1. Readings in Philippine History
CHAPTER 8
Presented by: Daryl G. Pante

2. "There is no other way the
government can raise money for
the needs of the people except
through taxes"
-Former President Rodrigo Duterte-

3. Taxation
Laying a tax where the
government generates
income to defray its
expenses

4. What is Tax?
A citizen's financial
contribution to the
government but is
proportionate to the
citizen's ability to pay

5. Taxes are what the public contribute for
civilized social order .It is mandatory for
everyone to contribute in order to raise
revenue for building the nation .People are
expected to believe and trust how the
government manage every contribution of the
people and that its intended benefits satisfy
the basic needs of the public.

6. DEVELOPMENTOF TAXATIONIN
THE PHILIPPINES: PRE- COLONIAL
TOPRESENT

7. Pre-colonial to Spanish
Occupation
•
•
•

8. Wolters (1983),

9. Plehn (1901),

10. Wolters (1983),

11. Plehn (1901),

12. Plehn (1901) identifies six (6) general heading
of the revenues in the insular budgets:
1. Direct taxes
(contribuciones
directas)
2. Indirect taxes
(contribuciones
indirectas)
3. The monopolies
(rentas
estancadas)

13. Plehn (1901) identifies six (6) general
heading of the revenues in the insular
budgets:
4. Lotteries 5. Public domain
(bienes de estado)
6. Miscellaneous
and indeterminate
revenues (ingresos
eventuales)

15. Plehn (1901),

16. THANK YOU

17. TYPES OF TAXES
ACCO RDI NG TO
WOLTERS (1983)
8th grade
Presented by : Lloyd Christian P. Porlaje

18. 03
02
Table of contents
DIRECT TAXES INDIRECT TAXES
MONOPOLIES AND 04
LOTTERIES
LABOR SERVICES
01

19. DIRECT TAXES

20.  IT IS ONE OF THE EARLIEST LEVIES OF THE SPANISH
CROWN UPON THEIR COLONIAL SUBJECTS WHICH WAS
ORIGINALLY A VASSALAGE PAYMENT (PRIESTLY, 1916).
THIS WAS LEVIED ON NATIVES, INCLUDING MESTIZOS
(CAPITACION PERSONAL DE CHINOS FOR CHINESE).
THE FOLLOWING ARE EXEMPTED FROM PAYING TRIBUTES :
 ALCALDES
 GOBERNADORES AND CABEZAS DE BARANGAY (OR THE
PRINCIPALIA) AND THEIR SONS
 MEMBERS OF THE GOVERNMENT OFFICIALS
 PAUPERS
 SPANIARD RESIDENT IN THE PHILIPPINES

21.  SANCIANCO Y GOSON IS KNOWN AS
FIRST FILIPINO ECONOMIST DURING THE
SPANISH RULE WHO PUSH THE
TERMINATION OF OF ALL CLASS
dISTINCTIONS AND INSTEAD TO
ESTABLISH PROPORTIONAL EQUALITY,
THAT IS JUST AND EQUITABLE IN THE
EXACTION OF EVERY TAX WITH
CONSIDERATION OF DIFFERENT
CONDITIONS AND CAPACITIES OF
TAXPAYERS.
GREGORIO SANCIANO Y GOSON’S SCULPTURE

22.  THE RATE, KNOWN AS 'ONE TRIBUTE',
WAS ORIGINALLY 8 SILVER REALES FOR
EACH FAMILY OR THEIR EQUIVALENT, 25
REALES DE VELLON, EQUAL TO 0.25
PESOS. AND SUBSEQUENTLY (1851)TO 12
REALES FUERTES OR 1.5 PESOS (PLEHN,
1901).
 IN 1853, TRIBUTE WAS TO BE PAID IN
KIND THAT LED LATER ON TO GREATER
FOOD PRODUCTION. THIS PREVAILED
dURING THE 17THCENTURY. CHICKEN,
RICE, COCONUT OIL AND WINE WERE THE
COMMON GOODS USED FOR PAYMENT
CUSHNER, 1971).
SPANISH COLONIAL REAL

23.  THE TRIBUTE SYSTEM WAS REPEALED IN 1884 AND REPLACED
bY A GRADUATED POLL TAX(OR CAPITACION, HEAD TAX). IT WAS
COLLECTED BY MEANS OF CERTIFICATE OF IDENTIFICATION OR
KNOWN AS CEDULA PERSONAL WHICH REQUIRES EVERY
RESIDENT TO OBTAIN. IT HAS TO BE CARRIED ALONG EVEN WHILE
TRAVELING; A SORT OF LICENSE TO EXISTS AND TO DO BUSINESS
ELLIOTT (1916).
 ACCORDING TO PLEHN (1901), 16 dIFFERENT CLASSES
OFCEDULAS WERE IMPOSED BY SPANIARDS ACCORDING TO
INCOME CATEGORY; THE HIGHEST CATEGORY PAYING 37.50
PESOS WHILE PEASANTS WERE PAYING 1.50 PESOS.
 THE SYSTEM WAS BELIEVED TO BE RELATIVELY HEAVY FOR
THOSE IN THE LOWEST CATEGORY AND LIGHT FOR THE RICHER
PEOPLE .IT BECAME THE MAIN SOURCE OF THE INCOME OF THE
gOVERNMENT DURING THE LAST DECADES OF THE SPANISH
COLONIAL GOVERNMENT.

24. INDIRECT TAXES

25.  THE TARIFF LAWS WAS DEVELOPED
dURING THE SECOND HALF OF THE
19TH CENTURY. EXCEPT FOR
TOBACCO MONOPOLY, ACCORDING
TO PLEHN (1901) IT WAS
dEVELOPED BY THE MIDDLE OF THE
CENTURY WHEREIN SPANISH SHIPS
HAD NEARLY ALL THE IMPORTS
WHILE MOST OF THE EXPORTS
WERE TRANSPORTED BY FOREIGN
VESSELS.THUS, TAXES WERE IN
THE FORM OF CUSTOMS DUTIES
WHICH WERE IMPOSED ON
IMPORTS AND EXPORTS. MANILA GALLEON TRADE

26. MONOPOLIES
AND LOTTERIES

27.  TAXES ON THE SALE ON STAMPED
PAPER, MANUFACTURE AND SALE OF
LIQUOR, AND COCKPITS AND OPIUM
WERE MONOPOLIES WHERE
SPANISH COLONIAL GOVERNMENT
dREW ITS INCOME. BUT THE MOST
IMPORTANT OF THE STATE
MONOPOLIES WAS THE TOBACCO . IN
THIS SYSTEM , THE GOVERNMENT
IDENTIFIED DISTRICTS FOR
COMPULSORY CULTIVATION OF
TOBACCO, PURCHASING OF THE
ENTIRE CROP AT A PRICE
dETERMINED BY THE AUTHORITIES
AND SOLD BY ITS AGENCIES.
TOBACCO MONOPOLY UNDER THE SPANISH RULE

28. LABOR
SERVICES

29.  AS PROVIDED IN THE SPANISH
COLONIAL POLICY, NATIVES HAVE TO
RENDER COMPULSORY LABOR. AS A
RESULT OF HISPANO-DUTCH WAR IN THE
FIRST HALF OF 17TH CENTURY, REQUIRED
SPANISH GOVERNMENT.IN THE
PHILIPPINES TO REINFORCE ITS NAVAL
dEFENSE.
 THIS EVENTUALLY IMPOSED MALE
FILIPINOS TO PROVIDE LABOR FOR
WOODCUTTING AND SHIPBUILDING
THROUGH THE POLO SYSTEM WHICH
WAS ORGANIZED BY THE ALCALDE
MAYOR OF THE PROVINCE. POLO Y SERVICIO SYSTEM

30.  ACCORDING TO PLEHN(1901),THE BURDEN OF THE POLO AND
OTHER LEVIES AGAINST THE FILIPINOS HAVE BEEN SO HEAVY
THAT BROUGHT INCREASE IN THE DEATH RATE AND THE FLIGHT
TO THE MOUNTAINS. IT COULD BE REDEEMED BY PAYING AN
ANNUAL FEE (FALLAS) OF 3 PESOS PER ANNUM WHICH IS TO BE
COLLECTED BY THE MUNICIPAL OFFICIALS.
 THE SYSTEM BECAME LIGHTER DURING THE FIRST HALF OF
THE 19TH CENTURY WHEN IT WAS ORGANIZED AT THE
MUNICIPAL LEVEL. POLISTAS RENDERED SERVICES IN PUBLIC
WORKS, ESPECIALLY IN BUILDING OF ROADS AND BRIDGES
(TANORIA, ONE WEEK PER YEAR) AND FOR NIGHTGUARD DUTIES
(SEMANEROS, ONE WEEK PER YEAR). BEFORE 1884, THE POLO
OBLIGATION WAS40 dAYS A YEAR BUT LATER ON REDUCED TO
15 dAYS IN THAT YEAR.

31.  POLO SERVICES WAS LATER CALLED PRESTACION
PERSONAL (PERSONAL SERVICES) IN THE SECOND HALF OF
THE 19TH CENTURY. THE DEMAND FOR MORE MANPOWER
FOR NATIONAL DEFENSE PURPOSES TOOK LABOR AWAY
FROM LOCAL GOVERNMENTS.
 TAX ADMINISTRATION DURING THE 17TH AND 18TH
CENTURY WAS UNDER THE CONTADOR DE’ RESULTAS(C HIEF
ROYAL AC C OUNTANT) WHICH FUNCTIONS IS SIMILAR TO THE
PRESENT BUREAU OF INTERNAL REVENUE.

32.  UNDER THIS SPANISH TREASURY WHEN THE
PHILIPPINES AS A COLONY HAD TO BE SUBSIDIZED
FROM 1521 TO 1821 IN THE AMOUNT OF P250,000
PER YEAR BECAUSE OF THE POOR FINANCIAL
CONDITION OF THE PHILIPPINES THAT CAN BE
ATTRIBUTED TO THE POOR REVENUE SYSTEM OF
COLLECTION.

33. THANK YOU FOR
LISTENING!!!

34. American Period--
Present

35. He described that during American
occupation direct taxes was also
imposed to Filipinos. But this system
used by US government was the direct
taxes that they have found in operation
in the Island--this is why Plehn believed
direct taxes could be traced back.

36. Under US rule, the Bureau of Internal Revenue
was formally organized in 1904 under the
Secretary of Finance of which was initially
occupied by Henry Ide (author of the Internal
Revenue of 1904).Americans adopted the
implementation of the witholding tax system
through RA690. This method of collecting
income tax upon receipt of the income resulted to
the collection of approximately 25% of the total
income tax collected during the said period.

37. During President Ferdinand Marcos
administration
The National Internal Revenue Code of 1977
was promulgated and updated the 1934 Tax
Code. When former President Corazon
Aquino became the next President, the
value-added tax (VAT) had been the massive
campaign and became the structural reforms
as stated in the 1986 T
ax reform Program of
her administration

38. This was followed by the use of the
Taxpayer Identification Number (TIN) and
the adoption of the New Payment Control
System and Simplified Net Income
Taxation Scheme under the Tax
Administration Program.

39. The policy of taxation in the country is chiefly governed by the
1987 Philippine Constitution and three (3) Republic acts, to
wit:
• That "the rule of the taxation shall be uniform and equitable"
and the "the Congress shall evolve a progressive system of
taxation (Article VI, Section 28 of 1987 Constitution)
•National Internal Revenue Code or RA No. 8424 or the Tax
reform Act of 1997 and subsequent laws amending it; the law
was most recently amended by RA10963 or the T
ax Reform
forAcceleration and InclusionAct:

40. • RA No. 7160 or the Local Government Code of 1991
which provides for the major sources of revenue for
local government units (LGUS) and those sourced
from the proceeds collected by virtue of local
ordinance.

41. The tax imposed at the national level
are collected by the Bureau of Internal
Revenue (BIR) while the local
treasurer's office collected those that
are imposed at the local level such as
provincial, city, municipal and
barangay

42. Basics of Taxation
The Department of Finance (DOF) explains
basic principle of tax system in the country.
As stated, taxes are public's mandatory
contributions to the government as revenue
sources for nation-building. People either
directly of indirectly pay their taxes according
to their income and/or level of consumption.

43. Income tax is based on the ability-to-pay
principle wherein people with higher income
should pay more while consumption tax is
based on the amount of goods and services
utilized such that the more one consume, the
higher the tax is being paid.

44. TRAIN LAW
PRESENTED BY: OGALESCO, KIER ADRIAN B.
CHAPTER 8

45. Taxation
◦An amount of money that a government
requires people to pay according to their
income, the value of their property, etc.,
and that is used to pay for the things
done by the government.

46. What is TRAIN LAW?
◦The Tax Reform for Acceleration and
Inclusion Law, officially designated
as Republic Act No. 10963, is the
initial package of the Comprehensive
Tax Reform Program signed into law
by President Rodrigo Duterte on
December 19, 2017.

47. What is train law in simple word?
◦Department of Finance explains
that the program seeks to
correct tax system deficiencies
by adopting mitigating measures
that are simpler, fairer and more
efficient as it live by the goal of
redistributing some of the gains
to the poor.

48. ◦In doing so, TRAIN law
would lower and simplify
personal income taxes
(wages, salaries), estate
and donor's taxes,
expanding the value-
added-tax (VAT)

49. What are the benefits of train
◦Health and Education
◦TRAIN will fund priority
programs and projects in
education , health , and
social care

50. Frequently ask question
1. Who will benefit from the adjustments in PIT?
- TRAIN will lower personal income tax (PIT) for all
taxpayers except the richest. Those with taxable income
below P250,000 will be exempt from paying PIT, while
the rest of taxpayers, except the richest, will see lower
tax rates ranging from 15% to 25% by 2020.
2. What about our bonuses and other benefits, will they be
exempt from taxes?
- Bonuses up to 90,000 pesos (increased fron 82,000) will continue
to be exempt from income tax.

51. 3. Why do we need to
impose additional
fuel excise tax?
- Petroleum excise
taxes have not been
adjusted for 20years
since 1997. Inflation
has eroded the
value of these
4. Why can't VAT rate be
lowered?
- Currently, the
Philippines has one of
the highest VAT rates in
the Southeast Asian
region.
5. Why do we need to adjust auto
excise tax?
- Adjusting oil and automobile excise
taxes and introducing excise tax on
sugar-sweetened beverages These
would eventually result to more
funds in infrastructure and social
services which can eliminate
extreme poverty and lessen
inequality in accessing the basic
services particularly in education,
health-care and infrastructures.
FREQUENTLY ASK QUESTION