LAND OWNERSHIP IN THE PHILIPINES UNDER In return for such a duty, the encomiendas

SPAIN enjoyed the right to have a share in the tribute

(tributo) paid by natives.
PRE – SPANISH ERA
Legaspi himself had granted encomiendas to
Land was not equally distributed before the
the friars, like the Agustinians in Cebu and
Spaniards came to the Philippines
Manila.
- The notion of private property was known
Almost all grants that Legaspi extended to the
then.
Spanish officials and friars were confined to
- The community (barangay) own the land. what would eventually become the province of
Cavite, Laguna, Batangas, and Bulacan.
SPANISH PERIOD (1521-1898)
Much later, in place of the encomiendas, the
One of the major initial policies of the Spanish authorities began to group together
governorship of Legaspi was to recognize all several barangays into administration units.
lands in the Philippines as part of public domain
regardless of local customs. They termed these units as pueblos or
municipios which were governed by
As such, the crown was liberty to parcel out gobernadorcillos.
huge tracts of Philippine lands as rewards to
loyal civilian and military as rewards. Together, the cabezas and governadorcillos
made up of the landed class known as caciques
In effect, communal ownership of land gradually (landed class).
and slowly took the backseat. Private ownership
of land was introduced.

With this arrangement, every municipal At the passing of time, the Filipinos caciques
resident was given his choice of the land for intermarried with Spaniards. This gave such
cultivation, free from tax. class as mestizo cast which exists to this day.

Large tracts of uncultivated lands not Through this enviable position, the cabezas the
circumscribe within a given municipality were gobernadorcillos gained more and more stature
granted by the Spanish monarch to deserving or prestige with the Spanish civil and
Spaniards. This kind of ownership became ecclesiastical authorities, and the common
known as the encomienda. people.

ENCOMIENDA SYSTEM

The encomienda system in the Spanish colonies In time, the caciques were given the prerogative
began as a result of a Royal Order promulgated of collecting taxes as well.
in December of 1503.
This act vested in them great power. Certainly,
By virtue of this Royal Order, encomiendas were this did not help to endear them to the ordinary
granted to favor Spanish officials and clerics people.
who were entrusted the responsibility to look
CACIQUISM
after the spiritual and temporal developments
of the natives in a colonized territory. Caciquism as an institution became deeply
rooted in Philippine soil. This paved the way to
many present- day agrarian problems and The Maura Law, named after its author Spanish
unrests. Minister of Colonies Don Antonio Maura, was
promulgated. The law instituted major reforms
As the cacique system grew, it also became
in local administration in the Philippines,
more oppressive.
including a complete reorganization of the local
This brought about colonial uprisings during the government structure and granting Filipinos the
19th century, which tended to occur in the power to elect their local leaders.
areas with much agricultural activity such as
Other strategies of dispossessing peasants of
Central Luzon.
their landholdings were:
Agrarian-related problems were the only source
1. Outright purchase at a low price for real
of major conflicts during this time. Land was in
estates ( realanga) by a Spaniards or a cacique,
the entire archipelago.
form a badly-in-need peasants.
The major sources of conflict and rebellion were
2. Mortgage system (pacto de retroventa); this
really the harsh Spanish impositions, such as:
is equivalent of today's mortgage system
tributo, polo, encomienda, etc.
(sangla).
During the 19th century, several developments
The mortgage system
occurred that solidified the land tenure system,
and aroused antagonism over its injustices and The mortgage system is equivalent of today's
inequalities. mortgage system (sangla), where a landowner
who was loaned a peasant some money
Since the Spaniards did not levy a land tax or a
becomes this peasant landlord.
head tax (cedula), and few records of land-
ownership were kept, the Spaniards This happened simply because the system
government issued two Royal Decrees: decreto required the land to be collateral. While
realanga (1880) and the Maura Law (1894) peasant had not paid back his loan, he paid the
landlord rent for the use of his land.
These decrees ordered the caciques and
natives, to secure legal title for their lands or Another source of land-related conflict by the
suffer forfeiture. late 19th century was the " friar lands". Many
farmers questioned the amount of land in grant
The Filipino peasants, either ignorant of the
given by the Spanish crown to the religious
processes of the law or of the Spanish-written
orders (i.e. Augustinians, Dominicans,
instructions, were just slow to respond. The
Franciscans, and Recollect Orders). Tanants
landowners (caciques) were quick to react. They
( inquilinos) paid tax termed as "canon" to the
did not only register their own landholdings but
friars.
also took advantage of the ignorance of the
peasents, by claiming peasant lands adjacent to LAND OWNERSHIP IN THE PHILIPPINES UNDER
their own holdings. THE AMERICANS

The Royal Decree of 1895 (Maura Law) PROBLEMS - LANDLESSNESS

The Royal Decree of 1895 (Maura Law) deprived - The very reason of the social unrest of
many Filipino peasants of their own lands filipinos.
through scheming and treacherous ways of
both Spaniards and caciques.
- Poor farmers were asked to pay taxes for the these lands were sold to Americans and Filipino
land they were living in businessmen.

- Tenancy was practiced during this time -Besides those, this land reform lacked support
mechanisms, wherein if a farmer receives a
SOLUTIONS
land, he only receives a land and nothing more.
Land Policies were proposed to distribute
-Because of that, many Filipinos were forced to
ownership among the Filipinos. These policies
settle back to tenancy. Filipino hacienderos buy
include:
the lands and some forcefully take over lands of
1. Philippine Bill of 1902 tenants who cannot pay their taxes and debts.

- provided regulations on the disposal of public -Due to this, the number of tenants increased
lands resulting to peasant uprisings:

- states that a private individual could own 16 1 Colorum Uprising

hectares of land while corporate landholders
2 Sakdal Uprising in Luzon
could own 1,024 hectares
SAKDAL UPRISING
- Americans can own agricultural lands
- Central Luzon
2. Land Registration Act (Act No. 496)- Torrens
- two days (May 2 and 3 1935)
System
- showed social inequality (land
- introduced the TORRENS SYSTEM where ownership and tenancy)
people will register their names as land owners - Sakdal to accuse (nasasakdal)
- Sakdal title of the newspaper made by
- this is expected to provide a more organized Benigno Ramos
system within land ownership - This newspaper led to the
3. Homestead Program establishment of Partido Sakdalista in
1933.
- states that a tenant (poor farmer) could start
an agricultural business by acquiring a 16- Partido Sakdalista
hectare farm land wanted reforms such as abolition of taxes,
- limited to northern Luzon and Mindanao equal ownership of land opposed the
because the Americans find it hard to colonize Nacionalista Party's acceptance of gradual
these parts independence from US because they wanted
immediate cutting of ties with the Americans
THE PROBLEM OF THESE PROGRAM
In the 1934 elections, they garnered three seats
-Landownership only worsened under the in the House of Representatives.They started an
Americans because there was no limit on what uprising in 1935 but did not succeed. Due to this
extent a person can own. The only beneficiaries loss, Ramos left the country and Partida
from this system were the rich, since they can Sakdalista collapsed.
afford to buy the lands as long as they can.
OUTCOMES
-Also, not all the friar lands (public government
lands) were given to poor farmers, instead
There are so many programs proposed and (NARRA) under the administration of President
applied to the country in order to resolve the Ramon Magsaysay.
land problems.
Agrarian reform
But all these efforts failed due to budget
Under the administration of Ramon Magsaysay,
allocations. The interventions
there were several interventions for land
and attempts to solve the land problems were reform. First president Magsaysay convinced
put to a stop due to World War II when we the congress to pass legislation to improve the
were colonized by the Japanese. land situation.so that Republic Act NO.1199 or
the Agricultural Tenancy act was passed in
INTERVENTIONS TOWARD AGRARIAN REFORM
order to protect the tenurial rights of tenants
Agrarian reform enforce tenancy practices.

Agrarian reform is also a government strategy Second, the Court of Agricultural Relations was
aimed at transferring land ownership from created in 1955 purposely to improve tenancy
affluent landowners to landless farmers or security and resolve land disputes. Third,the
farmworkers. establishment of the Agricultural Tenancy
Commission to administer created by tenancy.
By donating land to individuals who farm it, the
idea is to increase agricultural output, eliminate Fourth, the creation-of Agricultural Credit and
poverty, and promote social justice. After the Cooperative Financing Administration (ACCFA)
war, rehabilitation and reconstruction centered mainly to provide warehouse facilities and assist
on finding answers to past difficulties. President farmers in marketing products.
Roxas' government enacted Republic Act No.
Lastly, the administration lead establishment of
34,
Agricultural Banks to provide easier terms in
which established a 70-30 sharing agreement applying for a lot and other farm lands.
between tenant and landlord, lowering the
PRIMARY SOURCE: DECLARATION OF POLICY
interest rate on landowners' loans to renters to
UNDER RA NO. 3844 OR AGRICULTURAL LAND
6% or less.
REFORM CODE
LASEDECO
SOURCE: SECTION 2. DECLARATION OF POLICY-
The government also attempted to redistribute IT IS THE POLICY OF THE STATE:
hacienda lands, falling prey to the woes of
1.To establish owner-cultivator ship and the
similar attempts since no support was given to
economic family- size farm as the basis of
small farmers who were given lands Under the
Philippine agriculture and, as a consequence,
term of President Elpidio Quirino, the Land
divert landlord capital in agriculture to
Settlement Development Corporation
Industrial development:
(LASEDECO) was established to accelerate and
expand the resettlement program. 2. To achieve a dignified existence for the small
farmers free from pernicious institutional
NARRA
restraints and practices:
This agency later became the National
3.to create a truly viable social and structure in
Resettlement and Rehabilitation Administration
agriculture conducive to greater productivity
and higher farm incomes;
4. To apply all labor laws equally and without productivity, provide employment to more
discrimination in both industrial and agricultural agricultural workers, and put an end to conflicts
wage earners; regarding land ownership.

5. To provide a more vigorous and systematic Ferdinand E. Marcos (1965-1986)

land resettlement program and public land
• Presidential Decree No. 27 became the heart
distribution;
of the Marcos reform. It provided for tenanted
6. To make the small farmers more lands devoted to rice and corn to pass
independent, self-reliant and responsible ownership to the tenants, and lowered the
citizens, and a source of genuine strength ceilings for landholdings to 7 hectares. The law
society stipulated that share tenants who worked from
a landholding of over 7 hectares could purchase
RA NO. 3844 OR AGRICULTURAL LAND REFORM
the land they tilled, while share tenants on land
CODE
less than 7 hectares would become
- ABOLISH SHARE TENANCY leaseholders.
- AIM TO FREE TENANTS FROM TENANCY
•This agrarian reform program was designed to
- EMPHASIZE OWNER CULTIVATORSHIP
uplift the farmers from poverty and ignorance
- AND FARMER INDEPENDECES
and to make them useful, dignified, responsible
POST 1986 AGRARIAN REFORM and progressive partners in nation-building. This
AR program was a package of services extended
What is Agrarian reform? to farmers in the form of credit support,
Agrarian reform, redistribution of the infrastructure, farm extension.
agricultural resources of a country. Traditionally 5 MAJOR COMPONENTS OF PRESIDENT
agrarian or land, reform is confined to the MARCOS' AGRARIAN REFORM PROGRAM
redistribution of land
- Land Tenure Program
President Diosdado Macapagal - Physical Development
• He was considered the father of agrarian - Institutional Development
reform it was during his term that the - Agricultural Development
Agricultural land reform code or RA No. 3844 - Human Resources
was enacted on August 8 1963. This is agrarian President Marcos’ agrarian reform program was
reform law in the Philippines Comprehensive labeled as “revolutionary” by some sectors, for
agrarian reform program Its farmer is giving two reasons: It was pursued under Martial Law
certificates of land ownership award or CLOA and intended to make quick changes without
for their new property. Under the law a going through legislative or technical processes;
landowner can only retain 5 hectares regardless and It was the only law in the Philippines ever
of the size of the hacienda. done in handwriting.
Post 1986 Agrarian Reform •Scope of program was limited only to
• Its goals are to provide landowners equality in tenanted, privately- owned rice and corn lands;
terms of income and opportunities, empower • Foreign and local firms were allowed to use
land owner beneficiaries to have equitable land large tracks of land for their business;
ownership, enhance agricultural production and
•Declaration of Martial Law leading to the of adherence to democratic principles, this law
arrest of several farmer leaders without due was found to have many flaws.
process of law due to suspension of the Writ of
• Various sectors recognized agrarian reform as
Habeas Corpus.
a worthwhile social investment. In terms of the
Proclamation No. 1081 on September 21, 1972 tenant-tiller status, this improved particularly
ushered the Period of the New Society. Five those within landowners’ retained areas or on
days after the proclamation of Martial Law, the landholdings subject for coverage.
entire country was proclaimed a land reform
• It’s during this administration that the present
area and simultaneously the Agrarian Reform
adjudication system was introduced. This gave
Program was decreed.
DAR, the original and exclusive jurisdiction over
President Marcos enacted the following laws: agrarian disputes as quasi-judicial powers.

- Republic Act No. 6389, (Code of • Also, livelihood and agro-industrial projects
Agrarian Reform) and RA No. 6390 of promoted and program of support services
1971 -- Created the Department of were intensified to help farmer beneficiaries
Agrarian Reform and the Agrarian become productive and transform them into
Reform Special Account Fund. It entrepreneurs
strengthen the position of farmers and
• This administration received much support
expanded the scope of agrarian reform.
and active involvement in program
- Presidential Decree No. 2, September
implementation from key stakeholders such as
26, 1972 -- Declared the country under
people’s organization, farmer’s association,
land reform program. It enjoined all
NGO’s and from prominent landowners
agencies and offices of the government
themselves.
to extend full cooperation and
assistance to the DAR. It also activated •Despite the Agrarian Reform Fund (ARF), this
the Agrarian Reform Coordinating administration experienced a major budgetary
Council. shortfall due to low remittances from the Asset
- Presidential Decree No. 27, October 21, Privatization Trust and the Presidential
1972 -- Restricted land reform scope to Commission on Good Government.
tenanted rice and corn lands and set
the retention limit at 7 hectares. • This administration also experienced constant
changes in DAR leadership. This led to lack of
Corazon C. Aquino (1986-1992) continuity of priority, programs and projects.
• The Constitution ratified by the Filipino people Allegation on lack of political wills leadership
during the administration of President Corazon and genuine commitment to implement the
C. Aquino provides under Section 21 under program. Critics say that the President could
Article II that “The State shall promote have implemented a genuine agrarian reform
comprehensive rural development and agrarian program because of her revolutionary powers
reform.” after People Power I.
•Comprehensive Agrarian Reform Law (CARL), On July 22, 1987, Aquino issued Presidential
was passed to promote social justice and Proclamation 131 and Executive Order 229,
industrialization. Although it was still a product which outlined her land reform program
On June 10, 1988, former President Corazon C. law is still the one being implemented at
Aquino signed into law Republic Act No. 6657 or present.
otherwise known as the Comprehensive
 Executive Order No. 405, June 14, 1990
Agrarian Reform Law (CARL). The law became
effective on June 15, 1988. – Vested in the Land Bank of the Philippines the
responsibility to determine land valuation and
compensation for all lands covered by CARP.

President Corazon C. Aquino enacted the

following laws:
 Executive Order No. 407, June 14, 1990
 Executive Order No. 228, July 16, 1987
- Accelerated the acquisition and distribution of
Declared full ownership to qualified farmer-
agricultural lands, pasture lands, fishponds,
beneficiaries covered by PD 27. It also
agro-forestry lands and other lands of the public
determined the value remaining unvalued rice
domain suitable for agriculture.
and corn lands subject of PD 27 and provided
for the manner of payment by the FBs and THE CARPER AND THE FUTURE OF AGRARIAN
mode of compensation to landowners. REFORM IN THE PHILIPPINES
 Executive Order No. 229, July 22, 1987 Pre-spanish Period - "This land is ours, God gave
this land to us"
– Provided mechanism for the implementation
of the Comprehensive Agrarian Reform Program Spanish period - "united we stand, divided we
(CARP). fall"
 Proclamation No. 131, July 22, 1987 First Philippine Republic - "the yoke has finally
broken"
– Instituted the CARP as a major program of the
government. It provided for a special fund American Period - "long live america"
known as the Agrarian Reform Fund (ARF), with
an initial amount of Php50 billion to cover the Commonwealth Period - "Government for the
estimated cost of the program from 1987-1992. Filipinos”

 Executive Order No. 129-A, July 26, Japanese Occupation - “The era of Hukbalahap"
1987 Philippine Republic - "The new Republic"
– streamlined and expanded the power and WHAT ISCARP/CARPER?
operations of the DAR.
COMPREHENSIVE AGRARIAN REFORM
 Republic Act No. 6657, June 10, 1988 PROGRAM
-(Comprehensive Agrarian Reform Law) – An act It is a social justice Government program
which became effective June 15, 1988 and initiative that aims to grant landless farmers
instituted a comprehensive agrarian reform and farm workers ownership of agriculture.
program to promote social justice and
industrialization providing the mechanism for its Its objectives are to equalize the income and
implementation and for other purposes. This opportunities of landowners, enable
beneficiaries to own their land in an equitable However, After 27 years of land reform and Two
manner, increase agricultural productivity, hire Aquino administrations. 500,000 of lands
more agricultural employees, and end disputes remain undistributed.
over ownership of land.

When was the CARP law implemented?

The law was outlined by former President

Corazon C. Aquino through Presidential
Proclamation 131 and Executive Order 229 on
June 22,1987, and it was enacted by the 8th
Congress of the Philippines and signed by
Aquino on June 10,1988.

CARPER

COMPREHENSIVE AGRARIAN REFORM

PROGRAM EXTENSION WITH REFORMS

Section 30 of RA 9700 law

-states that cases on the matter which are still

pending "shall be allowed to proceed to its
finality and be executed even beyond such date.

It is the amendatory law that extended the

deadline of CARP to five more years.

CARP/CARPER

-The new deadline of CARP expired in 2008,

leaving 1.2M farmer beneficiaries and 1.6M
hectares of agricultural land to be distributed to
farmers.

-In 2009, Pres. Arroyo signed the Republic act

No. 9700 or the Comprehensive Agrarian
Reform Program Extension with Reforms
(CARPER)

 OWN
 CULTIVATE
 CONTROL
 ENHANCE

From 2009 to 2014

(Of distribution and implementation) CARPER

has distributed a total of1 Million hectares of UNSUCCESFUL
land to 900,000 farmer beneficiaries. Distribution and Implementation Failed
  Limited Resources Declared the country under land reform
 Opposition of Landlords program. It enjoined all agencies and offices of
 Lack of support from the legislation the government to extend full cooperation and
assistance to the DAR. It also activated the
AGRARIAN REFORM EFFORTS UNDER MARCOS
Agrarian Reform Coordinating Council.
Pre-Martial Law
 Presidential Decree No. 27, October 21,
Ferdinand Marcos born in September 11, 1917 1972
died in September 28, 1989, Honolulu, Hawaii,
This shall apply to all tenant farmers of private
United States. He is a former president on
agricultural lands primarily devoted to rice and
December 30, 1965 to February 25, 1986.
corn under a system of sharecrop or lease-
Ferdinand Marcos was the president of the
tenancy, whether classified as landed estate or
Philippines from 1966 to 1986.
not;
- Proclamation No. 1081 on September 21, 1972
- The tenant farmer, whether in land classified
ushered the Period of the New Society. Five
as landed estate or not, shall be deemed owner
days after the proclamation of Martial Law, the
of a portion constituting a family-size farm of
entire country was proclaimed a land reform
five (5) hectares if not irrigated and three (3)
area and simultaneously the Agrarian Reform
hectares if irrigated;
Program was decreed.
- In all cases, the landowner may retain an area
President Marcos enacted the following laws:
of not more than seven (7) hectares if such
 Republic Act No. 6389, (Code of landowner is cultivating such area or will now
Agrarian Reform) and RA No. 6390 of cultivate it;
1971
- For the purpose of determining the cost of the
Created the Department of Agrarian Reform land to be transferred to the tenant-farmer
and the Agrarian Reform Special Account Fund. pursuant to this Decree, the value of the land
It strengthens the position of farmer and shall be equivalent to two and one-half (2½)
expanded the scope of agrarian reform. times the average harvest of the three normal
crop years immediately preceding the
This Act concerns agrarian reforms in the promulgation of this Decree;
Philippines and consists of 39 sections. It aims
to establish cooperative cultivator ships and - The total cost of the land, including the
therefore divert landlord capital in agriculture interest at the rate of six (6) percentum per
to industrial development. The Act also aims to annum, shall be paid by the tenant in fifteen
increase agricultural productivity and farm (15) years of fifteen (15) equal annual
income through a system of production, amortizations;
processing, marketing, distribution, credit and
TAXATION DURING THE COMMONWEALTH
services. The Act introduces an agricultural
PERIOD
leasehold system as well as a program including
land capability survey, classification and TAXATION DURING THE COMMONWEALTH
registration. PERIOD

 Presidential Decree No. 2, September New measure and legislation were introduced
26, 1972 to make the taxation system appear more
equitable during the Commonwealth. Income by the Spanish government, which had
tax rates were increased in 1936, adding a control over the islands for more than three
surtax rate on individual net incomes in excess centuries. The most prominent features of
10,000 pesos. Income tax rate of corporation the central or insular revenue system that
were also increased. has historical implications include Tributo,
Sanctorum, Donativo, Caja de Comunidad,
In 1937, the cedula tax was abolished, which and Servicio personal or polo y servicios.
appeared to be a progressive move; but in
The imposition of these taxes and other
1940, a residence tax was imposed on every
forms of economic abuses by the Spanish
citizen aged 18 years old and on every
government led to several revolts and
corporation.
resistance from the Filipino people. These
In 1939, the Commonwealth government revolts caught the attention of the Spanish
drafted the National Internal Revenue Code, government, which eventually led to a tax
introducing major changes in the new tax reform in 1884. The reform was introduced
to make the tax system more efficient and
system, as follows;
fair. This tax reform was provided by the
 The normal tax of three percent and the Royal Decree of March 6, 1884. However, it
surtax on income was replaced by a was not enough to address the economic
single tax at a progressive rate. abuses of the Spanish government, and it
 Personal exemptions were reduced. failed to prevent the Philippine Revolution in
 Corporation income tax was slightly 1896.
increased by introducing taxes on Overall, the forms of taxes obligatory by the
inherited estates or gifts in the name of Spanish government on the Filipinos and
dead persons. the revolts that were carried out against
 The cumulative sales tax was replaced them and other forms of economic abuses
by a single turnover tax of 10% on are significant factors in the Philippine
luxuries. struggle for independence. The resistance
 Taxes on liquors, cigarettes, forestry from the Filipino people eventually forced
products, and mining were increased. the Spanish government to introduce tax
 Dividends were made taxable. reforms, but it was not enough to address
the root cause of the problem.
TAXATION OF THE PHILIPPINES
DURING THE SPANISH COLONIAL TAXES IMPOSED BY THE
TOPICE OUTLINES: SPANISH GOVERNMENT IN
 TAXES IMPOSED BY THE THE PHILIPPINES
SPANISH GOVERNMENT IN THE
PHILIPPINES Taxes during the Spanish period was
 REVOLTS AGAINST THE compulsory. All the Spanish Colonies in
TRIBUTE America and the Philippines were required
 THE TAX REFORM OF 1884 to pay taxes for two reasons.

During the Spanish colonial period, the 1. As recognition of Spain's Sovereignty

Philippines was subjected to various forms over the Colonies.
of taxes that were obligatory for the Filipino 2. To defray the expenses of pacification
people to pay. These taxes were imposed (The act of forcibly suppressing hostility
within the colonies) and governance, was double in amount that levied on
thereafter. the natives, and they paid two reales
for the tithe, one real for the com-
TRIBUTO
munity fund and three reales for the
 Tributo was a general tax paid by sanctorum.
the Filipinos to Spain which  The tribute the native " Indians "
amounted to eight reales. Those paid, in the same manner, three
who were required to pay the tributo other taxes, amounting in all to five
the: silver reales; one real for the tithe
(diezmos predia/es), one real for the
a) 18 to 50 years old males com-munity fund (cala de
b) The Carpenters, bricklayers, comunidad) and three reales for the
blacksmiths, tailors and church, under the name of the
shoemakers sanctorum.
c) Town workers such as those in
road construction, and those
SANCTORUM
whose is public in nature.
 Sanctorum was a tax in the amount
of 3 reales. These were required for
 Tribute from Natives -One of the the cost of Christianization, including
laws of the Indies, several times the construction of the churches and
promulgated anddating originally the purchase of materials for
from 1523, nearly fifty years before religious celebrations.
the conquest of Manila.
Sanctorum was a tax that was imposed
 The collection of this "tribute" was
during the Spanish colonial period in the
commenced in the Philip- pines
Philippines. This tax was equivalent to 3
immediately after their conquest by
reales and was specifically intended to
Legaspi and was continued until
finance the cost of Christianization, which
I884, a period of over three
included the construction of churches and
hundredyears, with but little change
the purchase of materials necessary for
in form or in the methods of
religious celebrations. The Spanish
administration and with nochange in
colonizers saw the spread of Christianity as
principle.
an important aspect of their mission in the
 The rate, known as "one tribute,"
Philippines, and the Sanctorum tax played a
was originally 8 silver reales for each
crucial role in funding the efforts to convert
family.
the local population. While the tax may have
 From I635 to the middle of the
had some benefits in terms of the spread of
nineteenth century there was a
Christianity, it also represented a burden for
further addition to thetribute, at the
the local population who were forced to pay
rate of one-half real for each
for a religion that was not necessarily their
contributor, ostensibly for the
own.
conquest of Jolo. This was known as
the donativo de Zamboanga. DONATIVO
 The tribute demanded from the
 Donativo was the tax in the amount
mestizos (that is, ordinarily the sons
of half real for the military campaign
by native women of the Sangleyes,
of the government against the
or Chinese traders, in the islands)
 muslims. In the later years, however, services in the Philippines during the
the amount collected from donativo Spanish colonial period. While the tax was a
was almost exclusively used for the burden on the population, it played a
Spanish fort in Zamboanga. significant role in the improvement of public
infrastructure and the overall development
Donativo was a tax imposed by the Spanish
of the towns and communities in the
colonial government in the Philippines
Philippines during that time.
during the 19th century. It was initially
meant to support the military campaign
against the Muslims, with a tax of half a real
SERVICIO PERSONAL
(a former Spanish coin) per person.
However, in later years, the tax was  Polo y servicio is the system of
primarily used for the construction and forced labor which evolved within the
maintenance of the Spanish fort in framework of the encomienda
Zamboanga. This tax was met with system, introduced into the South
resentment and opposition from the Muslim American colonies by the
population who felt that they were being Conquistadores and Catholic priests
unfairly targeted and heavily burdened. who accompanied them. It was
Despite this, the tax remained in place for present in almost all of the Spanish
several years, contributing to the tensions colonial government around the
between the Spanish colonial government world. Polo y servicio is the forced
and the Muslim population in the labor for 40 days of men ranging
Philippines. from 16 to 60 years of age who were
obligated to give personal services
to community projects. One could be
CAJA DE COMUNIDAD exempted from polo by paying the
falla (corruption of the Spanish Falta,
 Caja de comunidad was a tax
meaning "absence"), a daily fine of
collected in the amount of 1 real for
one and a half real.
the incurred expenses of the town in
the construction of roads, repair of compelled to work on public works, such
bridges, or the improvement of as building roads, bridges, and other
public buildings. infrastructure. The system was used to
provide a cheap and readily available
Caja de comunidad was a tax collected
source of labor for the colonial
during the Spanish colonial period in the
government, while also providing a
Philippines. It was a tax of one real imposed
means of enforcing discipline and
on each household in a town or community,
control over the indigenous population.
intended to support the expenses incurred
The term "Polo y Servicio" comes from
in constructing and maintaining public
two Spanish words, "polo" meaning
infrastructure such as roads, bridges, and
"work" and "servicio" meaning "service".
public buildings. The tax was typically
While the system was originally intended
collected annually and the funds were
to be a temporary form of labor, it
managed by the local government or
eventually became institutionalized and
community leaders to support the needs of
led to widespread abuse and
the town or community. This tax was an
exploitation. Many indigenous people
essential source of funding for the
were forced to work long hours in
development of public infrastructure and
difficult conditions, and there were few
 protections or rights available to them. Filipino colonial troops to pacify the
Despite being officially abolished in the rebels. The rebels were eventually
18th century, the legacy of the Polo y pardoned and the Philippine tax
Servicio system continues to be felt in system reformed.
many former Spanish colonies today.

REVOLTS AGAINST THE SUMUROY'S REVOLT (1649-1650)

TRIBUTE  In the town of Palapag today in

Northern Samar, Agustin Sumuroy,
During the Spanish colonial period in the a Waray, and some of his followers
Philippines, the Spanish authorities imposed rose in arms on June 1, 1649 over
various forms of taxation on the local the polo y servicio or forced labor
population, including the tribute and other system being undertaken in Samar.
types of taxes. These taxes were a major This is known as the Sumuroy
source of revenue for the colonial Revolt, named after Agustin
government, but they were also a source of Sumuroy.
resentment and opposition among the
Filipino people. As a result, there were The government in Manila directed
several revolts and uprisings against the that all natives subject to the polo
implementation of taxes by the Spanish are not to be sent to places distant
authorities. These revolts were often driven from their hometowns to do their
by a sense of injustice and oppression, as forced labor. However, under orders
well as a desire for greater autonomy and of the various town alcaldes, or
independence from colonial rule. The mayors, The Waray were being sent
revolts played a significant role in the to the shipyards of Cavite to do their
Philippines' struggle for independence, and polo y servicio, which sparked the
they continue to be remembered as revolt. The local parish priest of
important events in the country's history. Palapag was murdered and the
revolt eventually spread to
There are several revolts that are against Mindanao, Bicol and the rest of the
the implementation of tax by the Spanish Visayas, especially in places such
Authorities. as Cebu, Masbate, Camiguin,
Zamboanga, Albay, Camarines and
CAGAYAN AND DINGRAS REVOLTS
parts of northern Mindanao, such as
(1589)
Surigao. A rebel government was
 The Cagayan and Dingras Revolts successfully established in the
Against the Tribute occurred on mountains of Samar.
Luzon in the present-day provinces
The defeat, capture and execution of
of Cagayan and Ilocos Norte in
Sumuroy in June 1650 delivered a
1589. Ilocanos, Ibanags and other
big setback to the revolt. His trusted
Filipinos revolted against alleged
co conspirator David Dula sustained
abuses by the tax collectors,
the quest for freedom with greater
including the collection of high taxes.
vigor but in one of a fierce battles
It began when six tax collectors who
several years later, he was
had arrived from Vigan were killed
wounded, captured and later
by the natives. Governor-General
executed in Palapag, Northern
Santiago de Vera sent Spanish and
 Samar by the Spaniards together same condition as in Pampanga, he
with his seven key lieutenants. led the people in Pangasinan to take
up arms against the Spaniards. It
MANIAGO'S REVOLT (1660-1661)
spread like wild fire in Pangasinan.
 The Maniago Revolt was an uprising Because of his success, he
in Pampanga during the 1660s proclaimed himself King of
named after its leader, Francisco Pangasinan.
Maniago. During that time,
Pampanga drew most of the
attention from the Spanish religious
orders because of its relative wealth. THE TAX REFORM OF 1884
They also bore the burden of more
The Tax Reform of 1884, also known as the
tribute, forced labor, and rice
Maura Law, was a significant tax reform
exploitation. They were made to
measure implemented during the Spanish
work for eight months under unfair
colonial period in the Philippines. The
conditions and were not paid for
reform aimed to modernize and rationalize
their labor and for the rice purchased
the tax system in the country, which had
from them. Their patience was put to
been characterized by a complex system of
the limit and they signified their
taxes and fees that were difficult to
intention to revolt by setting their
administer and enforce. The reform included
campsite on fire. The fight soon
changes to the tribute system, which had
began and because the Spaniards
been a source of resentment and opposition
were busy fighting against the
among the Filipino people. It also introduced
Dutch, they were badly depleted by
new taxes, such as the cedula personal or
the Kapampangans. The Maniago
personal identity tax, which was a direct tax
revolt was the start of a much bigger
on individuals based on their income or
and even bloodier revolt in
property. The tax reform of 1884 was an
Pangasinan. This battle was led by a
important step towards the modernization of
man named Andres Malong who had
the Philippine economy, but it also sparked
heeded the call of Maniago to revolt
widespread protests and opposition among
against the Spaniards.
the local population, who saw it as a
MALONG'S REVOLT (1660-1661) continuation of Spanish colonial oppression
and exploitation. Despite the opposition, the
 Andres Malong was the maestro de tax reform remained in place until the end of
campo of Binalatongan, now San the Spanish colonial period in 1898.
Carlos City, Pangasinan in the
1660s. He assisted many Spaniards One of the good reforms which Spain
in governing different towns in introduced in the 19th century was the Tax
Pangasinan, and as such, had Reform o 1884, as provided by the Royal
learned and was trained to use force Decree on March 6, 1884, this tax reform
and cruelty. He hoped of being the contained two important provisions.
King of the province, however, set
1. Abolition of the hated Tribute and its
this plan aside when a war, led by
replacement of Cedula Tax and;
Francisco Maniago, broke out in
2. Reduction of the 40-day annual
Pampanga. Malong started his
forced labor (polo) to 15 days.
campaign in a small barangay called
Malunguey, but failed. Having the CEDULA PERSONALES
  Cedulas were first issued based on importance of taxes in financing public
the Royal Decree on March 6, 1884. goods and services. Moving forward,
All men and women residents of the policymakers must continue to prioritize the
island- Spaniards, foreigners, and design of a tax system that promotes
natives- who were over 18 years old economic growth, fairness, and social
were required to obtain a cedula. welfare while mitigating the negative effects
The only exceptions were the of taxation on the economy and society as a
Chinese, who paid another poll tax, whole.
the remontados d infieles,that were
not subject to local administration, TAXATION DURING THE COMMONWEALTH
and the natives and colonist of the PERIOD
archipelago of Jolo and of the The introduced tax structure was an
islands of Balabac and Palawan. improvement of the earlier system introduced
All in all, there were 16 different by the Americans, but still remained
classes of cedulas. Originally, there inequitable. The lower class still felt the bulk of
were 9 classes taxed, the rates of the burden of taxation, while the upper class,
Taxes ranged from 1.50 to 25 the landed elite or the people in political
Pesos, and a tenth, grantis, for positions, were able to maneuver the situation
priest, soldiers and privileged that would benefits them more. The agriculture
classes. sector was still taxed low to promote, but there
In conclusion, the imposition of various was no incentive for industrial investment to
taxes during the Spanish period in the take root and develop
Philippines played a significant role in
Finally, a common character of taxation during
financing the public sector activities
the American occupation in the Philippines was
necessary for the development of the
not used to diversity the economy or direct
country. Taxation has always been an
essential part of public finance as it provides economic development as some sectors still
the government with the means to produce carried the disproportionate share of the tax
social programs, maintain national defense, burden.
and ensure public safety. Moreover, it As World War II reached the Philippine shores,
enables the government to make collective
economic activity was put to a stop and the
choices and redistribute resources
Philippines bowed to a new set of
effectively through the use of majority rule.
administrators, the Japanese. The Japanese
Therefore, understanding the tax system's
structure and the challenges that arise from military administration in the Philippines during
the separation of spending and taxing is World War II immediately continued the system
crucial for policymakers to design a fair and of tax collection introduced during the
efficient tax system that benefits all Commonwealth, but exempted the articles
members of society.
belonging to the Japanese armed forces.
Overall, taxation is a complex and Foreign trade fell and the main sources of
challenging topic that requires careful taxation came from amusements,
analysis of the trade-offs between equity manufactures, professions, and business
and efficiency. The history of taxation in the licenses. As the war raged, tax collection was a
Philippines during the Spanish period difficult task and additional incomes of the
provides valuable insights into the government were derived from the sales of the
National Sweepstakes and sale of government Its purpose was to reduce levies on
bonds. manufactured and semi-manufactured goods
and to eliminate duties on most raw materials
The expenditure of the Japanese military
government grew greatly, and they issued New sources of tax were introduced:
military notes in order to cover the cost of the
-Income tax (1914)
war.
-Inheritance Tax (1919)
TAXATION UNDER AMERICANS
-National Lottery (1932)
Philippine Taxation under American Period
(1898-1935)

1898-1903: Americans followed the Spanish

system of taxation.

-The urbana which is a tax on the annual rental

value of an urban real estate was replaced
known as land tax that charge both urban and
rural real estate

- July 2, 1904: Bureau of Internal Revenue (BIR)

was created through the passage of
Reorganization Act No. 1189

- August 1, 1904: the BIR was formally organized

and made operational.

The bureau is mandated by law to assess and

collect all national internal revenue taxes, fees,
and charges

1904: The Internal Revenue Law of 1904

licensed and excise taxes, taxes on banks, doc.

Stamp taxes, cedula, taxes on insurance
company, forest products, mining concessions,
taxes on business, occupational licenses

1907: Changes in cedula and industia tax

The cedula under the new law went through

changes as the rate was fixed per adult male.
Some places were authorized to double the fee
for the cedula. The industria tax was charged

October 3, 1913: Underwood-Simmons Tariff

Act U.S Pres. Woodrow Wilson Governor-
General Francis Burton Harrison