Taxation During The Commonwealth Period

TAXATION DURING

THE
COMMONWEALTH
PERIOD

RONNA MAY L. BOLAMBOT

BS PSYCH 11M1
OBJECTIVES:
o We will know what happened during
Commonwealth Period.
o What are the major changes in the new tax
system.
o Also we will discuss who introduced the tax
structure to remained inequitable the earlier
system.
TAXATION DURING THE
COMMONWEALTH PERIOD
New measures and legislation were

introduced to make the taxation system
appear more equitable during the
Commonwealth. Income tax rates were
increased in 1936, adding a surtax rate on
individual net incomes in excess of 10,000
pesos.
Income tax rates of corporations were also
increased. In 1937 the cedula tax was
abolished, which appeared to be
progressive move; but in 1940 a residence
tax was imposed on every citizen aged 18
years old and on every corporation.
IN 1920 THE COMMONWEALTH GOVERNMENT DRAFTED
THE NATIONAL INTERNAL REVENUE CODE, INTRODUCING
MAJOR CHANGES IN THE NEW TAX SYSTEM, AS FOLLOWS:
1. The normal tax of three percent and the surtax

on income was replaced by a single tax at a
progressive rate.
2. Personal exemptions were reduced.
3. Corporation income tax was slightly increased by
introducing taxes on inherited estates or gifts
donated in the name of dead persons.
4. The cumulative sales tax was replaced by a
single turnover tax of 10% on luxuries.
5. Taxes on liquor, cigarettes, foresty 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 inequitable.
• The lower class still felt the bulk of the burden of
taxation, while the upper class, the lended elite or the
people in political positions, were able to maneuver the
situation that would benefit them more.
• The agriculture sector was still taxed low to promote
growth, but there was no incentive for industrial
investment to take root and develop.
• Finally, a common character of taxation during the American
occupation in the Philippines was not used to diversify the
economy or direct economy development as some sectors still
carried the disproportionate share of the tax burden.
• As World War II reached the Philippine shores, economy activity
was put to a stop and the Philippines bowed to a new set of
administrators, the Japanese. The Japanese military
administration in the Philippines during World War II
immediately continued the system of tax collection introduced
during the Commonwealth, but exempted the articles belonging
to the Japanese armed forces.
• Foreign trade fell and the main sources of taxation came
from amusements, manufactures, professions, and
business licenses, As the war raged, tax collection was a
difficult task and additional incomes of the government
were derived from the sales of the National Sweepstakes
and sale of government bonds.
• The expenditure of the Japanese military government
grew greatly, and they issued military notes in order to
cover the costs of the war.
ADMINISTRATION OF
PRESIDENT ELPIDIO
QUIRINO
ELPIDIO
QUIRINO
Sixth President of the Philippines
ELPIDIO QUIRINO
(November 16, 1890-February 29, 1956)
• Was a Filipino lawyer and politician who

served as the Sixth President of the
Philippines from 1948 to 1953
• First Ilocano President
• Teacher to President
• Industrialization
• After World War II, Quirino was elected vice president in
the 1946 election, consequently the second and last for
the Commonwealth and first for the third republic
• After the death of the incumbent president Manuel
Roxas in 1948, he succeeded the presidency
• He won the president’s office under Liberal Party Ticket,
defeating Nacionalista vice president and former
president Jose P. Laurel as well as fellow Liberista and
former Senate President Jose Avelino
ACHIEVEMENTS
IMPROVEMENT OF
ECONOMY:
• Philippine Rehabilitation Act of 1948
• President Quirino launched and Economic
Mobilization Program to industrialize the country
and give more jobs to the Filipinos.
• Built more irrigation systems and farm-to-market
roads to help the farmers.
• Agricultural Tenancy Act of 1954
• Labor relations also improved with him signing of
the Magna Carta of Labor and the Minimum
Wage Law
• General Economic Gains
• Increased economic aid from the United States
• Total economic mobilization
Supported the establishments of several industrial plants and
projects at strategic points all over the country, thereby
mobilizing its economic resources and ushering in an era of
industrialization.
• Burgos irrigation project in Zambales
• Hydroelectric project in Lanao
• Roads all over Mindanao
• The cement factory in Bacnotan and La Union
• Other new and necessary industries which provided
employment to thousands
AMNESTY FOR THE
HUKS:
• President Quirino took off where President Roxas
left with regards to the HUK problem
• This agency provided protection for HUK victims
and to all those who were caught between
fighting
• The result of this negotiation was granting
Amnesty for the HUKS
HUKBALAHAP
• The Hukbong Bayan Laban sa Hapon (literary: People’s
Army Against the Japanese), better known by its
abbreviation Hukbalahap (Huks), was a
socialist/communist guerilla movement formed by the
farmers of Central Luzon
• They were originally formed to fight the Japanese, but
extended their fight into a rebellion against the
Philippine government , known as the Hukbalahap
Rebellion, in 1946
SOCIAL JUSTICE
PROGRAM:
• President Quirino established the
Presidential Action Committee on Social
Amelioration (PACSA)
• It also provide food, medicine, clothes,
and jobs for the unemployed
POST-PRESIDENCY AND
DEATH
Following his field bid for re-election,
Quirino retired from politics to private
life in 1953. He offered his dedication to
serve the Filipino people, becoming the
“Father of the Foreign Service” in the
Republic of the Philipines.
• Quirino died of heart attack during the leap year day of
February 29, 1956 at his retirement house in Novaliches,
Quezon City
• His remains were initially buried at the Manila South
Cemetery
• On February 29, 2016, his remains were relocated and
reinterred at a special tomb site in the Libingan ng mga
Bayani in Taguig, in time for the 60th anniversary of his
death

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TAXATION DURING

RONNA MAY L. BOLAMBOT

New measures and legislation were

1. The normal tax of three percent and the surtax

• Was a Filipino lawyer and politician who

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