketing
of Agrarian Reform and the Agrarian Reform and supervised
Special
Account Fund. It strengthen the positionbeneficiaries.
credit system of services of farmer of farmers and
The RA the
expanded wasscope
hailed as one that
of agrarian would emancipate
reform.
Filipino farmers
Presidential Decreefrom
No. 2,the bondage26,
September of 1972
tenancy.
-- Declared the
country under land reform program. It enjoined all agencies
and offices of the government to extend full cooperation and
assistance to the DAR. It also activated the Agrarian Reform
Coordinating Council.
Presidential Decree No. 27, October 21, 1972 -- Restricted
land reform scope to tenanted rice and corn lands and set
the retention limit at 7 hectares.
•President Corazon C. Aquino (1986-1992)
The Constitution ratified by the Filipino people during the
administration of President Corazon C. Aquino provides
under Section 21 under Article II that “The State shall
promote comprehensive rural development and agrarian
reform.”
On June 10, 1988, former President Corazon C. Aquino
signed into law Republic Act No. 6657 or otherwise
known as the Comprehensive Agrarian Reform Law
(CARL). The law became effective on June 15, 1988.
Subsequently, four Presidential issuances were released
in July 1987 after 48 nationwide consultations before
the actual law was enacted.
President Corazon C. Aquino enacted the following
laws:
Executive Order No. 228, July 16, 1987 – Declared full
ownership to qualified farmer-beneficiaries covered by
PD 27. It also determined the value remaining
unvalued rice and corn lands subject of PD 27 and
provided for the manner of payment by the FBs and
mode of compensation to landowners.
Executive Order No. 229, July 22, 1987 – Provided
mechanism for the implementation of the
Comprehensive Agrarian Reform Program (CARP).
Proclamation No. 131, July 22, 1987 – Instituted the CARP
as a major program of the government. It provided for a
special fund known as the Agrarian Reform Fund
(ARF), with an initial amount of Php50 billion to cover
the estimated cost of the program from 1987-1992.
•Executive Order No. 129-A, July 26, 1987 –
streamlined and expanded the power and operations of the
DAR.
•Republic Act No. 6657, June 10, 1988
(Comprehensive Agrarian Reform Law) – An act which
became effective June 15, 1988 and instituted a
comprehensive agrarian reform program to promote
social justice and industrialization providing the
mechanism for its implementation and for other
purposes. This law is still the one being implemented at
present.
•Executive Order No. 405, June 14, 1990 – Vested in the
Land Bank of the Philippines the responsibility to
determine land valuation and compensation for all lands
covered by CARP.
•Executive Order No. 407, June 14, 1990 –
Accelerated the acquisition and distribution of
agricultural lands, pasture lands, fishponds, agro-
forestry lands and other lands of the public domain
suitable for agriculture.
•President Fidel V. Ramos (1992-1998)
When President Fidel V. Ramos formally took over in
1992, his administration came face to face with publics
who have lost confidence in the agrarian reform
program. His administration committed to the vision
“Fairer, faster and more meaningful implementation of
the Agrarian Reform Program.
President Fidel V. Ramos enacted the following laws:
Republic Act No. 7881, 1995 – Amended certain
provisions of RA 6657 and exempted fishponds and
prawns from the coverage of CARP.
Republic Act No. 7905, 1995 – Strengthened the
implementation of the CARP.
Executive Order No. 363, 1997 – Limits the type of
lands that may be converted by setting conditions under
which limits the type of lands that may be converted
by setting conditions under which specific categories of
agricultural land are either absolutely non-negotiable for
conversion or highly restricted for conversion.
Republic Act No. 8435, 1997 (Agriculture and
Fisheries Modernization Act AFMA) – Plugged the
legal loopholes in land use conversion.
Republic Act 8532, 1998 (Agrarian Reform Fund Bill)
– Provided an additional Php50 billion for CARP and
extended its implementation for another 10 years.
• President Gloria Macapacal-Arroyo (2000-
2010)
The agrarian reform program under the Arroyo
administration is anchored on the vision “To
make the countryside economically viable for
the Filipino family by building partnership and
promoting social equity and new economic
opportunities towards lasting peace and
sustainable rural development.”
Land Tenure Improvement - DAR will remain
vigorous in implementing land acquisition and
distribution component of CARP. The DAR will
improve land tenure system through land
distribution and leasehold.
Provision of Support Services - CARP not only
involves the distribution of lands but also
included package of support services which
includes: credit assistance, extension services,
irrigation facilities, roads and bridges,
marketing facilities and training and technical
support programs.
Infrastrucre Projects - DAR will transform the
agrarian reform communities (ARCs), an area
focused and integrated delivery of support
services, into rural economic zones that will
help in the creation of job opportunities in the
countryside.
KALAHI ARZone - The KALAHI Agrarian Reform
(KAR) Zones were also launched. These zones
consists of one or more municipalities with
concentration of ARC population to achieve
greater agro-productivity.
Agrarian Justice - To help clear the backlog of
agrarian cases, DAR will hire more paralegal
officers to support undermanned adjudicatory
boards and introduce quota system to compel
adjudicators to work faster on agrarian reform
cases. DAR will respect the rights of both
farmers and landowners.
•President Benigno Aquino III (2010-
2016)
•President Benigno Aquino III vowed
during his 2012 State of the Nation
Address that he would compplete before
the end of his term the Comprhensive
Agrarian Reform Program (CARP), the
ceterpiece program of the administration
of his mother, President Corazon Aquino.
•The younger Aquino distributed their
family-owned Haciencda Luisita in
Tarlac Apart from the said farm lots, he
also promised to complete the
distribution of privately-owned lands of
productive agricultural estates in the
country that have escaped the coverage
of the program.
•Under his administration, the Agrarian
Reform Community Connectivity and
Economic Support
Services(ARCCESS) project was created
to contribute to the overall goal of rural
poverty reduction especially in agrarian
reform areas.
Agrarian Production Credit Program
(APCP) provided credit support for crop
production to newly organized and
existing agrarian reform beneficiaries’
organizations (ARBOs) and farmers’
organizations not qualified to avail
themselves of loans under the regular
credit windows of banks.
The legal case monitoring system
(LCMS), a web-based legal system for
recording and monitoring various kinds
of agrarian cases at the provincial,
regional and central offices of the DAR to
ensure faster resolution and close
monitoring of agrarian- related cases,
was also launched.
Aside from these initiatives, Aquino also
enacted Executive Order No. 26, Series
of 2011, to mandate the Department of
Agriculture-Department of Environment
and Natural Resources-Department of
Agrarian Reform Convergence Initiative
to develop a National Greening Program in
cooperation with other government
agencies.
 •President Rodrigo Roa Duterte (2016 – present)
The President directed the DAR to launch the 2nd
phase of agrarian reform where landless farmers
would be awarded with undistributed lands under the
Comprehensive Agrarian Reform Program (CARP). Duterte
plans to place almost all public lands, including military
reserves, under agrarian reform.
The President also placed 400 hectares of agricultural lands in
Boracay under CARP.
Under his administration the DAR created an anti-
corruption task force to investigate and handle reports on
alleged anomalous activities by officials and employees of
the department.
The Department also pursues an “Oplan Zero
Backlog” in the resolution of cases in relation to
agrarian justice delivery of the agrarian reform
program to fast-track the implementation of CARP.

TOPIC 3: EVOLUTION OF PHILIPPINE TAXATION

Taxation is a reality that all the citizens must contend with for the primary
reason that the government raise revenue from the people they govern to be able to
function fully. In exchange for the taxes that people, the government promises to
improve the citizens’ lives through good governance. Taxation as a government
mechanism to raise funds, developed and evolved through time, annd in the context
of the Philippines, we must understand that it came with our colonial experience.

TAXATION is defined in many ways. Commonly heard definitions include:

🠶 It is the process by which the sovereign, through its law making body, races revenues use to
defray expenses of givernment.
🠶 It is a means of government in increasing its revenue under the authority of the law,
purposely used to promote welfare and protection of its citizenry.
🠶 It is the collection of the share of individual and organizational income by a government under
the authority of the law.

Purpose and Significance of Tax

Primary Sources: generates funds or revenues use to defray expenses incureed by the government in
promoting the general welfare of its citizenry. Public expenditure.

Other purposes: to equitably contribute to the wealth of the nation.

TAXATION IN SPANISH PHILIPPINES

🠶 When spaniards came, they started to collect “tributos” (tributes).

🠶 The purpose of it is to develop and improve the islands and to
maintain it as well
🠶 also, the collect tributes is for the government officials salary and for
the expenses of the clergy
🠶 The Filipinos have gotten satisfied with the production of agriculture
🠶 Later on, half of the tribute was paid in cash and the rest with
produce.
🠶 Sixteenth century. Manila-Acapulco trade (The Galleon Trade) The
Spanish government continued trade relations with these countries
and Manila became the Center of Commerce
China, Japan, Maluccas, Siam, India, Cambodia, Borneo
🠶 During the Galleon trade, force labor was a character of spanish colonial taxation and was required
from the Filipinos.
Male Filipino were obligated to serve which results to deaths in seventeenth century. Males are
required to provide 40 days per annum.
🠶 1884, The payment of tribute was put to a stop because of the “cedulla”
🠶 Taxation in the Philippine during spanish colonial period was characterized by a heavy burden
place

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 replaced by tax on real state, which
became known as land tax.
🠶 The problem with the tax was that land titling in the rural area was very
disorderly.

TAXATION DURING THE COMMONWEALTH PERIOD

In 1937, the cedula tax was abolished, which prepared to be a progressive
move;
but in 1940, a residence tax was imposed on every citizens aged 18 years old
and on every corporation.
In 1939, the Commonwealth 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 and progressive rate.
2. Personal exemptions were reduced
3. Corporation income tax slightly increased by introducing taxes on
inherited estates or gifts donated in the name of the dead persons.
 4. The culminative sales tax was replaced 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.

The introduced tax structure was an improvement of the earlier system introduced by the
Americans, but still remained unequitable. As World War II reached the Philippine shores, economic
activity put to stop and the Philippines bowed to a new administrators, the Japanese. The
expenditure of the Japanese military government grew greatly, and they issued military notes in
order to cover the costs of war.

FISCAL POLICY FROM 1946 TO PRESENT

🠶 Roxas Regime (1946-1948)

-He rejected the advised of the United States in tax collection.
🠶 Quirino Regime (1948-1953)
-The impetus for economic growth came through the implementation of import and exchange controls
that led to import substitution development.
-tax revenue in 1953 increased twofold compared to 1948.
🠶 Magsaysay, Garcia & Macapagal Regime (1953-1965)
-Promised to study the tax structure and policy of the country (through the creation of a Tax
Commission in 1959 means of Republic Act No. 2211)
-The period of post-war republic also saw a rise in corruption
-Indirect taxation still contributed to three quarters of tax revenues and the Omnibus Tax Law of
1969 did not increase the ratio of income tax to general tax.
🠶 Marcos Regime (1965-1986)
-During the Latter part of Marcos’ years (1981-1985), the tax system was still heavily dependent on
indirect taxes, which made up 70% of total tax collection.
-Taxes grew at an average annual rate of 15% and generated a low tax yield.
🠶 Aquino Regime (1986-1992)
-A major reform in the tax system introduced under the term Aquino was the introduction of the
Value Added Tax (VAT).
-She reformed the tax system through the 1986 Tax Reform Program.
-The VAT law was signed in 1986 and put to effect in 1988
-The tax reform of Aquino administration, both tax and revenue effort rose, increasing from 10.7%
to 15.4% in 1992.
🠶 Ramos Regime (1992-1998)
- The Ramos administration ventured into its own tax reform program in 1997 through the
Comprehensive Tax Reform Program, which was implemented to (1) make the tax system broad-
based, simple, and with reasonable tax rates; (2) minimize tax avoidance allowed by existing flaws
and loopholes in the system: (3) encourage payments by increasing tax exemptions levels,
lowering the highest tax rates, simplifying procedure; and (4) rationalize the grant of tax incentives,
which was estimated to be worth 531.7 billion pesos in 1994
- The VAT base was also broadened in 1997 to include services, through Republic Act 7716.
🠶 Estrada Regime (1998-2000)
 - The succeeding term of President Joseph Estrada in 1998 was too short to constitute in any
change in the tax system.
🠶 Arroyo Regime (2000-2010)
-She undertook increased government spending without adjusting tax collections.
-In 2005, the Expanded Value-Added Tax (E-VAT) was signed into law as Republic Act 9337.
-In February 2006, the VAT tax rate was also increased from 10% to 12%.
🠶 Aquino Regime (2010-2016)
-The Administration ventured into the adjustment of excise tax on liquor and cigarette or the Sin Tax
Reform made law by Republic Act 1035
-It allows the increase the budget of the DOH and PhilHealth (from 55.2 million in 2012 to
515.4 million in 2015).
🠶 Duterte Regime (2016-Present)
-Supported the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
-Vowed to lower income tax rates shouldered by working Filipinos.
-The proposed tax reform also seeks to limit VAT exceptions and increase excise tax on petroleum
products and automobiles.