TAXATION DURING SPANISH COLONIZATION

Mandatory payments collected from individuals and corporations by a government entity to fund government activities

Taxes

• Is a term when a taxing authority, usually a government, imposes taxes.

• a government mechanism to raise funds, develop, and evolve through time.

Taxation

Refers to a form of economy where individuals rely on hunting, gathering, and basic agricultural practices to meet their basic needs for survival.

Subsistence Economy

HOW DOES THE ARRIVAL OF THE SPANIARDS ALTERED THIS SUBSISTENCE SYSTEM?

Imposed the payment of tributes or also known as “Tributos”

• payment of tributes

• The purpose is to generate resources to finance the maintenance of islands, such as salaries of government officials and expenses of the clergy.

• A general tax paid by the Filipinos to Spain which amounted to eight reales or one peso.

Tributos

• By creating pueblos (village or town)

• Filipinos were gathered and awarded plots of lands to till.

SYSTEM OF REDUCCSION

Required to pay the tribute were the:

(1) 16 to 60 years old

(2) Carpenters, bricklayers, blacksmiths, tailors, and shoemakers

(3) Town workers such as those in road construction, and those who are public in nature.

Other Means of Payment

1. Gold

2. Textile

3. Cotton

4. Rice

5. Chicken

6. Polo y servicio or forced labor

Exempted from the payment of the tribute were:

● Principals

● Alcaldes

● Governadors

● Cabezas de Barangay

● Soldiers

● Member of civil guard

● Government officials and vagrants

• 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 the population.

• Males were required to provide labor for 40 days a year (reduced to 15 days a year in 1884).

polo system

In 1878, two direct taxes were added and imposed on urban income.

● Urbana

● Industria

- is a tax on the annual rental value of the urban real estate.

Urbana

- is a tax on salaries, dividends, and profits.

Industria

• Identication of the residents.

• This is required from every resident and must be carried while traveling.

Cedula Personal

• 9th President of the Philippines

• Promised to study the tax structure and policy of the country (through the creation of a Tax Commission in 1959 by means of Republic 2211)

• From 1959 to 1968 congress did not pass any tax legislation.

• Indirect taxation still contributed to three-quarters of tax revenues.

• Omnibus Tax Law of 1969 did not increase the ratio of income tax to general tax revenue

DIOSDADO MACAPAGAL

• 15th President of the Philippines.

• He promised that no new taxes will be imposed and additional revenue would have to come from adjusting existing tax.

• The administration ventured into the adjustment of excise tax on liquor and cigarettes (Sin Tax Reform).

• The Republic Act 10351 was passed.

BENIGNO AQUINO III