TOPIC: Social, Political, Economic, and Cultural Issues in Philippine

History

Learning Objectives:
Discuss the country’s social, political, economic, and cultural issues through the lens
of history.
Analyze how the events and decisions of the past have affected the present.
Present suggestions/ solutions to the current problems that beset the socio-economic-
political and cultural life of the nation.

1 Land Reform in the Philippines: Spanish Colonial Philippines to the

Present
Land reform has gained great significant all over the world as it aims to achieve social
justice and full development of human dignity. Throughout time, the issue of land reform has
been persistent, demanding measures to stop social unrest. Worst scenarios were observed during
the colonial era when the Spanish colonizers introduced new land-holding systems to caciques.
The introduction of Torrens system created serious problems that have far-reaching effects on
the early systems of landholding. The nature inhabitants lost their ancestral domains to the
colonialists.
The poor economic and social conditions of the peasants in the Philippines need
immediate agrarian reform measures by the Philippine government.
1.1 Pre-Spanish Period
Filipinos already lived in villages and barangays even before the Spaniards came to the
Philippines. The settlements were rued by chieftains or datus who comprised the nobility.
There were also the maharlikas (freemen), the aliping namamahay (serfs), and aliping
saguiguilid (slaves). Despite the existence of a social structure, everyone had access to
the fruits of the soil. Rice was a medium of exchange as money was yet unknown.

1.2 Spanish Period (1521-1896)

The Spaniards introduced the concept of encomienda to the Philippines. Encomiendat
was a system of giving lands (Royal Land Grants) to the Spanish conquerors that were
loyal to the Spanish monarch. As a matter of policy, encomenderos must defend his
encomienda from external attack, maintain peace and order within, and support the
missionaries. In turn, the encomenderos were given the right to collect taxes (tribute)
from the indios (natives). Because of this encomenderos, started to abuse their power by
renting their lands to a few powerful landlords, and the natives who once freely cultivated
the land became share tenants.
1.2.1 Agrarian Uprisings (1745-46)
Taxation was not only the reasons for the revolts of the Filipinos during the
Spanish period, but the agrarian unrest as well. The Agrarian Revolt happened
between the 1745 and 1746 in Batangas, Laguna and Cavite, and Bulacan. The
revolt happened in the towns of Lian and Nasugbu in Batangas. The grabbing of
lands by the Catholic religious orders angered the native land owners and
demanded that their lands be returned based on ancestral domain. However, the
Spanish priests refused which resulted to riots and massive looting of convents
and the burning down of churches and ranches. Troops were sent from Manila to
 Batangas to quell the disturbance. The encounter was bloody and those who
surrendered were pardoned.
The uprising resonated in other towns of the neighboring provinces, notably
Binan, Imus, Silang, Kawit, Bacoor, San Mateo, Taguig, Paranaque, and
Hagonoy. The agrarian conflicts reached the ear of King Philip VI who appointed
Oidor (a judge of the Royal Audiencias and Chancillerias) Pedro Calderon
Enriquez to investigate the charges brought against the religious orders to
ascertain the validity of their titles to the lands in question. The friars were
ordered to submit their titles to a secular judge, but refused to comply, claiming
ecclesiastical exemption. In the face of their opposition, the governor general
dispossessed by the friars and which they were continuing to hold without
legitimate title, restoring the lands to the Crown. The case was appealed by the
friars to the Royal Audiencia of Manila and that tribunal upheld the first decision;
then the case was further appealed to the Council of the Indies in Spain and again
the decision was confirmed. But the whole matter did not stop there;
subsequently, the friars won their case and retained the disputed lands, and their
ownership of the lands remained intact even after the end of the Spanish regime.
1.3 The First Philippine Republic Period
When Gen. Emilio Aguinaldo came to power in 1899, the Malolos Constitution which
they crafted intended to confiscate the so-called Friar lands and other large estates.
However, the First Philippine Republic was short-lived so that the plan to confiscate the
lands was never executed.

1.4 Spanish Period (1898-1935)

There were some noteworthy regulations enacted during the American period.
a. Philippine Bill of 1902 – set the ceilings on the hectarage of private
individuals to 16 hectares, and 1,024 hectares for corporations.
b. Land Registration Act of 1902 (Act No. 496) – provided for a comprehensive
registration of land titles under the Torrens system
c. Public Land Act of 1903 – introduced the homestead system in the Philippines
d. Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated relationships
between landowners and tenants of rice (50-50 sharing) and sugar cane lands

However, the Land Registration Act of 1902 did not completely solve the problem of
land registration under the Torrens system because the lands owners might not have been
aware of the law or that they could not pay the survey cost and other fees required in
applying for a Torrens title.
1.5 Commonwealth Period (1935-1942)
During this period, President Manuel L. Quezon advocated the Social Justice program to
block the increasing social unrest in Central Luzon. Significant legislations enacted
during Commonwealth period were the following:
The 1935 Constitution, which was promulgated for the promotion of social justice to
ensure the well-being and economic security of all people, should be the concern of the
State.
The Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act No. 4045),
enacted on Nov. 13, 1936, provided for certain controls in the landlord-tenant
relationships.
The National Rice and Corn Corporation (NARIC) of 1936 established the price of
rice and corn that helped the poor tenants as well as consumers.
The Commonwealth Act No. 461 of 1937, specified the reasons for dismissal of tenants
and only with the approval of the Tenancy Division of the Department of Justice.
The Rural Program Administration, created on March 2, 1939 provided the purchase
and lease of haciendas and their sale and lease to the tenants.
The Commonwealth Act No. 441, enacted on June 3, 1939, created the National
Settlement Administration with a capital stock of P 20, 000, 000.
1.6 Japanese Occupation
During the Second World War (that started in Europe in 1939 and in the Pacific in 1941),
the Hukbo ng Bayan Laban sa Hapon (HUKBALAHAP) controlled the areas of Central
Luzon. The HUKBALAHAP was composed of peasants and workers who took up arms
against the Japanese forces. Peasants who supported them earned fixed rentals, while
landowners who supported the Japanese lost their lands to peasants. But this was short-
lived because it ended with the ended of WWII.
The problems of land tenure in the Philippines remained even after the Philippine
Independence in 1946. To address the problem, the Philippine Congress revised the
tenancy law.
1.7 Third Republic Period
a. Manuel Roxas’ Administration (1946-1948)
During Roxas’ administration, the following laws were enacted:
i. Republic Act No. 34 – established the 70-30 sharing arrangements and
regulated the share-tenancy contracts
ii. Republic Act No. 55 – provided for a more effective safeguard against
arbitrary ejectment of tenants
b. Elpidio Quirino’s Administration (1948-1953)
i. Executive Order No. 355 (Oct. 23, 1950) – replaced the National Land
Settlement Administration with Land Settlement Development
Corporation (LASEDECO) that took over the responsibilities of the
Agricultural Machinery Equipment Corporation and the Rice and Corn
Production Administration
c. Ramon Magsaysay’s Administration (1953-1957)
i. 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.
ii. Republic Act No. 1199 (Agricultural Tenancy Act of 1974) –
governed the relationship between landowners and tenant farmers by
organizing share-tenancy and leasehold system. It created the Court of
Agrarian Relations.
iii. Republic Act No. 1400 (Land Reform Act of 1955) – created the Land
Tenure Administration (LTA) that was responsible for the acquisition
and distribution of large tenanted and corn lands over 200 hectares for
individuals and 600 hectares for corporation
iv. Republic Act No. 821 (Creation of Agricultural Credit Cooperative
Financing Administration) – provided loans to small farmers and share
tenants with interest rates of as low six to eight percent
d. Carlos Garcia’s Administration (1957-1961)
Succeeded the presidency after the death of President Ramon Magsaysay
continued the program
e. Diosdado Macapagal’s Administration (1961-1965)
i. Republic Act No. 3844 of 1963 (Agricultural Land Reform Code) –
abolished share tenancy, institutionalized leasehold, set retention limit
at 75 hectares, invested rights of preemption and redemption for tenant
farmers, provided for an administrative machinery for implementation,
institutionalized a judicial system of agrarian cases, incorporated
extension, marketing and supervised credit system of services of
farmer beneficiaries
f. Ferdinand Marcos’ Administration (1965-1986)
The Philippines “New Society” (Kilusang Bagong Lipunan) was ushered in by the
proclamation of Martial Law (Proclamation No. 1081) on September 21, 1972.
During this time, the Agrarian Reform program was put into law and land reform
program was implemented.
i. Republic Act No. 6389 (Code of Agrarian Reform) – created the
Department of Agrarian Reform
ii. Republic Act No. 6390 of 1971 – the Agrarian Reform Special
Account Fund and expanded the scope of agrarian reform
iii. Presidential Decree No. 2 of 1972 – declared the country under land
reform program and activated the Agrarian Reform Coordinating
Council. All government agencies were ordered to fully cooperate and
assist the Department of Agrarian Reform (DAR).
iv. Presidential Decree No. 27 (October 21, 1972) – restricted the land
reform to tenanted rice and corn lands and set the retention limit at 7
hectares
g. Corazon Aquino’s Administration (1986-1992)
Article II, Sec. 21 of the 1987 Philippine Constitution provides that “The State
shall promote comprehensive rural development and agrarian reform.”
i.Executive Order No. 228 (July 16, 1987) – declared full land
ownership to qualified farmer-beneficiaries covered by PD 27
ii. Executive Order No. 229 (July 22, 1987) – provided the mechanism
for the implementation of the Comprehensive Agrarian Reform
Program (CARP)
iii. 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
PHP 50 billion to cover the estimated cost of the program from 1987-
1992.
iv. Executive Order No. 129-A (July 26, 1987) – streamlined and
expanded the power and operations of the DAR
v. Republic Act No. 6657 – also known as the Comprehensive Agrarian
Reform Law (CARL) which was signed into law on June 10, 1988.
This law instituted a comprehensive agrarian reform program to
promote social justice and industrialization. This law is still at work
until the present.
vi. Executive Order No. 405 (June 14, 1990) – conferred in the Land
Bank of the Philippines (LBP) the responsibility to determine land
valuation and compensation for all lands covered by CARP
vii. Executive Order No. 407 (June 14, 1990) – accelerated the acquisition
and distribution of agricultural lands, pasture lands, agro-forestry lands
and other lands of the public domain suitable for agriculture
h. Fidel Ramos’ Administration (1992-1998)
 i. Republic Act No. 7881 of 1995 – amended certain provisions of RA
6657 and exempted fishponds and prawns from CARP coverage
ii. Republic Act No. 1705 of 1995 – strengthened CARP implementation
iii. Executive Order No. 363 of 1997 – prescribed the guidelines for the
protection of areas non-negotiable for conversion and monitoring
compliance with Section 20 of the Local Government Code
iv. Republic Act No. 8435 of 1997 (Agriculture and Fisheries
Modernization Act [AFMA]) – prescribing urgent related measures to
modernize the agriculture and fisheries sectors of the country in order
to enhance their profitability and prepare said sectors for the
challenges of globalization through an adequate, focused and rational
delivery of necessary support services, appropriating funds therefor
and for other purposes
v. Republic Act 8532 of 1998 – strengthening further the Comprehensive
Agrarian Reform Program (CARP), by providing augmentation fund
therefor, amending for the purposed Section 63 of Republic Act No.
6657, otherwise known as “The CARP Law of 1988”. This law
provided an additional PHP 50 billion for CARP and extended its
implementation for another 10 years.
i. Joseph Estrada’s Administration (1998-2000)
i. Executive Order No. 151 (September 1999) – known as Farmer’s Trust
Fund which established the farmers trust development program and
provided institutional reforms and fund mechanisms for mobilizing long
term private sector capital for rural development.
ii. Magkabalikat para sa Kaunlarang Agraryo or MAGKASAKA – DAR
forged into joint ventures with private investors into agrarian sector.
iii. Agrikulturang Maka Masa – achieved an output growth of 6 percent,
which lowered the inflation rate form 11 percent in January 1999 to just a
little over 3 percent by November of the same year. This was a record high
at the time.
j. Gloria Macapagal-Arroyo (2001-2010)
President Arroyo envisioned 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.
i. Executive Order No. 379 s. 2004 – amending Executive Order No. 364
entitled Transforming the Department of Agrarian Reform into the
Department of Land Reform, which broadened the scope of the
Department by making it responsible for all land reform in the country. It
also placed the Philippine Commission on Urban Poor (PCUP) under its
supervision and control. DLR was also responsible for the recognition of
the ownership of ancestral domain by indigenous peoples, under the
National Commission on Indigenous Peoples (NCIP).
ii. Memorandum Circular No. 4 s. 2003 – operationalized the development of
Kapit-Bisig Laban sa Kahirapan Agrarian Reform Zones (KALAHI
ARZones)
iii. Republic Act No. 9700 s. 2009 – strengthening the Comprehensive
Agrarian Reform Program (CARP), extending the acquisition and
distribution of all agricultural lands, instituting necessary reforms,
amending for the purpose certain provisions of Republic Act No. 6657,
otherwise known as the Comprehensive Agrarian Reform Law of 1988, as
amended, and appropriating funds therefor.
k. Benigno Simeon Cojuangco Aquino’s Administration (2010-2016)
 i. Developed a plan of action for the implementation of the Comprehensive
Agrarian Reform Program Extension with Reforms (CARPER), together
with farmers, Catholic bishops, and other land reform advocates.
ii. Established the multi-stakeholders mechanism, composed of
representatives from the Department of Agrarian Reform and other CARP
implementing agencies of the government, Church officials, non-
governmental organizations, peoples’ organizations, and other farmers’
groups and federations to monitor the implementation of the CARP,
specifically focusing on: (a) coverage and distribution of agricultural
lands; (b) movement and performance of Department of Agrarian Reform
personnel; (c) delivery of support services to the beneficiaries; and (d)
budget allocation and utilization
l. Rodrigo Roa Duterte’s Administration (2016-present)
i. Committed to pursuing the agrarian reform program in the country
ii. The president is also the chairman of the Presidential Agrarian Reform
Council (PARC), has included land tenure security in his 10-point socio-
economic agenda to improve the quality of life of farmers and raise their
productivity.

2 The Philippine Constitutions

A constitution is a set of fundamental principles or established precedents according to
which a state or other organization is governed. It symbolizes the country’s freedom and
independence. The Philippine Constitution has evolved since 1897: the 1897 Constitution of
Biak-na-Bato, the 1899 Malolos Constitution, Acts of the United States Congress (Philippine
Organic Act of 1902, Philippine Autonomy Act of 1916, and the Tydings-McDuffie Act of
1934), the 1935 Constitution, the 1943 Constitution, the 1973 Constitution, the 1986 Freedom
Constitution, and the 1987 Constitution.
There are three classifications of Constitution:
a. As to origin and history
b. As to form
c. As to manner of amending it
As to form. Constitution may be written or unwritten. It is written when it is given definite
written form at a particular time, usually by a duly constituted authority (constitutional
convention), and unwritten, when it is entirely the product of political evolution, consisting
largely of a mass of customs, usages, and judicial decisions together with a smaller body of
statutory enactments of a fundamental character, usually bearing different dates. It is important
to note, that no constitution is entirely written or unwritten.
As to manner of amending a Constitution. It may either rigid or inelastic, i.e. regarded as a
document of special sanctity which cannot be amended or altered except by some special
machinery more cumbrous than the ordinary legislative process; and flexible or elastic, when it
possesses no higher legal authority than ordinary laws and may be altered in the same way as
other laws.
A good written Constitution must be brief, broad, and definite. A Constitution that is too detailed
loses its advantage as a fundamental law; may never be understood by the public, and it may
necessitate amending it every once-in-a-while to cover many future contingencies.
2.1. The 1897 Constitution of Biak-na-Bato
 The Tejeros Convention held at San Francisco de Malabon in Cavite on March 22, 1897
was the result of the Katipunan revolution. In this convention, the first president and vice
president (of the Philippines) were elected by the members of the Katipunan. The elected
president was Emilio Aguinaldo, and the vice president was Mariano Trias.
It was on November 1, 1897 that the Republic of Biak-na-Bato (Republica de Biac-na-
BAto) was established during a meeting held at Biak-na-Bato in the town of San Miguel de
Mayumo in Bulacan. This was a de facto constitutional republic. In this meeting, the
constitution written by Isabelo Artacho and Felix Ferrer was promulgated by the Katipunan,
which acted as Constitutional Assembly. The Constitution of Biak-na-Bato known as the
“Constitucion Provisional de la Republica de Filipinas” was short-lived as it operated only
from November 1, 1897 to December 14, 1897.
The Preamble of the 1897 Constitution of Biak-na-Bato reads, “The separation of the
Philippines from the Spanish monarchy and their formation into an independent state with its
own government called the Philippine Republic has been the end sought by the Revolution in
the existing war, begun on the 24 th of August, 1896; and therefore, in its name and by the
power delegated by the Filipino people, interpreting faithfully their desires and ambitions,
we, the representatives of the Revolution, in a meeting at Biac-na-bato, Nov. 1 st 1897,
unanimously adopt the following articles for the Constitution of the State.”

2.2. The 1899 Malolos Constitution or the Political Constitution of 1899

The 1899 Malolos Constitution or the Political Constitution of 1899 (Constitucion

Politica de 1899) was the basic law of the First Philippine Republic whose form of
government was unitary semi-presidential constitutional. The Malolos Constitution was the
first republican constitution in Asia written by Felipe Calderon y Roca and Felipe
Buencamino after the declaration of Philippine independence from Spain on June 12, 1898. It
was signed into law by the Malolos Congress and promulgated on January 21, 1899. The
Malolos Constitution was in operation from January 23, 1899 to March 23, 1901. The salient
features of the 1899 Malolos Constitution include the declaration of sovereignty of the
people, the enumeration of the basic civil rights, the separation of the Church and State, it
provided for the creation of an Assembly of Representatives to act as the legislative body,
and a parliamentary republic as the form of government.
The Preamble of the 1899 Malolos Constitution reads, “We, the Representatives of the
Filipino people, lawfully convened, in order to establish justice, provide for common
defense, promote the general welfare, and insure the benefits of liberty, imploring the aid of
the Sovereign Legislator of the Universe for the attainment of these ends, have voted,
decreed, and sanctioned the following.”

2.3. The Acts of the United States Congress

The Acts of the United States Congress was in operation from December 10, 1898 to
March 24, 1934, since the Philippines was a territory of the United States during these
periods because of the Treaty of Paris which transferred the sovereignty from Spain to the
United States. These acts passed by the United States Congress were considered as the
Philippine constitutions because they provided for the fundamental political principles and
established the structure, procedures, powers, and duties of the Philippine government.

a. Philippine Organic Act of 1902 (Philippine Bill of 1902)

The first organic law enacted by the US Congress for the Philippines. It
provided for the creation of the Philippine Assembly, and a bicameral
legislature composed of a Philippine Commission (upper house) and the
Philippine Assembly (lower house) were the law-making power was vested.
Like other constitutions, it also enumerated the bill of rights for the Filipinos
and provided for the appointment of two non-voting Filipino resident
 commissioners of the Philippines that would represent the Philippines in the
US House of Representatives.
b. Philippine Autonomy Act of 1916 (Jones Law)
Amended the structure of the Philippine government that was provided for in
the Philippine Bill of 1902. It removed the Philippine Commission (upper
house) and replaced it with the Senate whose members were elected by the
Filipino votes. Because of this, the Philippines’ first fully elected national
legislature came into being. A notable statement of this act was the explicit
expression of the United States to grant the Philippines its independence as
soon as a stable Philippine government would be established.
c. Tydings-McDuffie Act of 1934
On March 24, 1934 the United States passed the Tydings-McDuffie Act that
allowed the Filipino nation to have a self-government. A ten-year transition
period was granted by this Act so that Filipinos could be prepared for self-
government and full independence. Unlike the other two acts which could be
considered constitution, the Tydings-McDuffie Act of 1934 could not be
considered as a constitution, but still a very important document which
provided authority and defined mechanisms for the establishment of a formal
constitution via a constitutional convention. The eventful day arrived on July
4, 1946, when the United States recognized Philippine independence in the
Treaty of Manila. The Philippine-American friendship day is celebrated every
4th of July to commemorate the Philippine independence from the United
States of America.

2.4. The 1935 Philippine Constitution

This constitution was written in 1934 with the goal of meeting the United States’
expectation of political maturity among Philippine leaders so that a full and real independence
could be granted by the US. This constitution was promulgated by the 1934 Constitutional
Convention and was in operation during the Commonwealth era (1935-1946), until the Third
Republic (July 4, 1946 – January 16, 1973). The Third Republic started with the granting of
Philippine Independence from the US domination on July 4, 1946 to Roxas Administration
(1946-1948), Quirino Administraton (1948-1953), Magsaysay Administration (1953-1957),
Garcia Administration (1957-1961), and Macapagal Administration (1961-1965).
During the Commonwealth period, the form of government was Presidential system, with
the president serving a six-year term without re-election. It also provided for a unicameral
National Assembly. However, in 1940 an amendment was done establishing a Bicameral
Congress of the Philippines composed of a Senate and House of Representatives, as well as the
creation of an independent electoral commission. Moreover, President’s term was changed from
six years without re-election to a four-year term with a maximum of two consecutive terms in
office.
In the Third Republic, the 1935 Constitution was still in operation, the form of
government of the Philippines was Unitary Presidential Constitutional Republic. Again, an
amendment was made in 1947, which provided for the provision of the Parity Rights between the
American and the Filipino citizens. The Parity Rights granted the US citizens and corporations
equal rights with Filipino citizens over the Philippine natural resources.
In 1971, a Constitutional Convention was held to rewrite to revise the 1935 Constitution.
However, so much corruption marred the process. In 1972, President Ferdinand Marcos
proclaimed martial law to suppress the increasing civil strife and the threat of communist
takeover of the government. The proclamation of martial law suspended the 1935 Constitution.
 The Preamble of the 1935 Constitution reads, “The Filipino people, imploring the aid of
Divine Providence, in order to establish a government that shall embody their ideals, conserve
and develop the patrimony of the nation, promote the general welfare, and secure to themselves
and their posterity the blessings of independence under a regime of justice, liberty, and
democracy, do ordain and promulgate this Constitution.”

2.5. The 1943 Philippine Constitution

The Preparatory Committee for Philippine Independence (PCPI) promulgated the 1943
Philippine Constitution during the Philippine occupation of the country. Mostly of the members
of the PCPI were delegates to the convention that drafted the 1935 Constitution. The constitution
was ratified by the popular convention of the KALIBAPI in Manila on September 7, 1943.
Following its ratification, the Second Republic was then formally proclaimed. The
Second Philippine Republic was a single-party authoritarian republic. Jose P. Laurel was
appointed as President by the National Assembly and was inaugurated into office in October 14,
1943, and Benigno Simeon Aquino Sr. was the Speaker of the National Assembly.
The 1943 Constitution was in operation in Japanese-controlled areas of the Philippines
from October 14, 1943 to August 17, 1945. However, the United States and the Commonwealth
government which was in exiled did not recognize the said constitution. Laurel formally
dissolved the Second Philippine Republic following the surrender of Japan in World War II.
The Preamble of the 1943 Constitution reads: “The Filipino people, imploring the aid of
Divine Providence and desiring to lead a free national existence, do hereby proclaim their
independence, and in order to establish a government that shall promote the general welfare,
conserve and develop the patrimony of the Nation, and contribute to the creation of a world
order based on peace, liberty, and moral justice, do ordain this Constitution.
2.6. The 1943 Philippine Constitution
The 1973 Constitution was promulgated by the 1973 Constitutional Convention, after
President Ferdinand Marcos declared martial law. The 1973 Constitution ruled the Fourth
Philippine Republic from January 17, 1973 to February 22, 1986. A unicameral legislature was
established during this period, whose members were elected for a six-year term of office. The
President was elected from among the members of the national Assembly for a six-year term and
eligible for re-elections. The elected president will serve only as purely ceremonial head of state.
Executive power was exercised by the Prime Minister who was also elected from amongst the
members of the national assembly. The Prime Minister was the head of government and
Commander-in-Chief of the Armed Forces of the Philippines.
The 1973 Constitution amended on four occasions;
1. In the 1976 amendments, the Interim National Assembly was replaced by the Interim
Batasang Pambansa, the President would also become the Prime Minister and would
exercise legislative powers until the lifting of the martial law, the President can legislate
on his own on an “emergency” basis.
2. In the 1980 amendment, the retirement age of the members of the judiciary was extended
to 70 years.
3. In the 1981 amendments, the false parliamentary system was formally modified into a
French-style semi-presidential system were: executive power was restored to the
President, direct election of the President was restored, an Executive Committee
composed of the Prime Minister and not more than 14 members was created to “assist the
President in the exercise of his powers and functions and in the performance of his duties
as he may prescribe” and the Prime Minister was mere head of the Cabinet.
 4. The 1984 amendment abolished the Executive Committee and restored the position of
Vice-President.
The Preamble of the 1973 Constitution reads, “We, the sovereign Filipino people,
imploring the aid of Divine Providence, in order to establish a Government that shall
embody our ideals, promote the general welfare, conserve and develop the patrimony of our
Nation, and secure to ourselves and our posterity the blessings of democracy under a regime
of justice, peace, liberty, and equality, do ordain and promulgate this Constitution.”
2.7. The 1986 Freedom Constitution
Right after the 1986 People Power Revolution that compelled President Marcos to step
down from power, President Corazon Aquino issued Proclamation No. 3 to serve as a provisional
constitution. The proclamation contained some provisions adopted from the 1973 Constitution.
Powers such as government reorganization, removal of officials, appointment of a commission to
draft a new and more formal Constitution, which upon ratification, would supplant the Freedom
Constitution.
The first part of Proclamation No. 3 reads, “Whereas, the new government was installed
through a direct exercise of the power of the Filipino people assisted by units of the new armed
forces of the Philippines; whereas, the heroic action of the people was done in defiance of the
provisions of the 1973 constitution, as amended; Whereas, the direct mandate of the people as
manifested by their extraordinary action demands the complete reorganization of the
government, restoration of democracy, protection of basic rights, rebuilding of confidence in the
entire governmental system, eradication of graft and corruption, restoration of peace and order,
maintenance of the supremacy of civilian authority over the military, and the transition to a
government under a new constitution in the shortest time possible; Whereas, during the period
of transition to a new constitution it must be guaranteed that the government will respect basic
human rights and fundamental freedoms;
WHEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the
powers vested in me by the sovereign mandate of the people, do hereby promulgate the following
Provisional Constitution.”
2.8. The 1987 Philippine Constitution
The 1987 Philippine Constitution was drafted by a constitutional assembly that was
mandated in Proclamation No. 3. The commission composed fifty members appointed by
President Corazon Aquino from various backgrounds: former members of the House of the
Representatives, former justices of the Supreme Court, a Roman Catholic bishop, and political
activists against the Marcos regime. Cecilia Munoz-Palma, who was a former Associate Chief
Justice of the Supreme Court was elected by the commission as its president. The final draft of
the 1987 Constitution was finished on October 12, 1986 and was presented to President Aquino
on October. The constitution was ratified on February 8, 1987 through a nationwide plebiscite.
The 1987 Constitution operates since 1987, during the administration of Cory Aquino
(1986-1992), Fidel Ramos (1992-1998), Joseph Estrada (1998-2001), Gloria Macapagal Aquino
(2001-2010), Benigno Aquino III (2010-2016), and the current administration of Rodrigo Roa
Duterte (2016-present).
The Preamble of the 1987 Constitution reads, “We, the sovereign Filipino people,
imploring the aid of Almighty God, in order to build a just and humane society and establish a
Government that shall embody our ideals and aspirations, promote the common good, conserve
and develop our patrimony, and secure to ourselves and our posterity the blessings of
independence and democracy under the rule of law and a regime of truth, justice, freedom, love,
equality, and peace, do ordain and promulgate this Constitution.”
3 Evolution of Philippine Taxation
In today’s world, taxation is a reality that all citizens must content with for the primary
reason that governments raise revenue from the people they govern to be able to function fully.
In exchange for the taxes that people pay, the government promises to improve the citizens’ lives
through good governance. Taxation, as a government mechanism to raise funds, developed and
evolved through time, and in the context of the Philippines, we must understand that it came with
our colonial experiences.
3.1. Taxation in Spanish Philippines
The Philippines may have abundant natural resources even before the encroachment of
the Spaniards, but our ancestors were mainly involved in a subsistence economy, and while the
payment of tribute or taxes (buhis/buwis/handug) or the obligation to provide labor services to
the datus in some early Filipino communities in the Philippines may resemble taxation, it is
essentially different from the contemporary meaning of the concept.
The arrival of the Spaniards altered this subsistence system because 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 the
islands, such as salaries of government officials and expenses of the 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 reduccion (Spanish resettlement
plan) by creating pueblos (towns), where Filipinos were gathered and awarded plots of land to
till. Later on, the settlements will be handled by encomienderos who received rewards from the
Spanish crown for their services. Exempted from payment of tributos were the principales:
alcaldes, gobernadores, cabezas de barangay, soldiers, members of the civil guard, government
officials and vagrants.
The Filipinos who were once satisfied with agricultural production for subsistence had to
increase production to meet the demands of payments and a more intensive agricultural system
had to be introduced. Later on, half of the tribute was paid in cash and the rest with produce. This
financed the conquest of the Philippines.
Toward the end of the sixteenth century, the Manila-Acapulco trade was established
through the galleons, a way by which the Spaniards could make sure that European presence
would be sustained. Once a year, the galleon would be loaded up with merchandise from Asia
and sent to New Spain (Mexico), and back. This improved the economy of the Philippines and
reinforced the control of the Spaniards all over the country. Tax collection was still very poor
and subsidy from Spain would be needed through the situado real delivered from the Mexican
treasury to the Philippines through the galleons. This subsidy stopped as Mexico became
independent in 1820.
In 1884, the payment of tribute was put to a stop and was replaced by a poll tax collected
through a certificate of identification called the cedula personal. This is required from every
resident and must be carried while travelling. Unlike the tribute, the payment of cedulas is by
person, not by family. Payment of the cedula is progressive and according to income categories.
This system, however, was a heavy burden for the peasants and was easy for the wealthy. But
because of this, revenue collection greatly increased and became the main source of government
income. The Chinese in the Philippines were also made to pay their discriminatory cedula which
was bigger than what the Filipinos paid.
 Two direct taxes were added in 1878 and imposed on urban incomes. Urbana is a tax on
the annual rental value of an urban real estate and industria is a tax on salaries, dividends, and
profits. These taxes were universal and affected all kinds of economic activity except agriculture,
which was exempt to encourage growth.
Indirect taxes such as customs duties were imposed on exports and imports to further
raise revenue, especially during the nineteenth century when economic growth increased
exponentially. There were no excise taxes collected by the Spaniards throughout the years of
colonialism.
The colonial government also gained income from monopolies, such as the sale of
stamped paper, manufacture and sale of liquor, cockpits, and opium, but the biggest of the state
monopolies was tobacco, which began in 1781 and halted in 1882. Only certain areas were
assigned to cultivate tobacco, which the government purchased at a price dictated to the growers.
This monopoly made it possible for the colony to create a surplus of income that made it self-
sufficient without the need for the situado real and even contributed to the Treasury of Spain.
Forced labor was a character of Spanish colonial taxation in the Philippines and was
required from the Filipinos. It proved useful in defending the territory of the colony and
augmenting the labor required by woodcutting and shipbuilding especially during the time of the
galleon trade. Through the polo system, male Filipinos were obliged to serve, a burden that
resulted in an increase in death rate and flight to the mountains, which led to a decrease in
population in the seventeenth century. This changed later on, as polos and servicios became
lighter, and was organized at the municipal level. Labor provided was used in public works, such
as the building of roads and bridges. Some were made to serve the municipal office or as night
guards.
Males were required to provide labor for 40 days a year (reduced to 15 days a year in
1884). They may opt out by paying the fallas of three pesos per annum, which was usually lost to
corruption because it was collected at the municipal level and were known as caidas or
droppings. The polos would be called prestacion personal (personal services) by the second half
of the nineteenth 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 principales, or the former datus
and local elites who were co-opted by the Spaniards to subjugate and control the natives on their
behalf. The principales who were given positions such as cabezas de barangay or alcaldes in the
local government were able to enrich themselves by pocketing tributos and/or fallas, while the
peasants were left to be abused. Taxation appeared progressive but the disparity between the less
taxed principales and the heavily taxed peasants made the rich richer and the poor poorer.

3.2. Taxation under the Americans

The Americans who acquired the Philippines aimed to make the economy self-sufficient
by running the government with the smallest possible sum of revenue and create surplus in the
budget. From 1898 to 1903, the Americans followed the Spanish system of taxation with some
modifications, noting that the system introduced by the Spaniards were outdated and regressive.
The military government suspended the contracts for the sale of opium, lottery, and mint charges
for coinage of money. Later on, the urbana would be replaced by tax on real estate, which
became known as the land tax. The land tax was levied on both urban and rural real estates.
The problem with land tax was that land titling in the rural area was very disorderly: the
appraising of land value was influenced by political and familial factors and the introduction of a
taxation system on agricultural land faced objections from the landed elite. Tax evasion was
prevalent, especially among the elites.
 The Internal Revenue Law of 1904 was passed as a reaction to the problems of collecting
land tax. It prescribed ten major sources of revenue:
1. Licensed taxes on firms dealing in alcoholic beverages and tobacco,
2. Excise taxes on alcoholic beverages and tobacco products
3. Taxes on banks and bankers
4. Document stamp taxes
5. The cedula
6. Taxes on insurance and insurance companies
7. Taxes on forest products
8. Mining concessions
9. Taxes on business and manufacturing
10. Occupational licenses
The cedulas went through changes in the new law as the rate was fixed per adult male,
which resulted in a great decline in revenues. In 1907, some provinces were authorized to
double the fee for the cedula to support the construction and maintenance of roads. The
industria tax levied on the business community and became a highly complex systems that
assigned a certain tax to an industrial or commercial activity according to their profitability.
The new act also imposed a percentage tax on sales payable quarterly.
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.
To make up for the loss, then Governor General Francis Burton Harrison urged that tax receipts
be increased to make up for the loss. Minor changes were made to the 1904 Internal Revenue Act
such as the imposition of taxes on mines, petroleum products, and dealers of petroleum products
and tobacco.
New sources of taxes were introduced later on. In 1914, an income tax was introduced; in
1919, an inheritance tax was created; and in 1932, a national lottery was established to create
more revenue for the government. However, these new creations were not enough to increase the
government revenues.

3.3. 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 a progressive move;
but in 1940, a residence tax was imposed on every citizen aged 18 years old and on every
corporation.
In 1939, 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 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 inequitable. The lower class still felt the bulk of the burden
taxation, while the upper class, the landed 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 economic development as some
sectors still carried disproportionate share of the tax burden.
As World War II reached the Philippine shores, economic 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 the 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, manufacturers, 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.

3.4. Fiscal Policy from 1946 to present

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.
But the highly agriculture-based economy was disrupted. The United States may have declared
the Philippines independent, but as the country needed rehabilitation funds from the United
States, the dependency of the Philippines to the Americans was an opportunity to be taken
advantage of by the former colonial administrators. The economic situation was so problematic
that by 1949, there was a severe lack of funds in many aspects of governance, such as the
military and education sectors. No efforts were made to improve tax collection and the United
States advised the adoption of direct taxation. The administration of President Manuel Roxas
declined the proposal because it did not want to alienate its allies in Congress.
The impetus for economic growth came during the time of President Elpidio Quirino
through the implementation of import and exchange controls that led to import substitution
development. This policy allowed for the expansion of a viable manufacturing sector that
reduced economic dependence on imports. New tax measures were also passed, which included
higher corporate tax rates that increased government revenues – tax revenue in 1953 increased
twofold compared to 1948, the year when Quirino first assumed presidency.
While the succeeding presidencies of Magsaysay, Garcia, and Macapagal promised to
study the tax structure and policy of the country (through the creation of a Tax Commission in
1959 by means of Republic Act No. 2211) to make way for a more robust and efficient tax
collection scheme, post-war fiscal policy remained regressive, characterized by the
overburdening of the lowest classes while the landed elite who held business interests were in the
Congress to ensure that taxes would not be levied to them who belonged to the higher classes of
society. The period of the post-war republic also saw a rise in corruption. From 1959 to 1968,
Congress did not pass any tax legislation despite important changes in the economy ant the
vested interests of Filipino businessmen in Congress would manifest in many instances such as
the rejection of taxes on imports. 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 revenue. Collection of taxes remained poor; tax structure was still problematic; and much of
public funds were lost to corruption, which left the government incapable of funding products
geared toward development.
Under the Marcos authoritarian regime, the tax system remained regressive. During the
latter part of the Marcos’s years (1981-1985), the tax system was still heavily dependent on
indirect taxes, which made up 70% of total tax collection. The tax system also remained
unresponsive. Taxes grew at an average annual rate of 15% and generated a low tax yield. Tax
effort, defined as the ratio between the share of the actual tax collection in gross domestic
product and predictable taxable capacity, was at a low 10.7%.
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 to improve the
responsiveness of the tax system, promote equity by ensuring that similarly situated individuals
and firms bear the same tax burden, promote growth by withdrawing or modifying taxes that
reduce incentives to work or produces, and improve tax administration by simplifying the tax
system and promoting tax compliance.
A major reform in the tax system introduced under the term of Aquino was the
introduction of the value-added tax (VAT), with the following features;
1. Uniform rate of 105 on sale of domestic and imported goods and services and zero
percent on exports and foreign-currency denominated sales;
2. Ten (10) percent in lieu of varied rates applicable to fixed taxes (60 nominal rates),
advance sales tax, tax on original sale, subsequent sales tax, compensating tax,
miller’s tax, contractor’s tax, broker’s tax, film lessors and distributor’s tax, excise
tax on solvents and matches, and excise tax on processed videotapes;
3. Two percent tax on entities with annual sales or receipts of less than 5, 200, 000;
4. Adoption of tax credit method of calculating tax by subtracting tax on inputs from tax
on gross sales;
5. Exemption of the sale of basic commodities such as agriculture and marine food
products in their original state, price-regulated petroleum products and fertilizers; and
6. Additional 20% tax on non-essential articles such jewelry, perfumes, toilet waters,
yacht, and other vessels for pleasure and sports.
The VAT law was signed in 1986 and put to effect in 1988. While it was a reliable source
of revenue for the government, new taxes laws would reduce its reliability as legislated
exemptions 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 in the BIR in
general. As a result of the tax reform of the Aquino administration, both tax and revenue effort
rose, increasing from 10.7% in 1985 to 15.4% in 1992.
Greater political stability during the administration of Fidel Ramos in 1992 allowed for
continued economic growth. The Ramos administration ventured into its own tax reform
program in 1997 through the Comprehensive Tax Reform Program, which was implemented (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, and 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 in1997 to include services, through Republic Act
7716. The features of the improved VAT law were as follows:
 1. Restored the VAT exemptions for all cooperatives (agricultural, electric, credit or
multipurpose, and others) provided that the share capital of each member does not
exceed 515, 000 pesos.
2. Expanded the coverage of the term “simple processes” by including broiling and
roasting, effectively narrowing the tax base for food products.
3. Expanded the coverage of the term “original state” by including molasses.
4. Exempted from the VAT are the following:
a. Importation of meat
b. Sale or importation of coal and natural gas in whatever form or state
c. Educational services rendered by private educational institutions duly
accredited by the Commission on Higher Education (CHED)
d. House and lot and other residential dwellings valued at 51 million and below,
subject to adjustment using the Consumer Price Index (CPI)
e. Lease of residential units with monthly rental per unit of not more than 58,
000 subject using CPI
f. Sale, importation, printing, or publication of books and any newspaper
The succeeding term of President Joseph Estrada in 1998 was too short to
constitute any change in the tax system. Then Vice-President Gloria Macapagal-Arroyo
was swept to power through another EDSA Revolution. As president, she undertook
increased government spending without adjusting tax collections. This resulted in large
deficits from 2002 to 2004. The government had to look for additional sources of
revenue, and in 2005, the Expanded Value-Added Tax (E-VAT) was signed into law as
Republic Act 9337. This expanded the VAT base, subjecting to VAT energy products
such as coal and petroleum products and electricity generation, transmission, and
distribution. Select professional services were also taxed. In February 2006, the VAT tax
rate was also increased from 10% to 12%.
As President Benigno Aquino III succeeded President Arroyo in 2010, he
promised that no new taxes would be imposed and additional revenue would have to
come from adjusting existing taxes. The administration ventured into the adjustment of
excise tax on liquor and cigarettes or the Sin Tax Reform, motivations for which was
primarily fiscal, public health, and social order-related considerations. Republic Act
10351 was passed, and government revenues from alcohol and tobacco excise taxes
increased. Collections from tobacco and alcohol in 2015 made up 1.1% of the Gross
Domestic Product and the improvement in tax collection resulted in the Philippines
receiving a credit rating upgrade into investment grade status. The Sin Tax Reform was
an exemplar on how tax reform could impact social services as it allowed for the increase
of the Department of Health budget (triple in 2015) and free health insurance premiums
for the poor people enrolled in PhilHealth increased (from 55.2 million in 2012 to 515.4
million in 2015).
3.4.1 Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion
(TRAIN LAW)
The Tax Reform for Acceleration and Inclusion (TRAIN) is the first package in the
Comprehensive Tax Reform Program which the administration of President Rodrigo Duterte
is determined to implement in order to make the tax system simpler, fairer, and more
efficient. This will also correct some deficiencies in the Philippine tax system.
The goal of the first package of the Comprehensive Tax Reform Program (CTRP) or
TRAIN is to create a more just, simple, and more effective system of tax collection, as
provided for under the Philippine Constitution, where the rich will have a bigger
contribution and the poor will benefit more from the government’s programs and services.
The tax reform envisions to achieve the following by 2040:
1. Poverty rate reduced from 22% to 14% (uplifting some six million Filipinos from
poverty)
2. Law abiding country
3. Peace within the country and with our neighbors
4. To graduate to upper middle-income country status from the current low middle-
income country status
5. Eradicate extreme poverty
6. Inclusive economic and political institutions where everyone has equal opportunities
7. Achieve high-income country status
However, the vision of the tax reform could only be attained if there is growth investment
targeted at from 7 per cent to 10 per cent which can be done through sustainable
borrowings, budget reforms, tax and customs administration reforms, and tax policy
reform which should be complimented with economic reforms, enhanced competition,
improved food security, and simplified regulations.
Under the TRAIN Law the personal income tax (PIT) is lowered; the estate and donor’s
tax is simplified; the value-added tax (VAT) base is expanded; the excise tax of
petroleum products, automobiles and sweetened beverages is increased.
I. SALIENT FEATURES OF THE TRAIN LAW

A. Removal of personal and additional exemptions. The personal exemption of P50,

000.00 and additional exemption of P25, 000.00 per dependent enjoyed by taxpayers
in the old tax system had been removed. Under the TRAIN Law, the exemption is
simplified and made more straightforward, i.e., if the gross income of the taxpayers is
P250, 000. 00 and below, he/she is automatically exempted from paying the income
tax. In addition, the P2, 400. 00 premiums for health and hospitalization insurance
which was previously deductible from taxable income has also been removed.
B. Tax on lotto winnings and PCSO prizes are taxed 20% of the amount of the prize or
winnings is above P10, 000. 00.
C. Tax on pre-terminated long-term deposit is increased to a fixed 20% from the old rate
of 5-20%. Long-term time deposits (TD) or time deposits with duration of five years
and one day will continue to be tax-exempt.
D. Tax on interest income of foreign currency deposits in Philippine banks is increased
from 7.5% to 15%.
E. Tax on stock transactions. The sale of stocks not traded in the Philippine Stock
Exchange (PSE) is increased to 15% from 5-10%. Sale of stocks traded in the
Philippine Stock Exchange is taxed at 0.6% of the gross trade amount from 0.5%.
F. Documentary stamps tax is doubled from P1.50 to P3.00
G. Donor’s tax was revised to a flat rate of 6% regardless of the relationship between the
donor and the done from 2% to 15% if the donor and done are related and 30% if the
donation was to a stranger and donations or gifts below P250, 000. 00 are tax-exempt.
Under the new tax system, donations with value of at least P250, 000. 00 are taxed
6% on the amount in excess of P250, 000. 00.
H. Estate tax is at 6% flat rate on the amount in excess of P5 million. Estates with a net
value of P5 million and below is tax-exempt. Family homes that is valued at no more
than P10 million is also exempted from tax. Under the current tax laws, only family
homes worth P1 million are tax-exempt.
I. Cosmetic Surgery Tax. All cosmetic surgeries, aesthetic procedures, and body
enhancements intended to improve, alter, or enhance a person’s appearance is taxed at
5%.
J. The deadline to file BIR Form 1701Q, the quarterly ITR, for the first quarter every
year is moved from April 15 to May 15, beginning the year 2018.
4 Enrichment Activity
Directions: Give a concise explanation/ discussion on the following items. (20 points
each)
1. What is the difference between pre-colonial and Spanish era land system of ownership?
________________________________________________________________________
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________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
2. What is land reform program? How and why this should be implemented?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
3. What are the similarities and differences of the different Philippine Constitutions? (Note:
You can make a table/ matrix to emphasize their similarities and differences.)
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

4. The TRAIN LAW: How will this be of advantage to the country and the people?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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________________________________________________________________________
________________________________________________________________________

5 Reflection/ Analysis
Directions: Write a one-page reflection paper answering the question posted below. (40
points)
What are the factors that affected the social, economic, political, and cultural development of
the Philippines? Can you give five (5) possible recommendations that will strengthen/
minimize these factors?

6 Assessment
I. True or False
Directions: Read the statements very carefully. Write TRUE if the statement is true.
Otherwise, write FALSE in the space provided. (1 point each)
1. The 1935 Commonwealth Constitution was a result of the passage in the United
States Congress of the Hare-Hawes-Cutting Act.
2. The Philippine Commonwealth was interrupted by the Cold War.
3. Before 1973, the constitution in effect in the Philippines was the 1935 Constitution.
4. Landownership in the Philippines during the Spanish colonial period was a great
source of hatred and resentment among the Filipinos.
5. The American period ushered in a great improvement in landownership in the
country.
6. Agrarian reform under the dictator Ferdinand Marcos was a failure.
7. The cedula personal was optional during the Spanish period.
8. Direct taxation was suggested by the Americans after World War II, but then
President Manuel Roxas declined it.
9. The VAT or value-added tax was introduced during the time of President Elpidio
Quirino.
10. The Sin Tax Reform is a good example on how tax reform could impact social
services.
II. Matching Type
Directions: Listed in Column A are the land reforms implemented in the Philippines
while in Column A are the laws mandating them. Match the items in column A with
the items in column B. Write the letter only.

Column A Column B
11. Governed the relationship between the A. Executive Order No. 379
landowner and tenant farmer
12. Established LASEDEO and NARRA to B. Republic Act No. 1160
resettle landless tenants
13. Purchase and lease of haciendas and sale C. Republic Act No. 1199
and lease to the tenants
14. Introduced homestead system in the country D. Republic Act No. 1400
15. Created LTA responsible for the acquisition E. Republic Act No. 3844
and distribution of large tenanted rice and
corn lands
 16. Abolished share tenancy and F. Republic Act No. 6390
institutionalized leasehold
17. Created DAR and the Agrarian Reform G. Republic Act No. 6657
Special Account Fund
18. Known as the Comprehensive Agrarian H. Republic Act No. 9700
Reform Law
19. Broadened the scope of DAR making I. Public Land Act
responsible all reforms
20. Strengthened CARP and extend acquisition J. Rural Program Administration
of agricultural lands
K. Free Farmers Act

8 References

● Candelaria, John Lee P. and V.C. Alporha (2018). Readings in Philippine History First
Edition. Rex Book Store.
● Ligan, Victoria O., L.C. Apsay, L.C. Espino, C.S.T. Porras, E.D. Salinas, and J.J.
Lemana (2018). Readings in Philippine History. Mutya Publishing House, Inc.
● Rosales, Amalia C., R.R. Sebastian and J.R.B Viray (2020). Understanding Philippine
History: Readings and Discourse. Lorimar Publishing Inc.