RPH

FINALS COVERAGE
[ ] The Philippine Constitution
[ ] Agrarian Reform
[ ] Taxation

Lesson 13
THE PHILIPPINE CONSTITUTION
At the end of this lesson, you should be able to:
Explain the importance of a constitution in a nation
2. Trace the development of the Philippine Constitution
throughout the country’s history
3. Discuss the significant features and pr
incorporated in the seven Philippine Constitutions
A constitution is defined as the fundamental law of a nation
or state. It is the constitution that establishes the character and
basic principles of the government. The system that runs the
government is often codified in this written document, which
forms the fundamental rules and principles by which an
organization is managed. It is these same principles that make
clear the rights of the individual and creates limitations to
government power. A constitution is also described as the
highest expression of the law.
T H r PH 1 L I P P IN E U 0 N S T IT U T 1 0 H 18 5
The purposes of a constitution is as follows:
1. It prescribes the kind of government that will exist in
the state.
2. It creates the different departments and specifies their
respective functions and duties.
3. It is the source of the sovereign powers of a
government by establishing the fixed, first or basic
principles.
4. It promotes public welfare. The constitution establishes
the rights of the people which the government is
obligated to protect.
The constitution is written by a constitutional convention
which is a body assembled for the express purpose of framing
or writing a constitution, revising an existing one, or proposing
amendments to it.
After writing the constitution, the draft constitution or
its amendments/revisions are submitted to a plebiscite for
ramification in which the people will decide whether it is
acceptable to become a law of the land. The results are then
considered and followed by the government. This is different
from a referendum in which a law passed by a legislative body
is brought before the people to be voted upon. The results,
however, may or may not be considered by the state.
A History of the Philippine Constitutions
At least seven Philippine Constitutions were framed in our
history.
The Biak-na-Bato Republic Constitution (1897)
The Philippine Revolution reached a stalemate in 1897 when
the revolutionary forces of General Emilio Aguinaldo fled to the
mountains of Biak-na-Bato in San Miguel de Mayumo, Bulacan.
The Spanish forces led by Gen. Miguel Primo de Rivera realized

that even though they could crush the rebels in Bulacan, it did
not mean the revolution would end for it was already widespread
in the other provinces. The Spaniards soon sued for a truce with
the revolutionary forces.
In order to consolidate the forces still fighting in the other
provinces, Aguinaldo met with his leaders to establish a
recognized government. A revolutionary government had already
been formed in March that year with Aguinaldo as President
in Tejeros, San Francisco de Malabon (now General Trias) in
Cavite. It was this government that was now in Biak-na-Bato.
An assembly of Filipino rebel leaders were called and it was
agreed that a republican form of government would be formed.
Two Filipinos, Isabelo Artacho and Felix Ferrer were tasked to
write a constitution. Both decided to adopt the provisions of the
Constitution framed in Jimaguayu, Cuba and from this, the
Constitution of Biak-na-Bato was formulated.
The Constitution was promulgated by the Philippine
Revolutionary Government on November 1, 1897, and became
the provisionary constitution of the government during the
Revolution against Spain.
In spite of being a copied constitution, the Biak-na-Bato
Constitution had its own unique features: its preamble reiterated
the objective of the Revolution which was “the separation of
the Philippines from the Spanish monarchy and their formation
into an independent state with its own government.” The
government that was formed was a Supreme Council composed
of a President, a Vice-President, a Secretary of the Interior,
a Secretary of Foreign Relations, a Secretary of War, and a
Secretary of the Treasury. This Council had sweeping powers of
government which included the power to issue orders and other
laws for the security of the State, to impose and collect taxes,
to raise an army, to ratify treaties, and to convene an Assembly
of Representatives.” The official language was Tagalog. The
judiciary power was vested in another Supreme Council
T H E P H1£pI P I N r Co NO T I T UT I O N
1 87
of justice. Articles XXII to XXV were essentially the Bill of
Rights accorded to every Filipino.
This Constitution was to last only for two years during
Which, at certain periods, it was superseded by laws and decrees
made by Aguinaldo.
The Malolos Republic Constitution (1899)
Following the defeat of Spain by the United States in the
Spanish-American War in 1898, the Filipinos began their task
of creating the independent nation they valiantly fought for in
1896. On June 12, 1898, Philippine independence was declared
and, two weeks later, Aguinaldo ordered the convening of
a Congress in Malolos, Bulacan. Elections were held for the
delegates in the provinces that were already free from Spanish
forces. For the other areas where battles against the Spaniards
were still being fought, Aguinaldo appointed delegates. The
Malolos Congress had its inaugural session at Barasoain Church
in Malolos on September 15, 189 8 amidst a large celebration and
coverage by both the local and foreign press. The delegates then
convened Congress and elected its officers. One of its first acts
was to ratify the Independence declaration in Kawit.
The Congress was originally conceived by presidential
adviser Apolinario Mabini to be an advisory body to the
President. But another group led by delegate Pedro Paterno
decided to create a constitution to form a government that would
be recognized by foreign powers. Mabini was against this for he
believed that peaceful conditions should first prevail before a
constitution should be drafted. He was, however, overruled by
Paterno and his allies.
Discussions for the Constitution began on October 25
after the submission of a draft by Felipe Calderon. Calderon
drew inspiration from the constitutions of Mexico, Belgium,
Guatemala, Costa Rica, Brazil, and France. One of the heated
discussions focused on the issue of the union of Church and State
1 T H r P HI L I P P I N z C0 NS T I TU T10 N 1 8 9

where Catholicism would be the state religion, This proposal was

voted on twice by the Congress. The first was a tie and the
second voting session resulted in the victory for separation by
only one vote. The constitution was approved by the Malolos
Congress on November 29, 1898 and forwarded to President
Aguinaldo for approval.
The original draft of the constitution, however emphasized a
popular government which means supreme power is given to a
legislative body since it is the representative of the people. This
means that the President as well as the judiciary including the
Supreme Court would be selected by the legislative body which,
at that time, was the Malolos Congress. Mabini objected to this
proposal and the approval of the Constitution was delayed. The
amendments were made and the document was finally approved
by Aguinaldo on January 21.
The Malolos Constitution was the first republican
constitution in Asia. Its main features were as follows:
1. It was based on democratic traditions in which the
government formed was “popular, representative and
responsible” with three distinct branches—the executive,
the legislative, and the judicial. FIGURE 47. The Malolos Republic Constitution

2. It called for a presidential form of government with the

president elected for a term of four years by a majority
of the Assembly convened as a constituent assembly;
3. It recognized the freedom of religion and the separation
of the Church and State;
4. It emphasized and safeguarded the basic civil rights
of not only Filipinos but foreigners, through a Bill of
Rights (Articles XIX to XXIII).
The approval of the Constitution and the creation of the
Republic did not end the strife between the Congress and
Mabini. Mabini was eventually replaced as president of the
cabinet several months later.
The first Philippine Republic was inaugurated on January 23,
1899 at the Barasoain Church where Emilio Aguinaldo took his
oath of office as the first President of the Republic. This was
followed by the reading of the Malolos Constitution and the taking
of the oath of loyalty by the Army.
The Malolos Republic was the first democratic government
of the country. It had a form of governance that included the
management of social services, education, the creation of an
Army, a monetary system, and diplomatic activities. It even
had a government publication in order to spread to the foreign
nations the ideals of the new republic and to ask for support for
its recognition.
 The Republic, however, was a short-lived government. Its
demise began at the start of the Philippine-American War in
February 1899 and ceased to exist with the capture of President
Aguinaldo in Palanan, Isabela in March 1901. By that time,
the Americans had firmly established themselves as the new
colonizers of the Philippines with a military government running
the country, In July 1901, they formally established the first
civil government in the islands.

The 1935 Constitution and the Commonwealth Government

For over a decade, the Americans ran the government in the
Philippines with Filipinos given a role in the legislative function
when the Philippine Assembly was established in 1907. It was
only during the administration of Governor-General Francis
Burton Harrison (1913—1921) that the Filipinization policy of
the government was put in place. Filipinos were given a hand
in running the country. Majority of the Philippine Commission
members and civil servants were replaced by Filipinos. Soon, the
colonial administration placed much of the country’s governance
in the hands of Filipinos. One year later, the jones Law of 1916
also known as the Philippine Autonomy Act was passed by the
US Congress.
FIGURE 4B. The 1935 Constitution
The Jones Law reorganized the government with an
American governor-general, a Cabinet, and an all-Filipino
this, the Jones Law provided the presence of two resident
legislature composed of the Senate and the House of Commissioners to the US to sit and observe the proceedings of the
Representatives. It also provided both the executive and US Congress. They were eventually replaced by a Commission on
legislative sectors power over domestic affairs. The new Independence or parliamentary missions to the US to petition for
Philippine Legislature was inaugurated on October 16, 1916 Philippine independence.
with Sergio Osmeña as House Speaker and Manuel Quezon as
Senate President. In addition to this, Harrison also formed the From 1918 to 1932, there were at least five Philippine
Council of State as an advisory body to the governor-general. independence missions to the United States. The efforts paid
off with the creation and approval of the Tydings-McDuffie
Despite the American concession of letting the Filipinos run
Law by the US Congress. This law was approved on March 24,
their own government, the prospect of independence was not
1934 and was known as the Philippine Independence Act. It
erased from the minds and hearts of the Filipinos. To address
provided for the drafting and guidelines of a constitution for a
1 9 2 P H I I I P P I N E G0 Y-B N A NC E A N D R r v EN U F S YS T EM S
10-year “transitional period” government before the granting
of independence. This was known as the Commonwealth
Government.
Following the signing of the Tidings-McDuffie Law, the
Philippines began to ready itself for its transition from a colonial
country into a self-governing nation.
On July 10, 1934, an election was held to vote for the
delegates to write a constitution for the Philippines. Two
hundred two delegates were elected and the convention was
opened on July 30. The draft of the Constitution was finished
by January 31, 1935 and was approved by the convention on
February 8. There was only one dissenter, Tomas Cabili of
Lanao, who felt that the Constitution did not serve the people of
Mindanao.
The Constitution was approved by US President Franklin
Delano Roosevelt on March 23, 1935 and ratified by the Filipino
people in a plebiscite on May 14, 1935.
The 1935 Constitution of the Philippines served as the
fundamental law of the land from 1935 to 1972. It established
the Commonwealth of the Philippines and provides that upon
withdrawal of American sovereignty in the country and the
declaration of Philippine independence, the Commonwealth shall
be known as the Republic of the Philippines.
The 1935 Constitution enumerated the composition, powers,
and duties of the three branches of government {the executive,
legislative, and judicial) and created the General Auditing Office
and laid down the framework in the establishment of the civil
service in the country. The other provisions included a Bill of
Rights, a provision for women’s suffrage giving women the right
to vote and to be a part of Philippine politics for the first time,
the creation of a Philippine Armed Forces for national defense,
and the development of a national language.
The framing of the 1935 Constitution was a momentous
event for the Filipino people. It showed the Americans that
T P H I L I P P I N i C0 N ST I T U T10 N
19 3
Filipinos had the capability for self-government with the creation
of the Commonwealth Government in 193$ that led to the
country’s independence a decade later.
The Japanese Occupation
and the Second Philippine Republic (1943 Constitution)
The Commonwealth Government was interrupted by
the Second World War and the japanese Occupation of the
Philippines. The Commonwealth under President Manuel
Quezon went into exile in the United States. As part of their
policy of attraction in their Greater East Asia Co-Prosperity
Sphere program, the Japanese offered to grant the Philippines its
independence.
Acting on the orders of the Japanese military, the Kapisanan
ng Paglilingkod sa Bagong Pilipinas or KALIBAPI, a Filipino
political party that served as the political party during the
Japanese occupation, convened and elected a Philippine
Commission for Philippine Independence (PCPI) to write a
new constitution. This was finished and signed on September
4, 1943 in a public ceremony and ratified by the KALIBAPI a
few days later. On October 14, 1943, as provided for in the new
constitution, the Second Philippine Republic was inaugurated
with Jose P. Laurel as President.
The 1943 Constitution was basically a condensed version
of the 1935 Constitution consisting one of a preamble and 12
articles. It was transitory in nature as it was only effective during
the duration of the war. It created a Republic with three offices
(executive, legislative, and judicial) but owing to the war, no
legislature was convened. Instead, the powers of government
were concentrated with the President. The Bill of Rights basically
enumerated the citizen’s duties and obligations rather than their
constitutional rights and Tagalog was declared the national
language.
 The 1943 Constitution was recognized as legitimate and overwhelmingly approved. On January 17, 1973, President
binding only in ]apanese-controlled areas of the Philippines but Marcos signed Proclamation to. 1102 declaring the 1973
was ignored by the United States government and the Philippine Constitution ratified.
Commonwealth government in-exile. It was abolished eventually
along with the Second Republic upon the liberation of the The 1973 Constitution provided for a parliamentary form
of government in which the President was the symbolic head of
Philippines by American forces in 1945 and the re-establishment
state and the Prime Minister was the head of government. The
of the Commonwealth in the Philippines.
Prime Minister, who was nominated by the President, acted as
head of the Cabinet.
The 1973 Constitution and the Marcos Dictatorship Legislative power was vested in the Batasang Pambansa.
On June 1, 1971, a Constitutional Convention was convened The constitution also provided for the establishment of the Civil
at the Manila Hotel. Its purpose was to write a new constitution Service Commission, the Commission on Elections, and the
that would meet the new challenges confronting the Philippine Commission on Audit.
Republic that developed since it was formed in 1946. It was
during the second term of President Ferdinand Marcos that the
convention opened.
Almost immediately, the convention became controversial.
The delegates concentrated more on speeches and giving
0
themselves allowances before actually sitting down to discuss
the provisions of the new constitution. Meanwhile, the peace
and order situation brought about by the First Quarter Storm
deteriorated with student rallies and other protests rocking
the metropolis. The biggest scandal came when Leyte delegate
Eduardo Quintero accused Marcos of bribing delegates to vote
for a provision to extend the presidential term of office and to
change the form of government.
But the convention’s activities soon came to a temporary halt
when President Marcos declared martial law on September 21,
1972. He abolished Congress and reorganized the government.
Several days later, the convention was reconvened and a draft
constitution was finally finished and approved on November
30. Instead of being ratified by a plebiscite, however; Marcos
submitted it to “citizen assemblies” that was formed to
approve or reject the new constitution. The plebiscite was FIGURE 49. The 1973 Constitution
held from January 10—15, 1972 and the constitution was
 Hi r IP P IN F N OV ET1 N A N z N D R EV E3 D E SX SP E H S
19 6

The Freedom Constitution (1986)

In 1981, amendments were made to the 1973 Constitution
mbolic head of state On March 24, 198 6, President Aqu ino signed Proclamation
and the President was restored from a sy
to its original status as the head of state and chief executive No. 3 entitled “Declaring a National Policy to Implement the
of the country. The amended Constitution also granted the Reforms Mandated by the People, Protecting their Basic Rights,
President several powers and functions WHICH were originally Adopting a Provisional Constitution, and Providing for an
vested in the Prime minister and the Cabinet. Orderly Transition to a Government under New Constitution.”
The provisional constitution, later called the “Freedom
The 1973 Constitution remained in force until the February
which toppled
22—25 EDSA People Power Revolution of 1986 Constitution,” was proclaimed, setting aside the 1973
with the adoption Constitution thereby recognizing the new Aquino administration
the Marcos administration. It was abolished as a temporary revolutionary government until the framing of
administration of
of the 19 86 Freedom Constitution by the a new constitution. It basically adopted some provisions of the
President Corazon Aquino.
1973 Constitution especially the Bill of Rights.
Under the Freedom Constitution, the President continued to
exercise legislative powers until a legislature was convened under
a new constitution. Furthermore, the President was given the
power to appoint the members of a Constitutional Commission
tasked to draft a new charter “truly reflective of the ideals and
aspirations of the Filipino people.”

The 1987 Constitution

By virtue of Sec. 1, Article 5 of the Freedom Constitution,
President Aquino issued on April 23, 1986 Proclamation No.
9, constituting a Constitutional Commission CONCOM)
charged with drafting a new constitution not later than
September 2, 1986. In line with this issuance, President Aquino,
on May 26, 1986, appointed the 50 CONCOM members
representing the various sectors of society from politics to the
arts and to religion.
On June 2 the ConCom, headed by former Justice Cecilia
Muñoz Palma, commenced its sessions at the Batasang
Pambansa in Quezon City. The ConCom completed their task
on October 12, 1986 and presented the draft constitution to
rlGURE 50. Ihe 1986 COn5tltUtlOD
President Aquino on October 15. After a period of nationwide

information campaign, a plebiscite for its ratification was held on
February 2, 1987. An overwhelming 17,059,495 voted to ratify
the constitution while 5,058,714 voted against it.
On February 11, 1987, the New Constitution was
proclaimed ratified and in effect. On that same day, President
Aquino, government officials, and the military pledged allegiance
to the New Constitution.
The 1987 Constitution consists of 18 articles with a preamble.
Among its significant provisions are as follows:
1. A presidential system of government restores the
bicameral Congress of the Philippines, composed of a
Senate and a House of Representatives.
2. A modified Bill of Rights (Article III) details the rights
of every Filipino citizen. Much emphasis was placed
on the writing of this provision after the violations
committed during the Marcos dictatorship. In addition,
the constitution includes the abolition of death penalty,
except when Congress provides otherwise with regard
to “heinous crimes.”
3. The creation of a Commission on Human Rights
which, under Section 18, Article XIII, is tasked to
investigate all forms of human rights violations
involving civil and political rights. It provides
appropriate legal measures for the protection of human
rights of all persons within the Philippines, and several
other powers in relation to the protection of human
rights.
4. The recognition of an Autonomous Region of Muslim
Mindanao and the Cordilleras.
5. Limited political autonomy for local government units
like the provinces, cities, municipalities and barangays
and instructing the Congress to establish a Local
Government Code.
T H’ P H I £1 P P1 N r CONST I T UTJ ON
!99
The complete provisions are as follows:
Preamble
Article I: National Territory
Article II: Declaration of Principles and State Policies
Article III: Bill of Rights
Article IV: Citizenship
Article V: Suffrage
Article VI: Legislative Department
Article VII: Executive Department
Article VIII: Judicial Department Article
IX: Constitutional Commissions
Article X: Local Government
Article XI: Accountability of Public Officers
Article XII: National Economy and Patrimony
Article XIII: Social Justice and Human Rights
Article XIV: Education, Science and Technology,
Arts,
Culture, and Sports
Article XV: The Family
Article XVI: General Provisions
Article XVII: Amendments or Revisions
Article XVIII: Transitory Provisions
The Philippine government is administered by a presidential
system of government with a bicameral legislature and an
independent judiciary. It has three branches of
government:
1. the Executive headed by the President and Cabinet
2. the Legislative composed of the Senator
headed by the
Senate President and the House of
Representatives
headed by the Speaker of the House
2 0 0 r H I L I P P N r G OV E fl N A N D E AN D B E Y ENu r S YSTE M S

3. the Judiciary composed of the Supreme Court headed

by the Chief Justice, and the lower courts
The House of Representatives is composed of the
Congressmen/women (officially called Representatives) elected
to a three-year term and can be re-elected, but cannot serve
more than three consecutive terms. Sectoral representatives
are members of party-list organizations who can give “voice”
to significant minorities of society that may not be adequately
represented through geographical district.
The Senate is composed of 24 senators who are elected and
serve for six-year terms with half the senators elected every three
years.
The Supreme Court is the Philippines’ highest judicial court,
as well as the court of last resort. The court consists of 14
associate justices and a chief justice.
 by purchasing the so-called “friar lands” from religious
corporations and selling them to the tenants. However, much of
the land ended up with new landlords who were mostly Filipinos.
The agrarian problem worsened during the American period.
Many tenants soon began to resort to armed means to get back”
their land. Some of them claimed that the lands they were willing
Lesson l4 were owned by their ancestors before these lands were claimed
by landlords with “land titles.” The Tayug Uprising in
AGRARIAN FORM Pangasinan in 1931 as well as the Sakdalista Uprising in 1935
prompted the government to address the agrarian problem.
REFORM As part of his program for the Commonwealth Government,
President Quezon espoused “social justice” in an attempt to stop
the agrarian unrest in Central Luzon and alleviate the poverty
of the farmers. This program was in line with the provision of
Article II, Section 5 of the 1935 Constitution which states that “The
At the end o this lesson. 7 u should be able to: promotion of social justice to ensure the well-being and economic
program in the security of all people should be the concern of the State.”
1. Trace the history of the land reform
Philippines
system
2. Discuss the salient features of each agrarian Commonwealth Era
Program
3. Evaluate the comprehensive agrarian Reform Quezon enacted some land reform laws during the
Commonwealth period. The Commonwealth Act No. 178
on November 13, 1936 amending the Rice Tenancy Act No.
4045 of 1933 provided for certain controls in the landlord-
industrial.
The Philippine economy is largely agricultural and tenant relationships with regard to rice lands. He also created
recolonial times
Agriculture has been existing even during the p with
considering that rice is an Asian staple food along other the National Rice and Corn Corporation (NARIC) in 1936 to
however, has brought about control the prices of rice and corn which benefited the farmers
crops. The agricultural economy,
and consumers. The Rural Program Administration, an office
economic and social problems concerning the agrarian structures
as well as land tenancy with the farmers—the ones who are created in 1939, was mandated to facilitate the sale or lease of
system. the haciendas to the tenants.
actually cultivating the fields—as the losers in this
Many of the social justice programs of the Commonwealth
American colonization Period Government, however, were not enforced. Legislation of these
the Philippines, planned programs was thwarted by many of the landowning
During the American colonization of legislators in the Commonwealth National Assembly who would
agrarian problem
the colonial government tried to solve the be affected if they would pass these laws.
2 0 6 P HI L IP P1 N E G OVE P N A R CE A ND R£v E NU E S ys T E M S
Third to Fifth Philippine Republic
Agrarian problems still remained even after Philippine
independence was declared in 1946. What made it worse was
that the agrarian unrest became part of a full-blown revolt
against the government. The movement was spearheaded by
former members of the peasant guerrilla army, Hukbong Bayan
Laban sa Hapon (HUKBALAHAP) who later changed their name
to Hukbong Mapagpalaya ng Bayan (People’s Liberation Army).
The succeeding administrations tried to address these agrarian
problems while, at the same time, attempted to suppress the
insurgency.
During the Roxas Administration (1946-1948), President
Manuel Roxas enacted Republic Act No. 34 which established
70-30 sharing arrangements between landlord and tenants and
regulated share-tenancy contracts. There was also Republic
Act No. 55 which provided security to tenants from arbitrary
ejectment from the land they are cultivating.
On October 30, 1950, President Elpidio Quirino (1948-
1953) issued Executive Order No. 355 which replaced the
National Land Settlement Administration, a government
agency, with the Land Settlement Development Corporation
(LASEDECO). LASEDECO took over the two agrarian offices:
the Agricultural Machinery Equipment Corporation and the Rice
and Corn Production Administration.
It was during the Magsaysay Administration (1953-1957)
that an attempt on land reform was made. In 1954, President
Ramon Magsaysay signed Republic Act No. 1199 or the
Agricultural Tenancy Act of 1954 which governed the tenant-
landowner relationship by organizing the share-tenancy and
leasehold system. It also created the Court of Agrarian Relations.
Two other laws, Republic Act No. 1400 (Land Reform Act of
1955) and Republic Act No. 821 (Creation of Agricultural
Credit Cooperative Financing Administration) were also signed
to help tenant farmers. R.A. 1400 created the Land Tenure
A G R S P I * N g E F O R Iu
of large tenanted rice and corn lands over 200 hectares for
individuals and 600 hectares for corporations . R.A. 821, on the
other hand, created an agricultural bank that
provided small
farmers and share tenants with low-interest loans.
The Macapagal administration (1961—1965) continued
the efforts to advance agrarian reform. On August 8, 1963,
President Diosdado Macapagal signed Republic Act No. 3844
or Agricultural Land Reform Code which heavily favored tenant
farmers, Its provisions included the abolition of share tenancy
and provided for the leasing of agrarian lands to farmers. It
also set a retention limit of 75 hectares for landowners -, invested
rights of preemption and redemption for tenant farmers; put
in place an administrative machinery for implementation;
institutionalized a judicial system for agrarian cases; and
incorporated extension, marketing, and supervised credit system
of services for farmer beneficiaries.
This law was hailed as one that would emancipate Filipino
farmers from the bondage of tenancy. It became the precursor of
the agrarian reform programs of the succeeding administration.
Following the imposition of martial law in 1972, President
Ferdinand Marcos declared the entire country a land reform
area through Presidential Decree No. 2 issued on September 76,
1972. It was almost a year before Marcos signed, Republic Act
No. 6389 or the Code of Agrarian Reform which created the
Department of Agrarian Reform (DAR). The DAR began efforts
to implement land perform in the Philippines with the full support
of the government. This independent body was formed to
replace the existing Land Authority. The Department of Agrarian
Reform was renamed the Ministry of Agrarian Reform in 1978
when the government adopted the parliamentary system.
In October 1972 President Marcos signed Presidential Decree
No. 27 WhiCh provided for tenanted lands devoted to rice and
Corn to pass ownership to the tenants, and lowered the ceiling
for landholding to seven hectares. The law stipulated that share
Administration (LTA) to handle the acquisition and distribution tenants who worked on a landholding of over seven hectares
could purchase the land they tilled while share tenants on
land less than seven hectares would become leaseholders.
Marcos’s agrarian reform program also included credit support,
infrastructure, and legal assistance for farmers.
The 1987 Constitution which was ratified during the
Corazon Aquino Administration (1986—1992) included the
provisions creating an agrarian reform law (Article XIII, Section
4) and promoting rural development and agrarian reform (Article
II, Section 21). In 1988, President Aquino signed Republic Act
No. 6657, popularly known as the Comprehensive Agrarian
Reform Law or CARL. The CARL was enacted to offer a
lawful basis for the implementation of the Comprehensive
Agrarian Reform Program or CARP. It took effect on June
15, 1988. Aquino also enacted other laws such as:
1. Executive Order No. 228 (July 16, 1987) which gave
full ownership to qualified farmer-beneficiaries covered
by PD 27
2. Executive Order No. 229 {july 22, 1987) which
provided a mechanism for the implementation of the
Comprehensive Agrarian Reform Program (CARP)
3. Proclamation No. 131 (July 22, 1987) which instituted
the CARP as a major program of the government and
provided for an Agrarian Reform Fund (ARF), with an
initial amount of Php50 billion to cover the estimated
cost of the program from 1987—1992
4. Executive Order No. 129-A (July 26, 1987) that
streamlined and expanded the power and operations of
the DAR
5. Executive Order No. 407 (June 14, 1990) that ordered
the acceleration of the acquisition and distribution
of agricultural lands, pasture lands, fishponds, agro-
forestry lands and other lands of the public domain
suitable for agriculture
A dilemma during the Ramos Administration (l992 - 1998)
was to revive public trust in the agrarian reform program. The
program was deemed a failure during the Aquino administration
because former President Aquino was a member of the
Cojuangco Family which owned one of the largest haciendas in
Luzon—the Hacienda Luisita. The hacienda which was mainly
devoted to sugarcane production was notably exempted from
agrarian reform which was concentrated mostly on rice and corn
lands.
Thus, President Fidel Ramos made the program one of
the priorities of his administration. He enacted laws that
strengthened the implementation of CARP (Republic Act
No. 7905). He limited the land conversion scheme by making
certain types of agricultural land as non-negotiable for
conversion or highly-restricted to be converted. He also ,signed
Republic Act No. 8532 (Agrarian Reform Fund Bill) which
provided an additional P50 billion for CARP and extended its
implementation for another 10 years.
Though he had a short term of office, President joseph
Estrada (1998—2000) enacted Executive Order No. 151 that
consolidated small farm operations into medium- or large-scale
enterprises to qualify for long-term capital. He also ordered the
DAR to plan joint projects between private investors and the
agrarian sector under his Magkabalikat Para sa Kaunlarang
Agraryo or MAGKASAKA program.
The Department of Agrarian Reform was re-named twice
during the administration of President Gloria Macapagal
Arroyo (2000—2010). It was named the Department of Land
Reform (Executive Order No. 364, September 27, 2004) and
got back to using DAR again (Executive Order No. 456, August
23, 2005). Executive Order No. 364 was enacted to widen the
function of the Department of Land Reform vis-a-vis land reform
programs in the Philippines. Also, the order added jurisdiction
over the Philippine Commission on Urban Poor (PCUP) and the
recognition of the ownership of ancestral lands.
 However, less than a year later, President Arroyo signed
Executive Order No. 456 which instructed the Department
of Land Reform to revert to its original name, Department of
Agrarian Reform. This order considered all the important factors
for agrarian reform to promote beneficial activities for the
agricultural sector. It stated that “the Comprehensive Agrarian
Reform Law goes beyond just land reform but includes the
totality of all factors and support services designed to lift the
economic status of the beneficiaries.”
On August 7, 2009, President Arroyo signed Republic
Act No. 9700 extending the Comprehensive Agrarian Reform
Program for another five years beginning ]uIy 2009. That same
law allots P150 billion for the acquisition and distribution of
1.6 million hectares of land for 1.2 million beneficiaries and the
provision of support services for farmers.
Agrarian reform seems to have not fared well under the
administration of President Benigno Aquino III. A report by a
non-governmental organization (NGO), the Focus on the Global
South, in 2013—halfway through the Pinoy Administration—
showed a dismal performance by the Department of Agrarian
Reform in land redistribution in spite of the promise by the
government to complete it by June 2014. The priorities of the
Department of Agriculture (DA) which were concentrated on
the agribusiness sector made the DAR the sole department that
provided farmers support for rheir agricultural production. The
farmers also competed with foreign agricultural products which
entered the local market through the economic liberalization
program of the government.
1. Briefly discuss the history of the land reform program in
the Philippines.
2. What are the salient features of each agrarian system?
3. How did each system either help our farmers or worsen the
agrarian condition?
4. What is the Comprehensive Agrarian Reform Program?
Research more about its objectives and key features.
What is the general condition of the current agrarian
system in the Philippines?
Plan to stay in a community of peasants (e.g., in Hacienda
Luisita) for about three days to expeñence first-hand their plight.
that do they think about the current agrarian system? How
have their lives changed (or not changed) by the land reforms
that have been implemented throughout the years?
Evaluate the current agrarian reform program. Having
experienced the plight of our farmers, how do you think should
the program be amended? You may also opt to draft a new
equitable policy that would improve the present agrarian system
in general.

Lesson IS
TAXATION
At the end of this lesson, you should be able to:
Explain the nature and purpose of taxation
2. Identify the typed of national and local taxes
3. Argue for or against a current taxation issue
Taxation means laying a tax through which the government
generates income to defray its expenses. It is a way to raise funds
for government programs and services that benefit
Filipino
investments and businesses in the Philippines
have created several definitions of taxation enforced by national
or local laws for income collection and development of the
government.
A tax is enforced as a contribution but it is proportionate
to the citizens ability to pay. lt is levied on persons (who actually
pay with money) and property as well as on business
transactions, privileges, and benefits. The imposition of taxes is
done by law through the Bureau of Internal Revenue.
Types of Taxes
There are two types of taxes: national and local. National
taxes are the ones paid to the government through the Bureau
of Internal Revenue. The national taxation system is based on
the National Internal Revenue Code of 1997 or the Republic Act
No. 8424 otherwise known as the Tax Reform Act of 1997, as
amended.
The types of national taxes are as follows:
1. Capital Gains Tax is a tax imposed on gains that may
have been realized by a seller from the sale, exchange,
or other disposition of capital assets located in the
Philippines, including pacto de retrD sales (a sale
with a condition for repurchase) and other forms of
conditional sale.
2. Documentary Stamp Tax is a tax on documents,
instruments, loan agreements, and papers evidencing
the acceptance, assignment, sale, or transfer of an
obligation, rights, or property incident thereto.
Documentary stamp taxes are evident on documents
like bank promissory notes, deed of sale, and deed of
assignment on transfer of shares of corporate stock
ownership.
3. Donor’s Tax is a tax on a donation or gift. It is also
a tax imposed on the gratuitous transfer of property
between two or more persons who are living at the
time of the transfer. It shall apply whether the transfer
js in trust or otherwise, whether the gift is direct or
indirect, and whether the property is real or personal,
tangible or intangible.
A donor’s tax is based on a graduated schedule of
tax rate.
 P H I L I P P l N E G0 V E R H A NC E A N D R E V E N U £ S Y ST EM S
1

4. Estate Tax is a tax on the right of the deceased 7. Value-Added Tax is a business tax imposed and collected
person to transmit his/her estate to lawful heirs and
from the seller in the course of trade or business on
beneficiaries at the time of death and on certain
every sale of properties (real or personal), lease of goods
transfers which are made by law as equivalent to
or properties (real or personal), or vendors of services. It
testamentary disposition. It is not a tax on property.
is an indirect tax, thus, it can be passed on to the
It is a tax imposed on the privilege of transmitting
property upon the death of the owner. The estate buyer, causing the increase of prices of most goods
tax• is based on the laws in force at the time of and services bought and paid by consumers. VAT
returns are usually filed and paid monthly and quarterly,
death notwithstanding the postponement of the
The latest law on Taxation is RA 9337 signed on
actual possession or enjoyment of the estate by the
May 24, 200s by President Gloria Arroyo is known as
beneficiary.
the “expanded value-added tax or the “E-VAT” law.
Estate tax is also based on a graduated schedule of
8. Excise Tax is a US imposed on goods manufactured
tax rate.
or produced in the Philippines for domestic sale
5. Income Tax is a tax on all annual profits made from Of COflSDlnptiOn Oz any other disposition. It is also
property ownership, profession, trades or offices. It is imposed on things that are imported.
also a tax on a person’s income, emoluments, profits
9. Withholding Tax on Compensation is the tax withheld
and the like. Self-employed individuals and corporate
from individuals receiving purely compensation income
taxpayers pay quarterly income taxes from the first
arising from an employer-employee relationship. This
quarter to the third quarter. And instead of filing
tax is what emp1o yens withheld in their employees’
quarterly income tax on the fourth quarter, they file compensation income and remit to the government
and pay their annual income tax return for the taxable
through the BIR or authorized accrediting agent.
year. Individual income tax is ba sed on graduated
10. Expanded Withholding Tax Is prescribed only for
schedule of tax rate, while corporate income tax in
certain payors like those withheld on rental income
based on a fixed rate prescribed by the tax law or
and professional income. It is creditable against the
special law.
income tax due of the payee for the taxable quarter
Percentage Tax is a business tax imposed on persons or year.
entities who sell or lease goods, properties, or services
Final Withholding Tax is a kind of Withholding tax
in the course of trade or business whose gross annual
which is prescribed only for certain payors and is not
sales or receipts do not exceed the amount required to
creditable against the income tax due of the payee for
register as VAT-registered taxpayers. Percentage taxes
the taxable year. An example of final withholding tax
are usually based on a fixed rate. They are usually paid
is the tax withheld by banks on the interest income
monthly by businesses or professionals. However, some
earned on bank deposits.
special industries and transactions pay percentage tax
on a quarterly basis.

12. Withholding Tax on Government Money Payments
is the withholding tax withheld by government
offices including government-owned or -controlled
corporations and local government units, before
making any payments to private individuals,
corporations, partnerships and/or associations.
Local taxes, on the other hand, is based on the local
government taxation in the Philippines as stated in Republic Act
7160 or the Local Government Code of 1991, as amended.
These taxes, fees, or charges are imposed by the local
government units, such as provinces, cities, municipalities, and
barangays.
Local taxes, on the other hand, include:
1. Tax on Transfer of Real Property Ownership is imposed
on the sale, donation, barter, or on any other mode of
transferring ownership of real property.
2. Tax on Business of 'Printing and Publication is imposed
on printing and publication businesses like that or
books, cards, posters, leaflets, handbills, certificates,
receipts, pamphlets, and others of similar nature.
3. Franchise Tax is a tax on franchised businesses, at the
rate not exceeding fifty percent (50%) of one percent
(1%) of the gross annual receipts of the preceding
calendar year based on the incoming receipt (the
annual earning) within the territorial jurisdiction where
the franchise is selling in.
4. Tax of Sand, Gravel, and Other Quarry Resources is
imposed on ordinary stones, sand, gravel, earth, and
other quarry resources, as defined under the National
Internal Revenue Code, as amended. This refers to the
above materials that are extracted from public lands or
from the beds of seas, lakes, rivers, streams, creeks, and
other public waters within its territorial jurisdiction.
TxñTiON 211
5. Professional tax is an annual tax on each • person
engaged in the exercise or practice of his or her
profession that requires government examination, like
licensure examinations.
6. Amusement Tax is a tax collected from the proprietors,
lessees, or operators of theaters, cinemas, concert halls,
circuses, boxing stadia, and other places of amusement.
7. Annual Fixed Tax for Every Delivery Truck or Van of
Manufacturers or Producers, Wholesale is of, Dealers, or
Retailers in, Certain Products is an annual fixed tax for
every truck, van or any vehicle used by manufacturers,
producers, wholesalers, dealers, or retailers in the
delivery or distribution of distilled spirits, fermented
liquors, soft drinks, cigars and cigarettes, and other
products to sales outlets, or consumers, whether
directly or indirectly, within the province. This type
of tax is usually imposed as determined by the local
provincial councils through which the truck or trucks
pass through or deliver their cargo.
8. Tax on Business is imposed by cities or municipalities
on businesses before they will be issued a business
license or permit to start operations based on the
schedule of rates prescribed by the local government
code, as amended. Businessmen pay this tax if they
apply for a Mayor’s Permit to conduct their business
in the local government unit. Rates of these taxes vary
among cities and municipalities.
9. Fees for Sealing and Licensing of Weights and
Measures are imposed for the sealing and licensing of
weights and measures. This is to impose regulations
with regards to such weights and measures as
prescribed by the city, provincial or municipal council.
 10. Fishery Rentals, Fees, and Charges are imposed by the
municipality/city to grantees of fishery privileges in the
municipal/city waters especially the privilege to build
fish corrals, oysters, mussels, or other aquatic beds or
bangus fry areas and others as specified in the Local
Government Code.
11 Community Tax is the tax levied by cities or
municipalities to every Filipino or alien living in the
Philippines, eighteen (18) years of age or over, who
has been regularly employed on a wage or salary
basis for at least thirty (30) consecutive working
days during any calendar year, or who is engaged in
business or occupation, or who owns real property
with an aggregate assessed value of one thousand
pesos (P1,000.00) or more, or who is required by law
to file an income tax return. Community tax is also
11. imposed on every corporation no matter how created
or organized, whether domestic or resident foreign,
engaged in or doing business in the Philippines.
Taxes levied by the barangays on stores or retailers
with fixed business establishments with gross sales of
receipts of the preceding calendar year amounting
to fifty thousand pesos (P 50,000.00) or less, (for city
12. barangays) and thirty thousand pesos (P30,000.00) or
less, (for municipal barangays), at a rate not exceeding
one percent (1%) on such gross sales or receipts.
Service Fees or Charges are fees or charges collected by
the barangays for services rendered in connection with
the regulation or the use of barangay-owned properties
of service facilities, such as palay, copra, or tobacco
dryers.
13. Barangay Clearance is a fee collected by barangays
upon issuance of barangay clearance, a document
required for many government transactions, such
as when getting a business permit from a city or
municipal government or applying for a job in a
government office or a private company.
1. What is taxation?
2. What is the purpose of taxation?
3. How are national taxes similar to and/or different from
local taxes?
4. What are the types of national taxes?
5. What are the types of local taxes?
Study the amendments on taxation (House Bill 5636, “Tax
Reform for Acceleration and Inclusion” ) being made/pushed by
the Rodrigo Duterte administration. Then, conduct a debate on
whether it is sound to lower the income tax to allegedly address
the common workers’ problem of receiving a low net income.
Write an argumentative essay on this suggested topic:
Which among the types of taxes (national or local) do
you think can be reduced, removed, or revised to the benefit
of both the government and the common individual? Cite
relevant sources such as previous research studies, taxation
reform programs, and the like.
1.a. Only those printed materials are considered as documents in the study of history.
b. Numerical records are sub-category of documents, a data in printed form.Immersive
Reader
(2 Points)

Option 1

Option 2

Option 3

Option 4
2.a. A document prepared by an individual who was not a direct witness to an event but
who obtained his or her description of the event from someone else is considered as
secondary source.
b. Primary data are data considered closer to reality.
(2 Points)

Option 1

Option 2

Option 3

Option 4
3.a. Stories, myths, tales, chants, songs, legends are oral statements.
b. Relics are any object whose physical or visual characteristics can provide some
information.
(2 Points)

Option 1

Option 2

Option 3

Option 4
4.a. Historical sources are written, verbal and material objects produced in the past.
b. Historical data cannot speak for themselves.
(2 Points)

Option 1

Option 2
Option 3

Option 4
5.Which of the following STATEMENT : "brings NO GLORY TO THE CROWN".
(2 Points)

Option 1 : the discovery of the archipelago

Option 2 : the battle of mactan

Option 3 : the death of magellan

Option 4 : the journal of pigafetta

6.a. History is not just the study of the past.
b. It is also a way of studying the causes that led to the emergence of confusing
historical events.
(2 Points)

Option 1

Option 2

Option 3

Option 4
7.Chief of the island of Mactan, who made a promised but not able to deliver his
promises, instead made an excuses by blaming the other chief.
(2 Points)

Option 1 : Lapulapu

Option 2 : Humabon

Option 3 : Lakandula

Option 4 : Zula

Option 5 : none of the above

8.a. External criticism concerns on whether the source material is genuine and
possesses textual reality.
b. Internal criticism concerns with the accuracy and meaning of the data contained in the
document.
(2 Points)
Option 1

Option 2

Option 3

Option 4
9.a. Evidences/ Data in the past are questionable.
b. Systematic collection and evaluation of evidences/ data can never produce in any way
to describe, explain and understand actions that were occurred in the past.
(2 Points)

Option 1

Option 2

Option 3

Option 4
10.Which of the following questions is/ are the “test of truthfulness” ?
a. What is the personal or vested interest of the author?
b. To what race, party, profession and or economic group belong?
(2 Points)

Option 1

Option 2

Option 3

Option 4
11.Which of the following questions aim to criticize the document internally?
a. What was the author attempting to say ?
b. What “inferences” can be extracted from the words?
(2 Points)

Option 1

Option 2

Option 3

Option 4
12.Which of the following question/s talk/s about “genuine & textual reality”.
a. How was the document written ?
b. What were his special qualifications and disqualifications of the matters
treated here?
(2 Points)

Option 1

Option 2

Option 3

Option 4
13.Which of the following does/do not belong in a group?
(2 Points)

Option 1 : proves that the earth is not flat

Option 2 : magellan completed the circumnavigation of the world

Option 3 : proves that one can go to the east by sailing west

Option 4 : none of the above

Option 5 : all of the above

14.Which of the following does/do not belong in a group?
(2 Points)

Option 1 : Elcano

Option 2 : Albo

Option 3 : Bustamante

Option 4 : none of the above

Option 5 : all of the above

15.a. It is a fact that history is subjective.
b. However, it can be done objectively & scientifically through study & interpretation of
sources.
(2 Points)

Option 1
Option 2

Option 3

Option 4
16.Which of the following does/ do not belong in a group?
(2 Points)

Option 1 : albo's log

Option 2 : pigafetta's journal

Option 3 : none of the above

Option 4 : all of the above

17.a. There is no way we can arrive at historical truth.
b. We are presented representations of the past.
(2 Points)

Option 1

Option 2

Option 3

Option 4
18.a. Sources are classified as primary, secondary & tertiary.
b. Each classification is useful in the same manner.
(2 Points)

Option 1

Option 2

Option 3

Option 4
19.a. It is not the duty of historians to conduct rigorous historical research.
b. However, they are duty-bound to properly use and analyze historical sources.
(2 Points)

Option 1

Option 2
Option 3

Option 4
20.a. One of the characteristics of contemporary history is to aim for historical search for
truth.
b. Another, is to conceptualise, contextualize and historicise.
(2 Points)

Option 1

Option 2

Option 3

Option 4