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Unit 5: Social, Political, Economic and Cultural Issues

in Philippine Society

WEEK 13: Political Issue: Evolution of the Philippine

Constitution

Learning Outcomes:
1. Trace the evolution of the Philippine Constitution.
2. Explain the implication of a possible constitutional change
in the changing times.

Concept Digest
What is a constitution?

Is a set of fundamental principles or established precedents

according to which a state or other organization is governed,
thus, the word itself means to be a part of the whole. The
coming together of distinct entities into one group, with the
same principles and ideals. These principles define the nature
and extent of government.

The Constitution of the Philippines, the supreme law of the

Republic of the Philippines, has been in effect since 1987.
There are only three other constitutions that have effectively
governed the country: the 1935 Commonwealth Constitution, the
1973 Constitution, and the 1986 Freedom Constitution. However,
there were earlier constitutions attempted by Filipinos in the
struggle to break free from the colonial yoke.

1897: Constitution of Biak-na-Bato

The Constitution of Biak-na-Bato was the provisionary

Constitution of the Philippine Republic during the Philippine
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Revolution and was promulgated by the Philippine Revolutionary

Government on November 1, 1897. This constitution was borrowed
from Cuba and written by Isabelo Artacho and Felix Ferrer in
Spanish, and later on, translated into Tagalog.

The organs of the government under this Constitution were:

a. Supreme Council, which was vested with the power of
the Republic, headed by the president and four
departmental secretaries: the interior, foreign affairs,
treasury and war.
b. The Consejo Supremo de Gracia Y Justicia (Supreme Council
of Grace and Justice)which was given the authority to
make decisions and affirm or disprove sentences rendered
by courts and to dictate rules for the administration of
justice.
c. Asamblea de Representantes (Assembly of
Representatives) which was to be convened after
the revolution to create a new Constitution and to elect
a New Council of Government and representatives of the
people.

The Constitution of the Biak-na-Bato was never fully

implemented, since a truce, the Pact of Biak-na-Bato, was signed
between the Spanish and the Philippine Revolutionary Army.

Primary Source: Preamble of the Biak-na-Bato

“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 24th 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 Biak-na-Bato, Nov. 1st. 1897, unanimously adopt the following
articles for the Constitution of the state.”
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1899: Malolos Constitution

After the signing of the truce, the Filipino revolutionary

leaders accepted a payment from Spain and went to exile in Hong
Kong. Upon the defeat of the Spanish to the Americans in the
Battle of Manila Bay on May 1, 188, the United States Navy
transported Aguinaldo back to the Philippines. The newly
reformed Philippine revolutionary forces reverted to the control
of Aguinaldo, and the Philippine Declaration of Independence
was issued on June 12, 1898, together with several decrees that
formed the First Philippine Republic. The Malolos Congress was
elected, which a commission to draw up a draft constitution on
September 17, 1898, which was composed of wealthy and educated
men.
The document that they come up with, approved by the Congress
on 29 November 1898, and promulgated by Aguinaldo on 21 January
1899 was titled “The Political Constitution of 1899”, and
written in Spanish. The Constitution has 39 articles divided
into 14 titles, with eight articles of transitory provisions
and a final additional article. The document was patterned after
the Spanish Constitution of 1812, with influences from the
charters of Belgium, Mexico, Brazil, Nicaragua, Costa Rica, and
Guatemala, and the French Constitution of 1793. According to
Felipe Calderon, main author of the constitution, these
countries were studied because they shared similar social,
political, ethnological, and governance conditions with the
Philippines. Prior constitutional projects in the Philippines
also influenced the Malolos Constitution, namely, the Kartilya
and the Sanggunian-Hukuman,the charter of laws and morals of
the Katipunan written by Emilio Jacinto in 1896; the Biak-na-
Bato Constitution of 1897 planned by Isabelo Artacho; Mabini’s
Constitutional Program of the Republic of 1898; the provisional
constitution of Mariano Ponce in 1898 that followed the Spanish
constitutions; and the autonomy projects of Paterno in 1898.
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Primary Source: Preamble of the Political Constitution of

1899
We, the Representatives of the Filipino People, legally
convened to establish justice, provide for the common defense,
promote the general welfare and ensure the blessings of liberty,
imploring the aid of the Sovereign Lawgiver of the Universe in
order to obtain these objectives, have voted, decreed and
approved the following political constitution.

As a direct challenge to colonial authorities of the Spanish

empire, the sovereignty was retroverted to the people, a legal
principle underlying the Philippine Revolution. The people
delegated governmental functions to civil servants while they
retained actual sovereignty. The 27 articles of Title IV detail
the natural rights and popular sovereignty of Filipinos, the
enumeration of which does not imply the prohibition of any other
rights not expressly stated. Title III, Article V also declares
that the State recognizes the freedom and equality of all beliefs,
as well as the separation of Church and State. These are direct
reactions to features of the Spanish government in the Philippines,
where the friars were dominant agents of the State.

The form of government, according to Title II, Article 4 is to

be popular, representative, alternative and responsible, and shall
exercise three distinct powers – legislative, executive and
judicial. The legislative power was vested in a unicameral body
called the Assembly of Representatives, members of which are
elected for terms of four years. Secretaries of the government
were given seats in the assembly, which meet annually for a period
of at least three months. Bills could be introduced either by the
President or by a member of the assembly. Some powers not
legislative in nature were also given to the body, such as the
right of impeaching the president, cabinet members, the chief
justice of the Supreme Court, and the solicitor-general. A
permanent commission of seven, elected by the assembly, and granted
specific powers by the constitution was to sit during the intervals
between sessions of the assembly.
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Executive power was vested in the president, and elected by a

constituent assembly of the Assembly of Representatives and
special representatives. The president will serve a term of four
years without re-election. There was no vice president, and in
case of a vacancy, a president was to be selected by the
constituent assembly.
The 1899 Malolos Constitution was never enforced due to the
ongoing war. The Philippines was effectively a territory of the
United States upon the signing of the Treaty of Paris between Spain
and the United States, transferring sovereignty of the Philippines
on 10 December 1898.

1935: The Commonwealth Constitution

The Commonwealth Constitution was crafted to meet the approval

of the United States to live up to its promise to grant
independence to the Philippines. Right after the signing of the
Treaty of Paris in Washington D.C in 1898 that ceded the
Philippines to the US paying the amount of $20, 000, 000 to Spain
in the process, and the eruption of Filipino-American War in 1899,
our country was placed under a military government until 1901 with
the passing of the Spooner Amendment, putting an end to the
military rule in the Philippines and replacing it with a civil
government with William H. Taft as the first civil governor. The
ratification of the Philippine Bill of 1902, which called for the
creation of a lower legislative branch composed of elected Filipino
legislators, and the Jones Law in August 1916 gave the Filipinos
the opportunity to govern themselves better. The First Philippine
Assembly, which convened on October 16, 1907, was composed of
educated Filipinos from illustrious clans such as Sergio Osmeña
and Manuel L. Quezon, who revived the issue of immediate
independence for the Filipinos and this was expressed by sending
political missions to the US Congress.

Controversy divided the Philippine legislature with the debate

on the acceptance or rejection of the Hare-Hawes-Cutting Bill
brought home by Osmeña-Roxas mission from the US Congress in 1931,
which provided for a 10-year transition period before the granting
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of Philippine independence. The passage of the independence bill

resulted in the splitting of the Democrata Party and Nacionalista
Party into two factions; the Pros and Antis. Majority in the
legislature led by Quezon and Recto rejected the said bill, thereby
composing the Antis, while the Pros became the Minority under
Osmena, Roxas and others.

On October 17, 1933, Quezon and others triumphed in this battle

as the Philippine legislature rejected the bill. Quezon eventually
brought in from the United States the Tydings-McDuffie Act (Public
Law 73-127) authored by Sen. Millard Tydings and Rep. John
McDuffie, a slightly amended version of the Hare-Hawes-Cutting
bill signed by President Franklin Roosevelt on March 24, 1934. The
bill set July 4 after the tenth year of the commonwealth as date
of Philippine independence. This was accepted by the Philippine
Legislature on May 1, 1934.

The organization of constitutional Convention that would draw

up the fundamental law of the land based on the American model was
one of the salient provisions of the Tydings-McDuffie Act.
Delegates to the convention were subsequently elected in 1934. In
the first meeting held on July 30 at the session of the House of
Representatives, Claro M. Recto was unanimously elected as its
President.

Salient features of the 1935 Constitution include the following:

a bicameral legislature composed of a senate and House of
Representatives. The President is to be elected to a four-year
term together with the Vice-President without re-election; rights
of suffrage by male citizens of the Philippines who are twenty-
one years of age or over and are able to read and write; extension
of the right of suffrage to women within two years after the
adoption of the constitution.

The draft of the constitution was approved by the convention on

February 8, 1935 and ratified by Pres. Roosevelt in Washington D.C
on March 25, 1935. Elections were held in September 1935, Manuel
L. Quezon was elected as the president of the Commonwealth. The
1935 Constitution provided the legal basis of the Commonwealth
Government which was considered a transition government before the
granting of the Philippine independence with American-inspired
constitution; the Philippine government would eventually pattern
its government system after American government. It has been said
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that the 1935 Constitution was the best-written Philippine charter

ever.

This Constitution created the Commonwealth of the Philippines,

an administrative body that governed the country from 1935 to 1946.
It is a transitional administration to prepare the country toward
its full achievement of independence. It originally provided for
a unicameral National Assembly with a president and vice president.
It was amended in 1940 to have a bicameral Congress composed of a
Senate and a House of Representatives, as well as the creation of
an independent electoral commission, and limited the term of office
of the president and vice president to four years, with one re-
election. Rights to suffrage were originally afforded to male
citizens of the Philippines who are twenty-one years of age or
over and are able to read and write; this was later on extended to
women within two years after the adoption of the constitution.

The draft of the constitution was approved by the

constitutional convention of February 8, 1935, and ratified by
then US President Franklin B. Roosevelt on March 25 1935. Elections
were held in September 1935 and Manuel L. Quezon was elected
President of the Commonwealth.
The Commonwealth was briefly interrupted by the events of the
World War II, with the Japanese occupying the Philippines.
Afterward, upon liberation, the Philippines was declared an
independent republic on Julu 4, 1946.

Primary Source: Preamble of the 1935 Commonwealth

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 régime of justice,
liberty, and democracy, do ordain and promulgate this
Constitution.
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1973: Constitutional Authoritarianism

Constitutional Authoritarianism was enforced during the Martial

Law era. This was supposed to introduce a parliamentary-style of
government. The president was to be elected as the symbolic and
ceremonial head of the state. Executive power was relegated to the
Prime Minister.

Through Proclamation No.1081, on September 21, 1972, President

Ferdinand Marcos placed the entire country under martial law.
Martial law was declared in the country because of violence of the
démonstrations, disruption of classes in Manila, clashes of
students between the students and officers of the law. Through a
convention, the proposed 1973 constitution was approved on
November 29, 1972. In the constitution, it was supposed to
introduce a parliamentary- style government, which was vested in
a Unicameral National Assembly, with members being elected to 6
year term. The president would serve a six-year term and could be
re- elected to an unlimited number of term. The president was to
be elected as the symbolic and ceremonial head of state chosen
from members of National Assembly. Executive power was relegated
to the Prime Minister, who was also the head of the government and
Commander-in-Chief of the Armed Forces. The prime minister was
also elected for National Assembly.

President Marcos issued the Presidential Decree No. 73 which

supposed to ratify or reject the proposed constitution on November
30, 1973 through plebiscite. Instead of plebiscite, Citizen
Assemblies were held from January 10-15, 1973, where the citizens,
coming together and voting by hand, decided on whether to ratify
the constitution, suspend the covering of the Interim National
Assembly, continue martial law, and play a moratorium on elections
for a period of at least several years. On January 17, 1973,
President Marcos issued a proclamation announcing that the
proposed constitution had been ratified by an overwhelming vote of
the members of the highly irregular Citizen Assemblies.

The constitution was amended several times. In 1976, citizen

assemblies once again decided to allow the continuation of Martial
Law as well as the approved amendments: president to also become
the prime minister and to continue to exercise legislative powers
until Martial law was lifted.
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In 1981, the parliamentary system was formally modified to a

French-style, semi-presidential where executive power was restored
to the president. After all the amendments introduced, the 1973
Constitution was merely a way for the President to keep executive
powers, abolish the senate and by any means, never acted as a
parliamentary system, instead functioned as an authoritarian
presidential system.

The situation in the 1980s had been very turbulent. As Marcos

amassed power, discontent has also been burgeoning. August, 1983,
Benigno Aquino Jr., opposition leader regarded as the most credible
alternative to President Marcos, was assassinated while under,
military escort immediately after his return from exile in the
United States. There was a suspicion that the orders to assassinate
Aquino came from the top level;s of the government and the
military. This event cause the coming together of the non-violent
opposition to the Marcos authoritarian regime. Marcos was the force
to hold “snap” elections a year early, and said elections were
marred by widespread fraud. Marcos declared himself winner,
despite international condemnation and nationwide protests. A
small group of military rebels attempted to stage a coup, but
failed; however, this triggered what came to be known as the EDSA
People Power Revolution of 1896, as people from all walks of life
spilled onto the streets. Under pressure from the United States of
America, who used to support Marcos and his martial law, the Marcos
family fled into exile. His opponent in the snap elections, Benigno
Aquino Jr.’s widow, Corazon Aquino, was installed as president on
25 February 1896.

1987 Constitution

President Corazon Aquino’s government deduced to make

constitution to that, accord to the president herself, should be
“truly reflective of the aspirations and ideals of the Filipino
people.”

In March 1986, President Aquino proclaimed a transitional

constitution called, Freedom Constitution, maintained many
provisions of the old one, including in rewritten form the
presidential right to rule by decree.
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In 1986, a constitutional convention was created, composed of

48 members appointed by President Aquino. The convention drew up
a permanent constitution, largely restoring the set-up abolished
by Marcos in 1972, but with new ways to keep the president in
check, a reaction to the experience of Marcos rule. The new
constitution was officially adopted on 2 February 1987.

The constitution begins with a preamble, and eighteen self-

contained articles. It established the Philippines as a
“democratic republican State” where “sovereignty resides in the
people and all government authority emanates from them.” It
allocates governmental powers among the executive, legislative and
judicial branches of the government.

The executive branch is headed by the president and his

cabinet, whom he appoints. The president is the head of the state
and the chief executive, but his power is listed by significant
checks form the other co-equal branches of government, especially
during times of emergency. In cases of national emergency, the
president may still declare martial law, but to longer than a
period of sixty days, Congress, through a majority vote, can revoke
this decision, or extended it for a period that they determine.
The Supreme Court may also review the declaration of martial law
and decide if there were sufficient justifying facts for the act.
The president and vice president are elected at large by a direct
vote, serving a single six-year term.

The legislative power resides in a Congress divided into two

Houses: the Senate and the House of Representatives. The 24
senators are elected at large by popular vote, and can serve no
more than two consecutive six-year terms.

The House is composed of district representatives

representing a particular geographic area and make up around 80%
of the total number of representatives. There are 234 legislative
districts in the Philippines that elect their representatives to
serve three-year terms. The 1987 Constitution created a party-list
system to provide spaces for the participation of under-
represented community sectors or groups. Party-list
representatives may fill ip not more than 20% of the seats in the
House.
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The Philippine Court system is vested with the power of the

judiciary, and is composed of a Supreme Court and lower courts as
created by law. The Supreme Court is a 15-member court appointed
by the president without the need to be confirmed by Congress. The
appointment of the president makes, however, is limited to a list
of nominees provided by a constitutionally specified Judicial and
Bar Council. The Supreme Court Justices may hear, on appeal, any
cases dealing with the constitutionality of any law, treaty, or
decree of the government, cases where the penalty is sufficiently
grave. Ot may also exercise original jurisdiction over cases
involving government or international officials. The Supreme Court
also is charged with overseeing the functioning and administration
of the lower courts and their personnel.

The Constitution also established three independent

Constitutional Commissions, namely: the Civil Service Commission,
a central agency in charge of government personnel; the Commission
on Elections, mandated to enforce and administer all election laws
and regulations; and the Commission on Audit, which examines all
funds, transactions, and property accounts of the government and
its agencies.

To promote the ethical and lawful conduct of the government,

the Office of the Ombudsman was created to investigate complaints
that pertain to public corruption, unlawful behavior of public
officials, and the public misconduct. The Ombudsman can charge
public officials before the Sandiganbayan, a special court created
for this purpose.

Only the House of Representatives can initiate the

impeachment of the president, members of the Supreme Court and
other constitutionally protected public officials such as the
Ombudsman. The Senate will then try the impeachment case. This is
another safeguard to promote moral and ethical conduct in the
government.

Primary Source: Preamble of the 1987 Constitution

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
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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.

Attempts to Amend or Change the 1987 Constitution

The 1987 Constitution provided for three methods by which the

Constitution can be amended, all requiring ratification by a
majority vote in a national referendum. These methods were
Constituent Assemble, Constitutional Convention, and People’s
Initiative. Using these modes, there were efforts to amend or
change the 1987 Constitution starting with the presidency of Fidel
V. Ramos who succeeded Corazon Aquino. The first attempt was in
1995, when the Secretary of National Security Council Jose Almonte
drafted a constitution, but it was exposed to the media and itnever
prospered. The second happened in 1997, when a group called PIRMA
hoped to gather signatures from voters to change the constitution
through a people’s initiative. Many were against this, including
then Senator Miriam Defensor-Santiago, who brought the issue to
court and won – with the Supreme Court judging that a people’s
initiative cannot push through without an enabling law.
The succeeding president, Joseph Ejercito Estrada, formed a
study commission to investigate the issues surrounding charter
change focusing on the economic and judiciary provisions of the
Constitution. This effort was also blocked by different entities.
After President Estrada was replaced by another People Power and
succeeded by his Vice President, Gloria Macapagal Arroyo, then
House Speaker Jose De Venecia endorsed constitutional change
through a Constituent Assembly, which entails two-thirds vote of
the House to propose amendments or revision to the Constitution.
This initiative was also not successful since the term of President
Arroyo was mired in controversy and scandal, including the
possibility of Arroyo extending her term as president, which the
Constitution does not allow.
The administration of the succeeding Presdent Benigno Aquino
III had no marked interest in charter change, except those
emanating from different members of Congress, including the
Speaker of the House, Feliciano Belmonte, Jr. who attempted to
introduce amendments to the Constitution that concern economic
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provisions that aim toward liberalization. This effort did not see
the light of day.
In the upsurge of populism,President Rodrigo Duterte won the
2016 presidential elections in a campaign centering on law and
order, proposing to reduce crime by killing tens of thousands of
criminals. He is also a known advocate of federalism, a compound
mode of government combining a central or federal government with
regional governments in a single political system. This advocacy
is in part an influence of his background, being a local leader in
Mindanao that has been mired in poverty and violence for decades.
On 7 December 2016, President Duterte signed an executive order
creating a consultative committee to review the 1987 Constitution.
Until this time the 1987 Philippine Constitution remain the
fundamental principle of the Philippines.
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WEEK 14: Economic Issue: Evolution of Taxation in the

Philippines

Learning Outcomes:
1. Show through a graphic organizer the evolution of taxation in
the Philippine.
2. Explain the implications of the TRAIN law in the lives of the
common people.

Concept Digest

Evolution of Taxation

In today’s world, taxation is a reality that all citizens must

contend 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 experience.

Taxation in Spanish Government

The Spaniards imposed the payment of tributos (tributes) or the

obligation to provide labor services to the datus in some early
Filipino communities in the Philippines may resemble taxation, it
is 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 has 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 disperse nature of the
settlements, which they solved by introducing the system of
reduccion by creating pueblos, where Filipinos were gathered and
awarded plots of lands to till. Later on, the settlements will be
handled by econmederos who received rewards from the Spanish crown
for their services. Exempted from payment of tributes were the
principales: alcaldes, gobernadores, cabezas de barangay,
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soldiers, members of the civil guard, government officials, and

vagrants.

Toward the end of the 16th 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 will be loafed 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
form the Spain will be needed through the situado real delivered
form the Mexican treasury to the Philippines through the galleon.
This subsidy stopped as Mexico became independent in 1820.

In 1884, the payment of tribute was put to a stop and was replace
by a poll txt collected through a certificate of identification
called cédula personal. This is required form every resident and
must be carried while traveling. The payment of cedula is by person
and by family. Payment of cedilla is progressive ad according to
income categories. This system, however was head burden for the
peasants and was easy for the wealth. But because of this, the
revenue collection greatly increase and became the main source of
government income.

In 1878, two direct taxes were added. 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
revenues.

The colonial government also gains income from monopolies, such as

the sale of stamped paper, sale of liquor, cockpits and opium, but
the biggest of the state monopolies was tobacco, which began in1781
and halted in 1882. 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 contributes to the treasury
of Spain.

Forced labor was a character of Spanish colonial taxation in the

Philippines, and was require from the Filipinos. Through the polo
system, male Filipinos were obliged to serve, which resulted to an
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increase in death rate that led to a decrease in population in the

17th century. This changed later on, as polos and servicos became
lighter. The polos will be called prestacíon personal (personal
services) by the second half of the 19th 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 and local elites. Taxation appeared
progressive but the disparity between the less taxed principales
and the heavily taxed peasants made the rich richer and the poor
poorer.

Primary Source: Mariano Herbosa Writes to Rizal About Taxes

Source: Mariano Herbosa to Jose Rizal, Calamba, 29 August 1886.

Letter Between Rizal and Fmily Member (Manila: National Heroes
Commission, 1946), 239-241.

“The tax! With regard to your question on this, the answer is very
long as it is the cause of the prevailing misery here. What I can
write you will be only one-half of the story and even Dumas,
senior, cannot exhaust the subject, Nevertheless, I’ll tr to write
what I can, though I may not be able to give a complete story, you
may atlas know half of it.

“Here, there are many kinds of taxes. What they call irrigated
rice land, even if it has no water, must pay a tax pf 50 cavanes
of palay and land with six canaves of seed pay 5 pesos in cash.
The land they call dry land that is planted to sugar cane, maize,
and others pay different rates. Even if the agreed amount is 30
pesos for land which six cavanes of seed, if they see that the
harvest is goof, the increase the tax, but they don’t decrease it,
if the harvest is poor. There is land whose tax is 25 pesos or 20
pesos, according to custom.

“The most troublesome are the residential lots in the town. There
is no fixed rile that is followed, only their whim. Hence, even if
it is only one spa in size, of a stone wall is added, 50 pesos
must be paid, the lowest being 20 pesos. But a nipa or corn house
pays only one peso for an area of ten fathoms square. Another
feature of this system is that on the day you accept the
conditions, the contract will be written which cannot be changed
for four years, but the tax is increased very year. For these
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reasons, for two years now the payment of tax is confused and
little by little the fear of the residents here of the word
“vacant” is being dispelled, which our ancestors had feared so
much. The result is bargaining, like they do in buying fish. It is
advisable to offer a low figure and payment can be postponed,
unlike before when people were very much afraid to pay after May.

“I’m looking for a recipe to send you, but I cannot find any,
because we don’t get a receipt overtime we pay. Anyway it is
value0less as it does not state the amount paid; it only says that
the tax for that year was paid, without stating whether it is five
centavos, twenty-five centavos, one hundred, or one thousand
pesos. The resident who ask or get the said receipt accept it with
closed eyes. The receipt has no signature in the place where the
amount paid ought to be, although it bears their name. Until now
I cannot comprehend why some are signed and others are not. This
is more or less what is happening here in the payment of the land
tax and it has been so for many years since I can remember.

“Besides this, the rates on the plants in the fields that are far
from the town, like the land in Pansol, are various. The tax on
the palay is separate from the tax on maize, mongo, or garlic.
There is no limit to this tax, for they fix it themselves. Since
July no one buys sugar and since June locusts are all over the
town and they are destroying palay and sugar cane, which is what
we regret here. The governor gave 50 pesos to pay the catchers of
locusts, but when they look them to the town hall they were paid
only 25 cents a cavan and a half; and it seems that the locusts
are not decreasing. According to the guess of the residents here
only 300 cavanes of locusts have been caught in this town. Many
still remain. Though the governor has not sent any more money, he
people have not stopped catching them.

Taxation under Americans

The Americans followed the Spanish system of taxation form 1898 to

1903, with 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
charged for coinage of money. Later on the urbana will 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.
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Land titling in the rural area was very disorderly because the
appraising of land value was influence by political and familial
factors. Tax evasion was prevalent, especially among elites.

The Internal Revenue Law of 1904 was passed. It prescribed ten

major sources of revenue: (1) license taxes on firms dealing in
alcoholic beverages and tobacco, (2) excise taxes on alcohol
beverages and tobacco products, (3) taxes on bank and banks, (4)
document stamp taxes, (5) the cedula, (6) taxes on insurance and
insurance companies, (7) taxes on forest products, (8) mining
concessions, (9) tax on business and manufacturing, and (10)
occupational licenses.

The rate of cedula was fixed per adult male, which resulted to a
great decline in revenues. In 1907, some provinces doubled the fee
for the cedula to support the construction and maintenance of
roads. The industria tax was levied on the business community and
became highly complex system that assigned certain tax to an
industrial or commercial activity according to their
profitability. The new Act also imposes a percentage tax on sales
payable quarterly.

In 1913, the Underwood-Simmons Tariff Act was passed resulting to

a reduction in the revenue of the government as export taxes levied
on sugar, tobacco, hemp and copra were lifted. 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.

In 1814, an income tax was introduce, 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 government revenues.

Taxation during the Commonwealth Period

New measure and legislation were introduced 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.
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In 1937, the cedula tax was abolished, but in 1940 a residence tax
was imposed on every citizen after 18 years old and on ever
corporation.

In 1939, the Commonwealth government drafted the National Internal

Revenue Code, introducing major changes of 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 progressive rate.

2. Personal exemptions were reduce.

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 replace 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 remained inequitable. The lower class

still felt the burden of taxation, while the upper class, were
able to maneuver the situation that will benefit them more. The
agriculture sector was still taxed low to promote growth, but there
was no incentive for industrial investment to take the root and
develop.

As World War II reached the Philippine shores, economic activity

was stopped as there was a new set of administrators, Japanese.
The Japanese military administration 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 sales of government bonds.
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Fiscal Policy from 1946 to Present

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 Americans was
opportunity to be taken advantage by the former colonial
administrators. 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
Stated advised the adoption of direct taxation but President Manuel
Roxas declined the proposal because it did not want to alienate
its allies in Congress.

During the time of President Elpidio Quirico through the

implementation of imports and exchange controls, economic growth
came. This policy allowed for the expansion of a viable
manufacturing sector that reduced the dependence on imports.
Further, higher corporate tax rates were also passes. Tax revenues
in 1953 increased twofold compared to 1948, the year when Quirino
first assumed presidency.

The period of the post-war republic also saw a rise in in

corruption. From1959-1968, Congress did not pass any tax
legislations despite important changes in the economy, and the
vested interests of Filipino businessmen in Congress will manifest
in many instances such as the rejection of taxes on imports.

Collection of taxes remained poor, tax structure is still

problematic, and much of public funds were lost to corruption,
which left the government incapable of funding projects geared
toward development.

Under Marcos authoritarian regime, the tax remained regressive. As

Corazon Aquino took the helm of the government after EDSA
Revolution, she reformed the tax system through the 1986 Tax Reform
Program. The aim was to improve the responsiveness of the tax
system, promote equity, and improve tax administration by
simplifying the tax system and promoting tax compliance.

Under the term of Aquino, value-added tax (VAT) was introduced,

with the following features;
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a. uniform rate of 10% on sale of domestic and imported goods and

services and zero percent on exports and foreign-currency
denominated sales;

b. 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
tac, broker’s tax, film lessors and distributor’s tax, excise tax
on solvent and matches, and excise tax on processed videotapes;

c. two percent tax on entities with annual sales or receipts of

less than 200,000 pesos;

d. adoption of tax credit method of calculating tax by subtracting

tax on inputs from tax on gross sales;

e. exemption of the sale of basic commodities such as agriculture

and marine food products in their original sate, price-regulated
petroleum products, and fertilizers; and

f. additional 20% tax on non-essential articles such jewelry,

perfumes, toilet waters, yacht and other vessels for pleasure and
sports.

The Ramos administration in 1997, ventured into its own tax reform
program through the Comprehensive Tax Reform Program which was
implemented to;
(1) make the tax system broad-based, simple and with reasonable
tax rates;
(2) minimized 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;
(4) rationalize the grant of tax incentives.

The VAT bases was also broadened in 1997 to include services,

through Republic Act 7716. The feature of the improved VAT law
were as follows:

a. Restored the VAT exemptions for all cooperatives (agricultural,

electric, credit or multi-purpose and others provided that the
share capital of each member does not exceed 15,000 pesos.
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b. Expanded the coverage of the term “simple processes” by

including broiling and roasting, effectively narrowing the tax
base for food products.

c. Expanded the coverage of the “original state” by including

molasses.

d. Exempted from the VAT are the following:

-Importation of meat
-Sale or importation of coal and natural gas in whatever form
or state
-Educational services rendered by private education
institutions duly accredited by the Commission on Higher
education (CHED)
-House and lot and other residential dwellings valued at 1
million pesos and below, subject to adjustment using the
Consumer Price Index (CPI)
-Lease of residential units with mostly rental per unit of not
more than 8,000 pesos, subject to adjustment using CPI
-Sale, importation, printing or publication of books and any
newspaper

President Joseph Estrada’s term in 1998 was too short to effect

change in the tax system. Gloria Macapagal-Arroyo who swept power
through another EDSA Revolution undertook increased government
spending without adjusting tax collections, which, resulted to
deficits form 2002-2004. In 2005, Expanded Value Added Tax (E-VAT)
was signed into law as Republic Act 9337. This extended VAT bases,
subjecting to VAT energy products such as coal and petroleum
products and electricity generation, transmission and
distribution. Select professional services were also taxed.

President Benigno Aquino III succeeded President Arroyo in 2010.

Republic Act 10351 was passed, and government revenues from alcohol
and tobacco excise taxes increased. The Sin Tax Reform was an
exemplar on how tax reform could impact social services.

Tax Reform for Acceleration and Inclusion (TRAIN LAW) under

President Rodrigo Duterte Administration

On December 19, 2017, the President signed into law Package 1 of

the Comprehensive Tax Reform Program also known as the Tax Reform
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for Acceleration and Inclusion (TRAIN) as Republic Act (RA) No.

109631. The law provides for the amendments to several provisions
of the National Internal Revenue Code of 1997 (NIRC of 1997) on
personal income taxation, passive income for both individuals and
corporations, estate tax, donor’s tax, value-added tax (VAT),
excise tax, documentary stamp tax (DST), and tax administration,
among others. It likewise introduced new taxes such as the excise
tax on cosmetic surgery and sugar-sweetened beverages.

The additional revenues that will be generated in the

implementation of the Act shall be used to fund the President’s
priority infrastructure and social programs that will ultimately
benefit the poor.

Highlights of the Reforms Under RA 109632

The following are the highlights of the reforms introduced by RA

10963 to the NIRC of 1997.

Personal Income Tax

The most popular part of the Train law is the reduction of personal
income tax of a majority of individual taxpayers. Prior to the
enactment of the new law, an individual employee or self-employed
taxpayer would normally have to pay income tax at the rate of 5%
to 32%, depending on one's bracket.

Under Train, an individual with a taxable income of P250,000 or

less will now be exempt from income tax. Those with a taxable
income of above P250,000 will be subject to the rate of 20% to 35%
effective 2018, and 15% to 35% effective 2023. Moreover, the
deductible 13th month pay and other benefits are now higher at
P90,000 compared to P82,000 under the old law.

Another innovation under Train is the option of self-employed

individuals and/or professionals whose gross sales or receipts do
not exceed P3,000,000 to avail of an 8% tax on gross sales or gross
receipts in excess of P250,000, in lieu of the graduated income
tax rates.

It is not being highlighted, however, that some items that were

previously deducted to arrive at taxable income had been removed
under Train. These are the personal exemption of P50,000,
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additional exemption of P25,000 per dependent child, and the

premium for health and hospitalization insurance of P2,400 per
year.

Estate Tax

The estate tax rate was also changed from 5% to 32% of the net
estate to a flat rate of 6%. Additionally, the following deductions
allowed in computing the net estate (to be subjected to estate
tax) were increased:

Donor’s tax

The donor’s tax rate was also amended to a single rate of 6%

regardless of the relationship between the donor and the donee. In
the old law, the rates of donor’s tax were 2% to 15% if the donor
and donee are related, and 30% if otherwise. However, the donation
of real property is now subject to Documentary Stamp Tax of P15
for every P1,000.

Value Added Tax

There are also amendments to VAT which lessen the burden of

taxpayers:
1. Increase of VAT threshold from P1,919,500 to P3,000,000
2. Starting 2019, the sale of drugs and medicines for diabetes,
high cholesterol, and hypertension will be exempt from VAT
3. Increase of VAT exemption for lease of a residential unit from
P12,800 to P15,000
4. Association dues, membership fees, and other assessments and
charges collected by homeowners associations and condominium
corporations are now expressly VAT exempt.
Increased taxes

Passive Income

Train imposes higher taxes on some passive incomes, including

interest income from dollar and other foreign currency deposits.

Excise Tax

Train imposes higher excise taxes on cigarettes, manufactured

oils (petroleum products), mineral products and automobiles.
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Non-essential services

Invasive cosmetic procedures directed solely towards improving,

altering, or enhancing the patient’s appearance is now subject
to excise tax of 5%.

PCSO winnings

Previously, PCSO winnings, regardless of amount, were exempt

from tax. Train subjects PCSO winnings to a 20% final
withholding tax if the amount is more than P10,000.

Simplified tax compliance

Apparently, the Philippine tax system is a very complicated one.

This was certainly considered by Congress when it enacted the
Train law. Consequently, Train introduces amendments which are
geared towards simpler tax compliance. Some of these amendments
are:

1. The Income Tax Returns shall not be more than 4 pages

2. The Tax Return for final and creditable withholding taxes
shall be filed quarterly instead of monthly
3. With regard to estate tax, the following measures were
adopted to simplify its computation and payment:
o In lieu of actual funeral expenses (up to P200,000) and
medical expenses (up to P500,000), Train increases the
standard deduction (wherein no substantiation is required)
from P1,000,000 to P5,000,000
o Notice of death is no longer required
o CPA certification is now required only if the gross estate
is above P5,000,000 (up from P2,000,000)
o The deadline for filing of estate tax return is now one year
from death (before, 6 months from death)
o Bank deposits left by the decedent may be withdrawn by the
heirs subject only to 6% withholding tax. Before a
certification from the BIR that estate tax has been paid was
required.
4. Beginning January 1, 2023, the filing of VAT Return and
payment of tax shall be done quarterly instead of monthly
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5. The BIR is required to act on application for VAT refund

within 90 days. Otherwise, the BIR official, agent or employee
will be criminally liable.
6. The Financial Statements of a taxpayer should be audited if
the gross annual sales, earnings, receipts or output exceed
P3,000,000 (up from P150,000).

With the enactment of the Train law, the government expects to

generate more revenues to fund its "Build, Build, Build”
projects and other programs. At the same time, the labor sector
is expected to be freed from the burden of outdated and
inequitable personal income tax. Hopefully, this benefit for the
workers can still be achieved despite the increase in prices of
some goods that they consume.
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WEEK 15: Social Issue: Agrarian Reform in the

Philippines

Learning Outcomes:
1. Discuss the evolution of the agrarian reform in the
Philippines.
2. Propose solutions to the agrarian issues in the Philippines.

Concept Digest

Policies on Agrarian Reform: Land Ownership in The Philippines

Under Spain

Agrarian Reform is the rectification of the whole system of

agriculture. It refers to the redistribution of lands, regardless
of crops or fruits produced to farmers and regular farm workers
who are landless, irrespective of tenurial arrangement and
economic status of the beneficiaries. Through genuine and
comprehensive agrarian reform, the Philippines would be able to
gain more from its agricultural potential and uplift the Filipinos
in the agricultural sector, who have been, for the longest time,
moored in poverty and discontent.

Landownership in the Philippines under Spain

When the Spaniards colonized the country, they brought with them
a system of pueblo agriculture were organized into a pueblo and
given land to cultivate. Families were not allowed to own their
land- the King of Spain owned the land, and Filipinos were assigned
to these lands to cultivate them, and they pay their colonial
tributes to the Spanish authorities in the form of agricultural
products.

Filipinos were not given the right to own land, and only
worked pay tributes to the encomiendero so that they may have a
share of the crops. The encomienda system was an unfair and
abusive system as “compras y vandalas” became the norm of the
Filipino farmer, they were made to sell their products or surrender
their product at very low price to encomienderos and resell this
at a profit.
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From encomienda system, the hacienda system developed in the

beginning of the 19th century. Hacienda system was developed as a
new form of ownership. In 1860s, Spain enacted a law ordering
landholder to register their landholdings, and only those who knew
benefitted from this. Lands were claimed and registered in their
people’s names, and may peasant families who were “assigned” to
the land in their earlier days of colonization were driven out, or
forced to come under the power of these people who claimed rights
to the land because they held a title. This is the primary reason
why revolts in the Philippines were oftentimes agrarian in nature.

Landownership in the Philippines under the Americans

The Americans were aware that the main cause of social unrest in
the Philippines is landlessness, and they attempted to put an end
to this. The Philippine Bill of 1902 provided regulations on the
disposal of public lands. The Philippine Commission also enacted
Act No. 496 or the Land Registration Act which introduced the
Torrens system to address the absence of earlier records of issued
land tiles and conduct accurate land surveys.

Landownership did not improve during the American period; in fact,

it even worsened, because there is no limit to the size of
landholding people can possess, and the accessibility of
possession was limited to those who can afford to buy, register
and acquire fixed property titles. This early land reform
propaganda was also implemented without support mechanic, - if a
landless peasant farmed received land, he will only receive land,
nothing more. Many were forced to return to tenancy, and wealthy
Filipino hacienderos purchased or forcefully took over lands form
farmers who cannot afford to pay their debts.

During the years of the Commonwealth government, the situations

further worsened, as peasant uprisings increased and landlord-
leant relationship became more disparate. President Quezon created
the National Rice and Corn Corporation (NARICC) to assign public
defenders to assist peasants in court battles for their rights to
the land, and the Court of Industrial Relations to exercise
jurisdiction over disagreements arising from landowner-tenant
relationship. The Homestead Program also continued, through the
National Land Settlement Administration (NLSA). Efforts toward
agrarian reform by the Commonwealth failed because of many problems
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such as budget allocation for the settlement program and widespread

peasant uprising.

Post-War Interventions toward Agrarian Reform

Rehabilitation and rebuilding after the war was focused on

providing solutions to the problems of the past. The
administration of President Roxas passed Republic Act No. 34 to
establish a 70-30 sharing arrangement between tenant and landlord,
respectively, and reduced the interest of landowners’ loans to
tenants at six percent or less. The government attempted to
redistribute hacienda lands.

Under the term pf President Elpidio Quirino, the Land Settlement

Development Corporation (LASEDECO) was established to accelerate
and expand the resettlement program for peasants. This agency later
on became the National Resettlement and Rehabilitation
Administration (NARRA) under the administration of President Ramon
Magsaysay.

Magsaysay saw the importance of pursuing genuine land reform.

Republic Act No. 1199 or the Agricultural Tenancy Act was passed
to govern the relationship between landholder and tenant farmers,
protecting the tenurial rights of tenants and enforce tenancy
practices. Through this law the Court of Agricultural Relations
was created in 1955 to improve tenancy security, fix land rentals
of tenanted farms and resolve land disputes filed by the landowners
and peasant organizations. The Agricultural Tenancy Commission was
also established to administer problems created by tenancy. The
Agricultural Credit and Cooperative Financing Administration
(ACCFA) was also created mainly to provide warehouse facilities
and assist farmers in marketing their products. The administration
spearheaded the establishment of the Agricultural and Industrial
Bank to provide easier terms in applying for homestead and other
farmlands.

Despite a more vigorous effort toward agrarian reform, the

situation for the farmers remained dire, since the government
lacked funds and provided inadequate support services for the
programs. The landed elite did not fully cooperate and criticized
the programs.
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A major stride in land reform arrived during the term of Disodado

Macapagal through the Agricultural Land Reform Code (Republic Act
No. 3884).

SEC. 2. Declaration of Policy.

It is the policy of the State:

(1) To establish owner-cultivatorship and the economic family-size
farm as the basis of Philippine agriculture and, as a consequence,
divert landlord capital in agriculture to industrial development;
(2) To achieve a dignified existence for the small farmers free
from pernicious institutional restraints and practices;
(3) To create a truly viable social and economic structure in
agriculture conducive to greater productivity and higher farm
incomes;
(4) To apply all labor laws equally and without discrimination to
both industrial and agricultural wage earners;
(5) To provide a more vigorous and systematic land resettlement
program and public land distribution; and
(6) To make the small farmers more independent, self-reliant and
responsible citizens, and a source of genuine strength in our
democratic society.

This Code abolished share tenancy in the Philippines and prescribe

a program to convert tenant-farmers to lessens and later on owner-
cultivators. Despite being one of the most comprehensive pieces of
land reform legit;action ever passed in the Philippines, Congress
did not make any effort to come up with a separate bill to fund
its implementation, despite the fact that it proved beneficial in
the provinces where it was pilot tested.

Agrarian Reform Efforts under Marcos

President Marcos declared martial law in 1972, enabling him to

essentially wipe out the landlord-dominated Congress. Through his
“technocrats”, he was able to expand executive power to start a
“fundamental restructuring” of government, including its efforts
in solving the deep structural pollens of the countryside.
Presidential Decree No. 27, or the Code of Agrarian Reform of the
Philippines, became the core of agrarian reform during Marcos
regime.
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Primary Source: Presidential Decree No. 27

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the
Constitution as Commander-in-Chief of all the Armed Forces of the
Philippines, and pursuant to Proclamation No. 1081, dated
September 21, 1972, and General Order No. 1 dated September 22,
1972, as amended do hereby decree and order the emancipation of
all tenant farmers as of this day, October 21, 1972:

This shall apply to tenant farmers of private agricultural lands

primarily devoted to rice and corn under a system of sharecrop or
lease-tenancy, whether classified as landed estate or not;

The tenant farmer, whether in land classified as landed estate or

not, shall be deemed owner of a portion constituting a family-size
farm of five (5) hectares if not irrigated and three (3) hectares
if irrigated;
In all cases, the landowner may retain an area of not more than
seven (7) hectares if such landowner is cultivating such area or
will now cultivate it;

For the purpose of determining the cost of the land to be

transferred to the tenant-farmer pursuant to this Decree, the value
of the land shall be equivalent to two and one-half (2 1/2) times
the average harvest of three normal crop years immediately
preceding the promulgation of this Decree;

The total cost of the land, including interest at the rate of six
(6) per centum per annum, shall be paid by the tenant in fifteen
(15) years of fifteen (15) equal annual amortizations; In case of
default, the amortization due shall be paid by the farmers’
cooperative in which the defaulting tenant-farmer is a member,
with the cooperative having a right of recourse against him;

The government shall guaranty such amortizations with shares of

stock in government owned and government-controlled corporations;

No title to the land owned by the tenant-farmers under this Decree

shall be actually issued to a tenant-farmer unless and until the
tenant-farmer has become a full-fledged member of a duly recognized
farmer’s cooperative;
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Title to land acquired pursuant to this Decree or the Land Reform

Program of the Government shall not be transferable except by
hereditary succession or to the Government in accordance with the
provisions of this Decree, the Code of Agrarian Reforms and other
existing laws and regulations;

The Department of Agrarian Reform through its Secretary is hereby

empowered to promulgate rules and regulations for the
implementation of this Decree.

Under the rice sled-sufficiency program “Masagana ’99”, farmers

were able to borrow money from bank and purchase three-hectare
plots of lands and agricultural inputs. However, the landlord’s
class still found ways to circumvent the law. Because only rice
lands were the focus of agrarian reform, some landlords only needed
to change crops to be exempted from the program. Land worked by
wage labor were also exempt from the program, so the landed elite
only had to evict their tenants and hired worked instead.
Landlessness increase, which made it all more difficult for the
program to succeed because landless peasants were excluded from
the program. Many other methods were employed by the elites to
find a way to maintain their power and dominance, which was
worsened by the corruption of Marcos and his cronies who were also
involved in the agricultural sector.

Post 1986- Agrarian Reform

President Corazon Aquino envisioned agrarian reform to be the

centerpiece of her administration’s social legislation which
proved difficult because she came from a family of wealthy and
landed clan that owns Hacienda Luisita.

In 1988, the Congress passed Republic Act No. 6657, or the

Comprehensive Agrarian Reform Law (CARL), which introduced the
program with the same name (Comprehensive Agrarian Reform Program
or CARP). It enabled the redistribution of agricultural lands to
tenant-farmers from landowners. CARP was limited because it
accomplished very little during the administration of Aquino for
the fact that the Congress was dominated y the landed elite who
was unwilling to fund the high compensation costs of the program.

Under the term of President Ramos, CARP implementation was speeded

in order to meet the ten-year time frame, despite limitations and
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constraints in funding, logistics, and participation of involved

sectors. To address the lacking funding and the dwindling time for
the implementation of CARP, Ramos signed the Republic Act No. 8532
in 1998 to amend CARL and extend the program to another ten years.

CARPER and the Future of Agrarian Reform in the Philippines

In 2009, President Arroyo signed the Republic Act No. 9700 or the
Comprehensive Agrarian Reform Program Extension with Reforms
(CARPER), the amendatory law that extended the deadline to five
more years (CARP expired in 2008).

From 2009-2014, CARPER has distributed a total of 1 million

hectares of land to 900,000 farmer beneficiaries. After 27 years
of land reform and two Aquino administrations, 500,000 hectares of
lands remained undistributed. The DAR and the Department of
Environment and Natural Resources (DENR) are the government
agencies mandated to fulfill CARP and CARPER, but the two agencies
have proved incapable of fully achieving the goal of agrarian
reform in the Philippines. The same problems have plagued its
implementation: the powerful landed elite, and the ineffectual
bureaucracy of the Philippine government. Until then two
challenges are surmounted, genuine agrarian reform in the
Philippines remained but a dream to Filipino farmers who have been
fighting for their right to landownership for centuries.

Reference:
Agricultural Land Reform Code of 1963 (Republic Act 3844).
https://www.officialgazette.gov.ph/1963/08/08/republic-act-no-
3844/
Decreeing the Emancipation of Tenants from the Soil (Presidential
Decree No. 27).
https://www.officialgazette.gov.ph/1972/10/21/presidential-
decree-no-27/