Evolution of

Philippine
Taxation
By Group 1
 Ferdinand
Marcos Sr.
Enacted the Tax Reform Act of
1977
During the Latter part of
Marcos’ years (1981-1985), the
tax system was still heavily
dependent on indirect taxes,
which made up 70% of total tax
collection.
Taxes grew at an average annual
rate of 15% and generated a low
tax yield
 Corazon Aquino
A major reform in the tax
system introduced under the
term Aquino was the
introduction of the Value
Added Tax (VAT).
She reformed the tax system
through the 1986 Tax Reform
Program.
 Corazon Aquino
The VAT law was signed in
1986 and put to effect in 1988.

The tax reform of Aquino

administration, both tax and
revenue effort rose, increasing
from 10.7% to 15.4% in 1992.
 Fidel V. Ramos
Ventured into its own tax reform
program in 1997 through the
Comprehensive Tax Reform
Program, which was implemented
to:
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
 Fidel V. Ramos
Ventured into its own tax reform
program in 1997 through the
Comprehensive Tax Reform
Program, which was implemented
to:
3. Encourage payments by
increasing tax exemptions levels,
lowering the highest tax rates,
simplifying procedure;
4. Rationalize the grant of tax
incentives, which was estimated to
be worth 531.7 billion pesos in 1994
 Joseph Estrada
The succeeding term of
President Joseph Estrada in
1998 was too short to
constitute in any change in
the tax system.
The lack of significant tax
reforms hindered efforts to
improve revenue collection
and address economic
disparities, contributing to
social discontent.
 Gloria Macapagal-
Arroyo
She undertook increased
government spending without
adjusting tax collections.
In 2005, the Expanded Value-
Added Tax (E-VAT) was
signed into law as Republic
Act 9337.
In February 2006, the VAT tax
rate was also increased from
10% to 12%
 Benigno Aquino III
The Administration ventured
into the adjustment of excise
tax on liquor and cigarette or
the Sin Tax Reform made law
by Republic Act 1035.
It allows the increase the
budget of the DOH and
PhilHealth (from 55.2 million in
2012 to 515.4 million in 2015).
 Rodrigo Duterte
Supported the implementation
of the Tax Reform for
Acceleration and Inclusion
(TRAIN) law.
Vowed to lower income tax
rates shouldered by working
Filipinos.
The proposed tax reform also
seeks to limit VAT exceptions
and increase excise tax on
petroleum products and
automobiles.
 Ferdinand
Marcos Jr.
Signed the Ease of Paying Taxes
Act into law, aimed at
simplifying the tax filing process
for small and medium
enterprises and improve revenue
collection through digitalization
initiatives.
Pushed the legalization of Real
Property Valuation and
Assessment Reform Act and
Passive Income and Financial
Intermediary Taxation Act.
References
https://www.studocu.com/ph/n/5523598?
sid=289516101712761935
https://newsinfo.inquirer.net/1885010/presi
dent-marcos-signs-ease-of-paying-taxes-
act-into-law
https://www.bworldonline.com/top-
stories/2022/07/26/463518/marcos-vows-
tax-system-overhaul/
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