Evolution of Philippine Taxation

Historical Periods Taxation Policies Implemented Implications

 Paying taxes for the protection from
the datu
 Not paying taxes is punishable Taxes are payed in the form of service. Only
 Chieftains family members are the Higher class enjoyed the luxury of life.
exempted in paying taxes
 Timawa class could acquire
properties and other necessities and
Pre-Hispanic
have to pay taxes.
 Oripun do not pay taxes for they
cannot acquire money for their
service
 Priestly class is tasked to keep tract
and record tributes and taxes
rendered.
Spanish  -The Principales, alcaldes, The Implementation of taxation appeared
gobernadores, cabezas de progressive but the disparity between the
barangay, soldiers, mambers of the less taxed principals and the heavily taxed
civil guards, government officials peasants, made the rich richer, and the poor
and vargants were exempted in poorer.
paying tributes.
 Tribute/ buwis
 Cedula Personal is required from
every resident.
 Two direct taxes : Urbana and
industria tax
 Everyone over the age of 18 was
obligued to pay tributes.
 -Chinese paid discriminatory Cedula
which is bigger than the Filipino.
 They are also obliged to pay Urbana
or industrial taxes.
 The Polo system rise, where the
Filipino males was obliged to serve
the spaniards
 Industrial Tax - levied on business
company
 Land tax- levied on both urban and
rural state.
 Commonwealth Act No. 965 -
mandating the imposition of a base
residence tax of fifty centavos and
an additional tax of one peso based
American
on factors such as income and real
estate holdings
 Residence Tax
 Income tax
 Inheritance tax
 Underwood-Simmons Tariff
 The Internal revenue law - passed
as a reaction of collecting land tax.
 Commonwealth Tax system still in
effect
 Japanese armed forces are
exempted in paying taxes
Japanese  Foreign Trade Tax- main source of
tax from amusements,
manufactureres, profession, and
business liscenses
Periods of Philippine republic Quirino, Magsaysay, Garcia, and
Macapagal
 Higher Corporate Tax Rate
The americans aimed to make the economy
self-sufficient by running government with
smallest possible sum revenue. The
Spanish system tax was followed with some
modifications, Including the implementation
of land taxes. However, the appraising of
land value in rural areas was influenced by
political and familial factors. And the
government revenue decrease resulting in
the lack of government budget.
Foreign trade fell and the main sources of
taxation came from
amusements,manufacturs, profession and
business lincences.
There is a difficulty in collecting of taxes and
additional incomes of the government were
deprived from the sales of National
sweepstakes and sales of government
bonds.
Collection of taxes remained poor; tax
structure was still problematic; and much of
  Creation of Tax Commission (1959)
- ensure an efficient tax collection
scheme
 Omnibus tax Law
 Indirect taxation- Contributed Three
quarters of tax revenue
Marcos
 Indirect Taxes - Made up 70% of
total tax collection
 Tax collection in gross domestic
product
Corazon Aquino
 Tax Reform Program (1986)
 VAT law (1986)
 Executive Order 127- Intensified tax
collection and tax audit
Fidel Ramos
 Comprehensive Tax Reform
Joseph Estrada
Gloria Macapagal Arroyo
 Expanded Value-Added Tax (E-VAT) -
subjecting to VAT energy products
 VAT Tax rate increase
Benigno Aquino III
 Sin Tax Reform- Excise tax in liquor
and cigarettes
public funds were lost to corruption resulting
to the incapability of the government to fund
projects towards development.
Tax system was still heavily dependent on
indirect taxes.
Tax system remained unresponsive. Taxes
grew at an average annual rate of 15%
generated a low tax yield.
Tax collection and tax audits were
intensified; computerization was introduced;
corruption was relatively reduced.
Tax and revenue effort rate increases from
10.7% in 1985 to 15.4% in 1992.
The VAT base was broadened.
Expanded the VAT base, subjecting to VAT
energy products such as coal and petroleum
products and electricity generation,
transmission and distribution.
VAT tax rate was increased from 10% to
12%.
Government revenue from alcohol and
tobacco excise taxes increases.

Rodrigo Duterte
 Income Tax
 Tax Reform for acceleration and
Inclusion ( TRAIN) Law
There was an Increase of budget in the
Department of Health and free health
insurance premium for the poor people
enrolled in Philhealth also increases (from
55.2 million in 2012 to 515.4 million in
2015.)
Expected lower income tax rates will be
shouldered by working Filipinos.
It is expected that the country's tax policy
will result in much desired economic
development that will be felt even by the
lowest classes in the society.