Name Andes, Juvic A. Prof Mr.

Marvin Denice Marasigan

Yr./Sec. BSA1 G2 Ratings

READING IN PHILIPPINE HISTORY

FINALS

UNIT THREE

EVOLUTION OF THE PHILIPPINE CONSTITUTION

1899 CONSTITUTION

Activity 1

Narrate the history of the enactment of the 1899 Constitution.

Aguinaldo issued what is now renowned as the Malolos Constitution on January 21,
1899.

The Malolos constitution is the first significant document created by the elected
representatives of the people in the Philippines. It is founded on democratic traditions that have
their roots in American soil. It established a Filipino state with a government that was popular,
representative, and responsible, with three distinct branches: executive, legislative, and judicial.
The constitution explicitly provided security measures against abuses and listed individual and
national privileges not only of Filipino people but also of aliens.

The constitution as a whole is a testament to the Filipinos’ ability to chart their own
representative democracy course. During a time of storm and stress, it represented the ideals of a
people who had emerged from the Dark Ages into the Light of Reason.

Activity 2

Discuss the salient features of the 1899 Constitution.

It developed a democratic republican government into three branches: the Executive,

Legislative, and Judicial. It advocated for religion and state secession. The president of the
republic was to exercise executive authority with the assistance of his cabinet. The Supreme
Court and other lower courts were given judicial powers by law. The Supreme Court Chief
Justice was to be voted into power by the legislature with the approval of the President and his
Cabinet.

Activity 3

Explain the unique provisions of the 1899 Constitution.

The very first Philippine Republic, which survived from 1899 to 1901, drafted and
adopted the Malolos Constitution, the first Philippine Constitution—the first republican
constitution in Asia—in 1899. The laws of the United States of America governed the
Philippines during the American colonization. This concreted the way for the establishment of
the first Philippine Republic. It established a Filipino state with three distinct branches of
government that were popular, representative, and responsible. The executive, legislative, and
judicial branches are all involved.

1935 CONSTITUTION

Activity 1

Narrate the history of the enactment of the 1935 Constitution.

The 1935 Constitution was approved by the Filipinos in a nationwide plebiscite on May
14, 1935, and went into force at the time with the inaugural ceremony of the Commonwealth of
the Philippines on November 15, 1935. The National Assembly of the Philippines amended the
1935 Constitution in 1940. It served as the legal foundation for the Commonwealth Government,
which served as a transitional government prior to the awarding of Independence of the
Philippines with an American-inspired founding document; the Philippine government would
eventually model its centralized government after the US government.
Activity 2

Discuss the salient features of the 1935 Constitution.

The 1935 Constitution, which showcased a political structure remarkably similar to that
of the United States, went into effect. The system is also called for an at-large presidential
election for a four-year term (with one re-election), a parliamentary system Congress, and a legal
system.

Activity 3

Cite similarities and differences on the powers of the tree branches of the government under the
1935 Constitution with the 1899 Constitution.

A striking parallel is that in the 1899 Constitution, a Filipino has been defined as anyone
born in the Philippines. Citizenship in the Philippines is granted to anyone born in a country. To
be granted citizenship, you must have a Filipino father or mother, according to the 1935
Constitution.

This is why Spanish creoles are Filipino citizens, whereas later migrant workers may only
be granted a fixed residency permit.

However, many Chinoys arrived in the Philippines between the 1920s and the 1950s. I’m
not sure how they got citizen status. The majority of chinoys are descended from pure Chinese.

1973 CONSTITUTION

Activity 1

Narrate the history of the enactment of the 1973 Constitution.

Marcos issued Proclamation No. 1102 on January 17, 1973, declaring and proclaiming
that the 1973 Constitution had been approved by the Filipino citizens and was thus in effect. The
results and ratification of the 1973 Constitution were upheld by the court. In early January 1973,
President Marcos submitted it for ratification. Recognizing that a direct confirmation of the
constitution was doomed, Marcos issued Presidential Decree No. 86, s. 1972, establishing
citizens parts and components to ratify the newly drafted constitution through a Viva Voce vote
rather than postal voting. On January 17, 1973, Marcos declared it ratified and in full force and
effect. Despite the fact that the 1973 Constitution was “ratified” in this manner, opposition to it
persisted. Nonetheless,

Activity 2

Discuss the salient features of the 1973 Constitution.

The constitution of 1973 establishes parliamentary democracy. The Prime Minister and
cabinet members are accountable to Parliament for their actions and policies. They remain in
office as long as a majority of members support them. Following the declaration of martial law
in 1973, the 1935 Constitution was superseded by a new mandate, the 1973 Constitution. Its
preface and 17 articles provide for transition from a presidency to a parliamentary system of
government. The National Assembly is given legislative authority by the Constitution.

Activity 3

Cite similarities and differences on the powers of the tree branches of the government
under the 1973 Constitution with the 1935 Constitution.

As far as I can tell, the resemblances are that they are overlooked by the governments.
Prior to that, if there was corruption in any administration, they did not follow the constitution.
So, in my opinion, the Philippine government is a rogue government.

Activity 4

Discuss some flaws and criticisms to the 1973 Constitution.

The 1973 Constitution addresses these issues by restricting land ownership, controlling
its use, and preventing trade restraint and unfair business practices. There is free public primary
school education, and secondary education will be provided for free in areas where resources are
available. No one knows whether it’s the Constitution of Pakistan or the Philippines (or
anywhere else that might have adopted a new Constitution in 1973) because you didn’t even
bother to clarify which. It’s written down. Written constitutions are useless because people
would then perceive them to mean things that the words were never intended to mean. The truth
that it is titled the 1973 Constitution indicates that it is not the first and is not anticipated to
become the last.

UNIT FOUR

EVOLUTION OF TAXATION IN THE PHILIPPINES

ACTIVITY 1

Narrate the evolution of Taxation in the Philippines.

TAXATION IN SPANISH PHILIPPINES

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 islands, such as salaries of
government officials and expenses of 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

reduction by creating pueblos, where Filipinos were gathered and awarded plot of land to till.

Later on the settlement will be handled by the encomienderos who received rewards from the
Spanish crown for their services

Exemption-principals, alcaldes, gobernadores, cabezade barangay,soldier, member of the civil

guard, government officials.
The Chinese in the Philippines were also made to pay their discriminatory cedulawhich was
bigger than what the Filipinos paid.

Two direct tax were added in 1878.

Urbana-tax on the annual rental value of an urban real estate

Industria-tax on salaries, dividends and profit.

Indirect Tax such as custom duties were imposed on export and imports to further raise revenue
especially during the 19th century when economic growth increased.

The colonial government also gained income from monopolies such as sale of stamped papers,
manufacturer and sale of liquor, cockpits and opium, but he biggest of the state monopolies
TABACCO. Forced Labor-Males are required to provide 40 days a year. They may opt out by
paying the FALLAS of three pesos per annum. The polos would be called prestation personal by
the second half of the 19th century.

Taxation in the Philippines during the Spanish colonial period was characterized by the heavy
burden placed on the Filipinos and the corruption of the principals or the former datus and local
elites who were co-opted by the Spaniards to subjugate and control the natives on their behalf.

TAXATION UNDER THE AMERICANS

In 1989 to 1903, the Americans followed the Spanish system of taxation with some modification,
noting that the system introduced by the Spaniards were outdated and regressive.

The military government suspend the contract for the sale of opium , lottery and mint charges for
coinage of money. Urbana was replaced by tax on real estate, which become known as land tax.

The problem with land tax was that land titling in the rural areas was very disorderly ; the
appraising of land values was influence by political and familial factor and the introduction of
taxation system on agricultural land faced objections from the landed elite.

THE INTERNAL REVENUE LAW OF 1904

It prescribed ten major sources of revenue:1. Licensed taxes on firm dealing in alcoholic
beverages and Tabaco2. Excise taxes on alcoholic beverages and Tabaco products.3. Taxes on
banks and bankers4. Document stamp taxes5. Cedula6. Taxes on insurance and insurance
companies7. Taxes on forest products8. Mining concession9. Taxes on business and
manufacturing10. Occupational licenses

Cedula went through changes in new law as the rate was fixed per adult male which resulted in a
great decline in revenue.

in 1907 some provinces were authorized to double the fee for the cedula to support the
construction and maintenance of roads.

The industrial was levied on the business community and become a highly complex system that
assigned a certain tax to an industrial or commercial activity according to their profitability.

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.

In 1904-internal revenue act such as the imposition of taxes on mines, petroleum products, and
dealer of petroleum products and tobacco.

New source of taxes were introduced later on. In 1914, an income tax was introduced; in 1919,
an inheritance tax was created; and in1932 a national lottery was established to create more
revenue for the government.

TAXATION DURING THE COMMONWEALTHPERIOD

New measures and legislation were introduced to make the taxation system appear more
equitable during the common wealth. Income tax rate were increased in 1936,adding a surtax rate
on individual net income in excess of10,000.

Income tax rates of corporation were also increased

In 1937 the cedula tax was abolished which appeared to be progressive move

In 1940 a residence tax was imposed on every citizens aged 18 years old and every corporation.

IN 1939, A NEW TAX SYSTEM

1. Normal tax of three percent and the surtaon income was replaced by a single tax at progressive
rate.2. Personal exemptions were reduced3. Corporation income tax was slightly increased by
introducing taxes on inherited estates or gift donated in the name of deadpersons4. The
cumulative sales tax was replaced by a single turn overtax of 10% on luxuries5. Taxes on
liquors, cigarettes, forestry products, and mining were increased6. dividend were made taxable

The introduced tax structure was improvement of the earlier system introduced by the
Americans, but still remained inequitable. Finally, a common character of taxation during the
American occupation in the Philippines was not used to diversify the economy or direct
economic development. As world war II reached the Philippines shores, economic activity was
put to stop and the Philippines bowed to a new set of administration. The Japanese during WWII
immediately continued the system of tax collection introduced during the commonwealth, but
exempted the articles belongingness to the Japanese armed forces.

FISCAL POLICYFROM 1946 TOPRESENT

The impact of the war on the Philippine economy was effectively disparate, as Manila, the
capital was razed to the ground while the rest of the Philippines was relatively untouched.

The United State may have declared the Philippines independent but as a country needed
rehabilitation fund from the US. The dependency of the Philippines to the US was an opportunity
to be taken advantage of by the US.

The economic situation was so problematic that by 1949there was a severe lack of funds in many
aspect of the governance such as military and education

No efforts were made to improve the tax collection and the United State advised the adoption of
direct taxation. President Manuel Roxas declined for political reasons.

The impetus of economic growth come during the time of President Elpidio Quirinot hrough
implementation of import and exchange control.

New Tax measure were also passed including higher corporate tax. Tax revenue in 1953
increased two-fold compared to 1948, the year when Quirino first assumed presidency.
Magsaysay, Garcia, and Macapagal, promised Custody the tax structure and policy (Tax
Commissionin1959 by means of R.A. No. 2211)

Characterized by overburdening of the lowest classes while the landed elite who held business
interest were in congress to ensure that taxes would not be levied to them who belong to the
higher class

The period of post war republic also saw a rise incorruption.

From 1959 to 1968 the Congress did not pass an tax legislation despite important changes in the
economy vested in the interests of Filipino businessmen in congress would manifest in many
instances such as rejection of taxes on imports.

Indirect tax still contributed to three quarter of tax revenue and the omnibus tax law of 1969 did
not increase the ration of income tax to general tax revenue.

Collection of taxes remained poor; tax structure was still problematic; and much of public funds
were lost to corruption.

Under Marcos authoritarian regime, the tax system remained regressive. During the latter part of
Marcos years (1981-1985), the tax system was still heavily dependent on indirect tax. Which
made up to 70% of total tax collection.

The tax also remained unresponsive

Taxes grew at an average rate of 15% and generate a low tax yield.

As Corazon Aquino took the helm of the government after the EDSA Revolution, she reformed
the tax system through the 1986 Tax Reform Program

The aim was to improve the responsiveness of the tax system,

promote equity by ensuring the similarly situated individuals and firms bear the same tax burden,
promote growth by withdrawing or modifying taxes that reduces incentives to work to produce
and; improve tax administration by simplifying the tax system and promoting tax compliance
A major reform in tax system introduced under the Aquino was the introduction of the Value-
Added Tax (VAT)1. Uniform rate of 10% sale of on sale of domestic and imported goods and
services and zero percent on export and foreign-currency denominated sales;2. Ten percent lieu
of varied rates applicable to fixed taxes, advance sales tax, tax on original sale, subsequent sale
tax, compensating tax, miller’s tax, contractor tax, broker’s tax, film lessors and distributor’s tax,
excise tax on solvents and matches ad excise tax on processed videotapes.

3. Two percent tax on entities with annual sales or receipt of less than 5,200,0004. Adoption of
tax credit methods of calculating tax by subtracting tax on input from tax or grosssales5.
Exemption of the sale of basic commodities such as agriculture and marine food products in their
original state, price-regulated petroleum products and fertilizers6. Additional 20% tax on non-
essential articles such as jewelry, perfumes, toilet waters, yacht, and other vessel for pleasure and
sports

The VAT law was signed in 1986 and put effect in 1988. While it was a reliable source of
revenue for the government , new tax law would reduce it reliability as legislated exemption
grew.

Along with tax reform came the administrative reforms such as, the restructuring of the
Department of Finance and its attached agency, the Bureau of Internal Revenue ( BIR) through
the

Executive Order 127. Tax collection and tax

audits were intensified; computerization was introduced; and corruption was relatively

reduced which improved the trust of BIR in general

Greater political stability during the administration of Fidel Ramos in 1992 allowed for the
continued economic growth.

The Ramos administration ventured into its own tax reform program in 1997 through the
Comprehensive Tax Reform Program which was implemented to1.Make the tax system broad-
based, simple and with reasonable tax rate2.Minimize tax avoidance allowed by existing
loopholes in the system
3. Encourage payment by increasing tax exemption levels, lowering the highest tax rates and
simplifying procedures4. Rationalize the grant of tax incentives, which as estimated to be worth
53.1 billion pesos in 1994.The VAT base was also broadened in 1997 to include services,
through R.A. 7716. The features of the improved VAT law were also follows

1.Restored the exemptions for all cooperatives (agricultural, electric, creditor multipurpose and
others) provided that the share capital of each members does not exceeds 515,000 pesos2.

Expand the coverage of the term “simplep rocesses” by including broiling and

roasting effectively narrowing the tax base for food products3.Expanded the coverage of the term
original state by including molasses.

4. Exempted from the VAT are the following

Importation of meat

Sale or importation of coal and natural gas in whatever form or state

Educational services rendered by private educational institution duly accredited by the

Commission on Higher Education (CHED)

House and lot and other residential dwelling values at 51million and below, subject to
adjustment using Consumer Price Index

Lease of residential unit for monthly rental per unit of not more than 58,000 subject using CPI

Sale importation, printing or publication of books and any newspaper.

The succeeding term of President Joseph Estrada in1998 was too short to constitute any change
in tax system

Gloria Macapagal Arroyo became the president and she increased the government spending
without adjusting the tax collections. Which resulted to the large deficit.
The government had an additional tax revenue through the Expanded Value-Added Tax (E-
VAT) was signed into law as R.A. 9337.

This EVAT is subjected into energy products such as coal and petroleum products and electricity
generation, transmission and distribution. Selected professional services were also taxed. In
February 2006, the VAT tax rate was also increased from 10%-12%.

President Benigno Aquino III succeeded Arroyo in 2010he promised that no new taxes will be
imposed and additional revenue would have to come from adjusting existing tax.

The Administration ventured into the adjustment of excise tax on liquor and cigarettes (SIN TAX
REFORM).

R.A 10351 was passed and government revenue from alcohol and tobacco excise taxes
increased.

This resulted in the Philippines receiving credit rating upgrade into investment grade status.

The SIN TAX reform was exemplar on how tax reform could impact social services as it allowed
for the increase of Department of Health budget and free health insurance premium for the poor
people enrolled in PHILHEALTH

The administration of President Duterte promised tax reform particularly on the income taxes as
follower income tax rates shoulder by working Filipinos.

The present income tax scheme of the country is the second highest in Southeast Asia and the
current law on income taxes were outdated as they were drafted two decades ago.

The proposed tax reform also seek to limit VAT exemptions and increase excise taxes on
petroleum products and automobiles.

I hoped that reforms in the country’s tax policy will result

in the much the much desired economic development that will be felt even the lowest classes in
society.
ACTIVITY 2

Discuss the significant features of Republic Act 8424, Republic Act 9504, and Republic Act
10963.

Republic Act No. 8424 or the Tax Reform Act of 1997

Prior to Republic Act No. 10963 or the TRAIN Law, the current tax system is basically
outlined by the Tax Reform Act of 1997 or Republic Act No. 8424. The law amended
Presidential Decree No 1158, Presidential Decree No. 1994 and Executive Order No. 273,
otherwise known as the National Internal Revenue Code. The code provides for the organization
and function of Bureau of Internal Revenue (BIR) It sets outs the powers and duties of BIR and
the powers and authorities of its commissioner, regional directors, and revenue officers. The
remaining provisions pertain to the income tax definition of terms, general principles, tax rates
and computation of income tax on individual taxpayers, corporations, estates and trusts. It also
prescribes the accounting periods, methods of accounting, and other income tax requirements
that taxpayers should comply.

Republic Act No. 9504

Republic Act No. 9504 was enacted in June 2008 to amend certain provisions of the
Republic Act No. 8424 or the National Internal Revenue Code of 1997 Specifically, it provides
for the income tax exemption on their taxable income all the minimum wage earners including
their holiday pay, overtime, night shift differential pay and hazard pay. In addition, the law also
increases the personal exemption for all individuals to a fixed amount of P50,000 and the
additional exemption to P25,000 for each dependent not exceeding four (4)

Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion ( TRAIN Law )

On December 19, 2017, President Duterte signed Republic Act No. 10963 or the Tax
Reform for Acceleration and Inclusion (TRAIN) Law. The tax program overhauls the country's
20 year-old tax regime to make the tax system fairer and simpler. This is the first package of the
Comprehensive Tax Reform Program (CTRP) of the government. The law will provide hefty
income tax cuts for the majority of the taxpayers and at the same time raise additional funds to
support the infrastructure project of the government. It also imposes higher taxes on cars fuel,
tobacco, cosmetic surgery, tobacco, and some sweetened beverages. However, personal and
additional exemptions enjoyed under previous tax laws were also taken away by the TRAIN
Law.

ACTIVITY 3

Explain the impact of the Republic Act No. 10963 (Train Law) to the prices of goods and
services and to the lives of the Filipino people.

In January 2018, the first package of the Tax Reform for Acceleration and Inclusion
(TRAIN 1) Law took effect. Among others, it adjusted income brackets and personal income tax
rates, excise tax rates, and value-added tax coverage. The increase in excise taxes in selected
commodities is a complementary measure to the reduction of personal income tax rates.
Specifically covered by excise tax adjustments are fossil fuels and petroleum products,
automobiles, and sugar-sweetened beverages. Like in many countries, excise taxes are imposed
on fossil fuel products due to their negative spillovers to society arising from carbon dioxide
(CO2) emission, which is associated with global warming and climate change. The policy,
however, does not exist in a vacuum and the shortrun inflationary costs of higher fuel prices
seem too high despite potential long-run benefits. This Policy Note discusses the impacts of the
increase in excise tax rates for fossil fuels under TRAIN 1 on productive activities and prices
across the economy.

The effect of TRAIN Law to the lives of the Filipinos is that it increased the incomes or
spending power of Filipino consumers to more than makeup for the moderate rise in inflation
that happens in fast-growing economies, according to the Department of Finance (DOF).