Spanish Taxation in Philippine History
Spanish Taxation in Philippine History
MODULE
OVERVIEW
This chapter introduces the students to the governance of Spain in the Philippines.
Lesson 1 presents Marcelo H. Del Pilar's La Soberania Monacal en Filipinas (Monastic
Sovereignty in the Philippines) that analyzed the political, religious, and economic aspects
of friarchy or frialocracia in the Philippines during the late 19th century. Lesson 2 explains
the forms of taxes levied by the Spanish government on the Filipinos, and the revolts that
were carried out against these taxes and other forms of Spanish economic abuses.
Although the revolts were not successful, it still caught the attention of the Spanish
government that resulted to a tax reform in 1884. On the other hand, Lesson 3 discusses
the agrarian reform from the Spanish colonial Philippines to the present. The agrarian
agenda of each of the Philippine presidents are also discussed. Lesson 4 describes the
historical evolution of the Philippine Constitution from the 1897 Constitution of Biak-na-
Bato to the present constitution, the 1987 Philippine Constitution.
Taxation during the Spanish period was compulsory. All Spanish colonies in
America and the Philippines were required to pay taxes for two reasons: (1) as recognition
of Spain's sovereignty over the colonies, and (2) to defray the expenses of pacification
(the act of forcibly suppressing hostility within the colonies) and governance, thereafter.
Several colonial laws on taxation were made by the Real y Supremo Consejo de las Indias
(Royal and Supreme Council of the Indies) for the Spanish monarch. These laws were
embodied in the compilation of legislations related to the New World called the
Recopilacion de leyes de los reynos de las Indias. It was a four-volume collection of laws
relating to the Indies, which was published in Madrid in 1861. Taxes during the Spanish
period in the Philippines were the tribute, sanctorum, donativo, caja de communidad, and
servicio personal (Boncan, 2016).
1. Tributo was a general tax paid by the Filipinos to Spain which amounted to eight
Reales. Those who were required to pay the tributowere the (a) 18 to 50 years old
males, (2) the carpenters, bricklayers, blacksmiths, tailors, and shoemakers, and
(3) town workers such as those in road construction, and those whose is public in
nature.
2. Sanctorum was a tax in the amount of 3 Reales. These were required for the cost
of Christianization, including the construction of churches and the purchase of
materials for religious celebrations.
3. Donativo was a tax in the amount of half Real for the military campaign of the
government against the Muslims. In later years, however, the amount collected
from donativo was almost exclusively used for the Spanish fort in Zamboanga.
4. Caja de comunidad was a tax collected in the amount of 1 Real for the incurred
expenses of the town in the construction of roads, repair of bridges, or the
improvement of public buildings.
5. 5. Servicio personal also called polo y servicios was a form of forced labor during
the Spanish period in the Philippines. All able-bodied males, 16 to 60 years old
were required to work in the construction of bridges, churches, and galleon ships.
They were called polista. Earlier, the polistas were required to work for 40 days;
however, the number of days was lowered to 15 days in 1884 as a result of the tax
Cagayan and Dingras Revolts (1589). In 1589, the Cagayan and Dingras Revolts against
the tribute occurred on Luzon in the present-day provinces of Cagayan and Ilocos Norte.
The revolt of the llocanos, Ibanags and other Filipinos was triggered by the alleged
abuses of the tax collectors, including the collection of high taxes. Six tax collectors who
had arrived from Vigan were killed by the natives. Governor-General Santiago de Vera
sent Spanish and Filipino colonial troops to pacify the rebels. The rebels were pardoned
in the end. The Philippine tax system was also reformed because of the revolt. These
were the first native revolts against the hated tribute and the corrupt tribute collectors.
Although they were easily suppressed by government troops, more revolts of a similar
nature were to come one after another in subsequent years.
Agustin Sumuroy's Revolt (1649-1650). On June 1, 1649, Agustin Sumuroy, who was a
Waray from Palapag in today's Northern Samar, together with his followers rose in arms
against the Spaniards over the polo y servicio or forced labor system being started in
Samar. The revolt was triggered when the town mayors sent the Warays to the shipyards
in Cavite for forced labor, contrary to the directive of the government of Manila that all
natives subject to the polo would not be sent to distant places from their hometowns to
do forced labor. The rebels were responsible for the death murder of the parish priest of
Palapag. The revolt spread to Cebu, Masbate, Camiguin, Bicol, Camarines, Albay,
Zamboanga in Mindanao, and Surigao. The rebels succeeded in establishing a rebel
government in the mountains of Samar. However, the capture and execution of Agustin
Sumuroy on June 1650 led to the eventual defeat of the rebels. David Dula, Sumuroy's
co-conspirator, continued the quest, but was wounded in one of the fierce battles he
fought with the Spaniards years later. He was captured and later executed in Palapag,
Northern Samar. His men, the seven key lieutenants, were also executed.
Andres Malong Revolt (1660—1661). Malong (who was the Maestro de Campo of
Binalatongan, now San Carlos City, Pangasinan), in the 1660s was coaxed by Maniago
to revolt against the abuses of the Spaniards because they were experiencing the same
abuses. Malong, hoped to be King in the province of Pangasinan, as he assisted many
Spaniards in governing different towns in the said province, but abandoned it when the
war broke out in Pampanga. He heeded the call of Maniago and led the people of
Pangasinan to take up arms against the Spaniards. When he succeeded, he proclaimed
himself King of Pangasinan.
One of the good reforms which Spain introduced in the 19th century was the Tax
Reform of 1884, as provided by the Royal Decree of March 6, 1884, this tax reform
contained two important provisions: (1) abolition of the hated tribute and its replacement
of cedula tax, and (2) reduction of the 40-day annual forced labor (polo) to 15 days. The
Cedulas Personales. Cedulas were first issued based on the Royal Decree on March 6,
1884. All men and women residents of the islands - Spaniards, foreigners, and natives -
who were over 18 years old were required to obtain a cedula. The only exceptions were
the Chinese, who paid another poll tax, the remontados d infieles, that were not subject
to the local administration, and the natives and colonists of the archipelago of Jolo and of
the islands of Balabac and Palawan.
All in all, there were 16 different classes of cedulas. Originally, there were nine
classes taxed, the rates of taxes ranged from 1.50 pesos to 25 pesos, and a tenth, gratis,
for priests, soldiers and privileged classes.
LAND REFORM has gained great significance all over the world as it aims to
achieve social justice and full development of human dignity. Throughout time, the issue
of land reform has been persistent, demanding measures to stop social unrest. Worst
scenarios were observed during the colonial era when the Spanish colonizers introduced
new land-holding systems to caciques. The introduction of Torrens system created
serious problems that have far-reaching effects on the early systems of landholding. The
nature inhabitants lost their ancestral domains to the colonialists.
The poor economic and social conditions of the peasants in the Philippines need
immediate agrarian reform measures by the Philippine government.
PRE-SPANISH PERIOD
Filipinos already lived in villages and barangays even before the Spaniards came
to the Philippines. The settlements were ruled by chieftains or datus who comprised the
nobility. There were also the maharlikas (freemen), the aliping mamamahay (serfs) and
aliping saguiguilid (slaves). Despite the existence of a social structure, everyone had
access to the fruits of the soil. Rice was the medium of exchange as
money was yet unknown.
Taxation was not only the reasons for the revolts of the Filipinos during the Spanish
period, but the agrarian unrest as well. The Agrarian Revolt happened between 1745 and
1746 in Batangas, Laguna and Cavite, and Bulacan. The revolt happened. in the towns
of Lian and Nasugbu in Batangas. The grabbing of lands by the Catholic religious orders
The uprising resonated in other towns of the neighboring provinces, notably Bifian,
Imus, Silang, Kawit, Bacoor, San Mateo, Taguig, Parañaque, and Hagonoy. The agrarian
conflicts reached the ear of King Philip VI who appointed Oidor (a judge of the Royal
Audiencias and Chancillerias) Pedro Calderon Enriquez to investigate the charges
brought against the religious orders and to ascertain the validity of their titles to the lands
in question. The friars were ordered to submit their titles to a secular judge, but refused
to comply, claiming ecclesiastical exemption. In the face of their opposition the governor
general dispossessed the friars of the lands which were said to have been illegally
occupied by the friars and which they were continuing to hold without legitimate title,
restoring the lands to the Crown. The case was appealed by the friars to the Royal
Audiencia of Manila and that tribunal upheld the first decision; then the case was further
appealed to the Council of the Indies in Spain and again the decision was confirmed. But
the whole matter did not stop here; subsequently, the friars won their case and retained
the disputed lands, and their ownership of the lands remained intact even after the end
of the Spanish regime.
When Gen. Emilio Aguinaldo came to power in 1899, the Malolos Constitution
which they crafted intended to confiscate the so-called Friar lands and other large estates.
However, the First Philippine Republic was short-lived so that the plan to confiscate the
lands was never executed.
There were some noteworthy regulations enacted during the American period.
These were the Philippine Bill of 1902, which set the ceilings on the hectarage of private
individuals to 16 hectares, and 1,024 hectares for corporations. The Land Registration
Act of1902 (Act No. 496), which provided for a comprehensive registration of land titles
under the Torrens system. The Public Land Act of 1903, which introduced the homestead
system in the Philippines. The Tenancy Act of 1933 (Act No. 4054 and 4113), which
regulated relationships between landowners and tenants of rice (50-50 sharing) and
sugar cane lands. However, The Land Registration Act of 1902 did not completely solve
the problem of land registration under the Torrens system because the lands owners
During this period, President Manuel L. Quezon advocated the Social Justice
program to block the increasing social unrest in Central Luzon. Significant legislations
enacted during Commonwealth period were the following: The 1935 Constitution, which
was promulgated for the promotion of social justice to ensure the well-being and economic
security of all people, should be the concern of the State. The Commonwealth Act No.
178 (An Amendment to Rice Tenancy Act No. 4045), enacted on Nov. 13, 1936, provided
for certain controls in the landlord-tenant relationships. The National Rice and Corn
Corporation (NARIC) of 1936 established the price of rice and corn that helped the poor
tenants as well as consumers. The Commonwealth Act. No. 461, 1937, specified the
reasons for dismissal of tenants and only with the approval of the Tenancy Division of the
Department of Justice. The Rural Program Administration, created on March 2, 1939,
provided the purchase and lease of haciendas and their sale and lease to the tenants.
The Commonwealth Act No. 441, enacted on June 3, 1939, created the National
Settlement Administration with a capital stock of P20, 000,000.
JAPANESE OCCUPATION
During the Second World War (that started in Europe in 1939 and in the Pacific in
1941), the Hukbo ng Bayan Laban sa Hapon (HUKBALAHAP) controlled the areas of
Central Luzon. The HUKBALAHAP was composed of peasants and workers who took up
arms against the Japanese forces. Peasants who supported them earned fixed rentals,
while landowners who supported the Japanese lost their lands to peasants. But this was
short-lived because it ended with the end of WWII.
The problems of land tenure in the Philippines remained even after the Philippine
Independence in 1946. To address the problem, the Philippines Congress revised the
tenancy law.
During Roxas' administration, the following laws were enacted: Republic Act No.
34, which established the 70-30 sharing arrangements and regulated the share-tenancy
contracts. Republic Act No. 55, which provided for a more effective safeguard against
arbitrary ejectment of tenants.
President Elpidio Quirino (1948-1953) issued Executive Order No. 355 on October
23, 1950 replaced the National Land Settlement Administration with Land Settlement
Development Corporation (LASEDECO) that took over the responsibilities Of the
Agricultural Machinery Equipment Corporation and the Rice and Corn Production
Administration.
President Carlos P. Garcia (1957-1961) who succeeded the presidency after the
death of President Ramon Magsaysay continued the program.
The Philippines "New Society" (Kilusang Bagong Lipunan) was ushered in by the
proclamation of Martial law (Proclamation No. 1081) on September 21, 1972. During this
time, the Agrarian Reform program was put into law and land reform program was
implemented. In the events the followed, President Marcos decreed the following: (l)
Republic Act No. 6389, (Code of Agrarian Reform) and RA No. 6390 of 1971 that created
the Department of Agrarian Reform and the Agrarian Reform Special Account Fund and
expanded the scope of agrarian reform. (2) Presidential Decree No. 2, September 26,
1972, declared the country under land reform program and activated the Agrarian Reform
Coordinating Council. All government agencies were ordered to fully cooperate and assist
the Department of Agrarian Reform (DAR). (3) Presidential Decree No. 27, October 21,
1972, restricted the land reform scope to tenanted rice and corn lands and set the
retention limit at 7 hectares.
Article Il, Sec. 21 of the 1987 Philippine Constitution provides that '(The State shall
promote comprehensive rural development and agrarian reform." With this, President
Cory Aquino signed into law the following: (1) Executive Order No. 228, July 16, 1987,
which declared full land ownership to qualified farmer-beneficiaries covered by PD 27. (2)
Executive Order No. 229, July 22, 1987, provided the mechanism for the implementation
of the Comprehensive Agrarian Reform Program (CARP). (3) Proclamation No. 131, July
22, 1987, which instituted the CARP as a major program of the government. It provided
for a special fund known as the Agrarian Reform Fund (ARF), with an initial amount of
Php50 billion to cover the estimated cost of the program from 1987-1992. (4) Executive
Order No. 129-A, July 26, 1987, which streamlined and expanded the power and
operations of the DAR. (5) Republic Act No. 6657, also known as the Comprehensive
Agrarian Reform Law (CARL) which was signed into law on June 10, 1988. This law
instituted a comprehensive agrarian reform program to promote social justice and
industrialization. This law is still at work until the present. (6) Executive Order No. 405,
June 14, 1990, which conferred in the Land Bank of the Philippines (LBP) the
responsibility to determine land valuation and compensation for all lands covered by
CARP. (7) Executive Order No. 407, June 14, 1990, which accelerated the acquisition
and distribution of agricultural lands, pasture lands, fishponds, agro-forestry lands and
other lands of the public domain suitable for agriculture.
President Fidel V. Ramos (1992-1998) enacted laws that would promote a more
meaningful agrarian reform program. These laws include, (1) Republic Act No. 7881 of
1995, This law amended certain provisions of RA 6657 and •exempted fishponds and
prawns from CARP coverage. (2) Republic Act No. 7905 of 1995, which strengthened
CARP implementation. (3) Executive Order No. 363 of 1997, which prescribed the
guidelines for the protection of areas non-negotiable for conversion and monitoring
compliance with Section 20 of the Local Government Code. (4) Republic Act No. 8435 of
1997 (Agriculture and Fisheries Modernization Act AFMA), an act prescribing urgent
related measures to modernize the agriculture and fisheries sectors of the country in order
to enhance their profitability and prepare said sectors for the challenges of globalization
through an adequate, focused and rational delivery of necessary support services,
appropriating funds therefor and for other purposes. (5) Republic Act 8532 of 1998, an
act strengthening further the Comprehensive Agrarian Reform Program (CARP), by
providing augmentation fund therefor, amending for the purpose Section 63 of Republic
Act No. 6657, otherwise known as "The CARP Law of 1988". This law provided an
additional Php50 billion for CARP and extended its implementation for another 10 years.
ERAP initiated the enactment of Executive Order NO. 151, September 1999
(Farmer's Trust Fund), which established the farmers trust development program and
provided institutional reforms and fund mechanisms for mobilizing long term private sector
capital for rural development. President Estrada launched the Magkabalikat para sa
Kaunlarang Agraryo or MAGKASAKA. The DAR forged into joint ventures with private
investors into agrarian sector. The "Agrikulturang Maka Masa" was also launched that
achieved an output growth of 6 percent, which lowered the inflation rate from 11 percent
in January 1999 to just a little over 3 percent by November of the same year. This was a
record high at the time.
Pres. Arroyo envisioned to make the countryside economically viable for the
Filipino family by building partnership and promoting social equity and new economic
opportunities towards lasting peace and sustainable rural development. So, on
September 27, 2004, President Gloria Macapagal-Arroyo, signed (1) Executive Order No.
379 s 2004, amending Executive Order No. 364 entitled Transforming the Department of
Agrarian Reform into the Department of Land Reform (DLR), which broadened the scope
of the Department by making it responsible for all land reform in the country. It also placed
The issue of land reform has been persistent even up to the present time. The
current Duterte administration is committed to pursuing the agrarian reform program in
the country. President Duterte, who is also the chairman of the Presidential Agrarian
Reform Council (PARC), has included land tenure security in his 10-point socio-economic
agenda to improve the quality of life of farmers and raise their productivity.
presented in class.
The Tejeros Convention held at San Francisco de Malabon in Cavite on March 22,
1897 was the result of the Katipunan revolution. In this convention, the first president and
vice president (of the Philippines) were elected by the members of the Katipunan. The
elected president was Emilio Aguinaldo, and the vice president was Mariano Trias. It was
on November 1, 1897 that the Republic of Biak-na-Bato (Republica de Biak-na-Bato) was
established during a meeting held at Biak-na-Bato in the town of San Miguel de Mayumo
in Bulacan. This was a De Facto Constitutional Republic. In this meeting, the constitution
written by lsabelo Artacho and Felix Ferrer was promulgated by the Katipunan, which
acted as Constitutional Assembly. The Constitution of Biak-na-Bato known as the
"Constitucion Provisional de la Republica de Filipinas" was short-lived as it operated only
from November 1, 1897 to December 14, 1897.
The salient features of the 1899 Malolos Constitution include the declaration of
sovereignty of the people, the enumeration of the basic civil rights, the separation of the
Church and State, it provided for the creation of creation of an Assembly of
Representatives to act as the legislative body, and a parliamentary republic as the form
the Preamble of the 1899 Malolos Constitution reads, “We, the Representatives of the
Filipino people, lawfully convened, in order to establish justice, provide for common defense,
promote the general welfare, and insure the benefits of liberty, imploring the aid of the Sovereign
Legislator of the Universe for the attainment of these ends, have voted, decreed, and sanctioned
the following.”
The Acts of the United States Congress was in operation from December 10, 1898
to March 24, 1934, since the Philippines was a territory of the United States during these
periods because of the Treaty of Paris which transferred the sovereignty from Spain to
the United States. The acts, such as the Philippine Organic Act of 1902, the Philippine
Autonomy Act of 1916, and the Tydings-McDuffie Act of 1934, passed by the United
States congress were considered as the Philippine constitutions because they provided
for the fundamental political principles and established the structure, procedures, powers
and duties of the Philippine government.
Philippine Organic Act of 1902, also known as the "Philippine Bill of 1902", was the
first organic law enacted by the US Congress for the Philippines. It provided for the
creation of the Philippine Assembly, and a bicameral legislature composed of a Philippine
Commission (upper house) and the Philippine Assembly (lower house) were the
lawmaking power was vested. Like other constitutions, it also enumerated the bill of rights
for the Filipinos and provided for the appointment of two non-voting Filipino Resident
Commissioners of the Philippines that would represent the Philippines in the US House
of Representatives.
Philippine Autonomy Act of 1916, also known as the "Jones Law", amended the
structure of the Philippine government that was provided for in the Philippine Bill of 1902.
It removed the Philippine Commission (upper house) and replaced it with the Senate
whose members were elected by the Filipino voters. Because of this, the Philippines' first
fully elected national legislature came into being. A notable statement of this act was the
explicit expression of the United States to grant the Philippines its independence as soon
as a stable Philippine government would be established.
On March 24, 1934 the United States passed the Tydings-McDuffie Act that
allowed the Filipino nation to have a self-government. A ten-year transition period was
granted by this Act so that Filipinos could be prepared for self-government and full
independence. Unlike the other two acts which could be considered constitution, the
Tydings—McDuffie Act of 1934 could not be considered as a constitution, but still a very
important document which provided authority and defined mechanisms for the
establishment of a formal constituti0n via a constitutional convention. The eventful day
arrived on July 4, 1946, when the United States recognized Philippine independence in
the Treaty of Manila. The Philippine-American friendship day is celebrated every 4th of
July to commemorate the Philippine independence from the United States of America.
This constitution was written in 1934 with the goal of meeting the United States'
expectation of political maturity among Philippine leaders so that a full and real
independence could be granted by the US. This constitution was promulgated by the 1934
Constitutional Convention and was in operation during the Commonwealth era (1935-
1946), until the Third Republic (July 4, 1946 January 16, 1973). The Third Republic
started with the granting of Philippine independence from US domination on July 4, 1946
to Roxas Administration (1946—48), Quirino Administration (1948—53), Magsaysay
Administration (1953—57), Garcia Administration (1957—61), and Macapagal
Administration (1961—65).
In the Third Republic, the 1935 Constitution was still in operation, the form of
government of the Philippines was Unitary Presidential Constitutional Republic. Again, an
amendment was made in 1947, which provided for the provision of the Parity Rights
between the American and the Filipino citizens. The Parity Rights granted the U.S.
citizens and corporations equal rights with Filipino citizens over the Philippine natural
resources.
The Preamble of the 1935 Constitution reads, "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 regime of justice, liberty, and democracy,
do ordain and promulgate this Constitution."
Following its ratification, the Second Republic was then formally proclaimed. The
Second Philippine Republic was a single-party authoritarian republic. José P. Laurel was
appointed as President by the National Assembly and was inaugurated into office in
October 14, 1943, and Benigno Simeon Aquino Sr. was the Speaker of the National
Assembly.
The Preamble of the 1943 Constitution reads: “The Filipino people, imploring the aid
of Divine Providence and desiring to lead a free national existence, do hereby proclaim their
independence, and in order to establish a government that shall promote the general welfare,
conserve and develop the patrimony of the Nation, and contribute to the creation of a world order
based on peace, liberty, and moral justice, do ordain this Constitution.”
The 1973 Constitution amended on four occasions. (l) In the 1976 amendments,
the Interim National Assembly was replaced by the Interim Batasang Pambansa, the
President would also become the Prime Minister and would exercise legislative powers
until the lifting of the martial law, the President can legislate on his own on an "emergency
basis. (2) In the 1980 amendment, the retirement age of the members of the judiciary was
extended to 70 years. (3)In the 1981 amendments, the false parliamentary system was
formally modified into a French-style semi-presidential system were: executive power was
restored to the President, direct election of the President was restored, an Executive
Committee composed of the Prime Minister and not more than 14 members was created
to "assist the President in the exercise of his powers and functions and in the performance
of his duties as he may prescribe," and the Prime Minister was a mere head of the
Cabinet. (4) The 1984 amendment abolished the Executive Committee and restored the
position of Vice-President.
The Preamble of the 1973 Constitution reads, "We, the sovereign Filipino people,
imploring the aid of Divine Providence, in order to establish a Government that shall embody our
ideals, promote the general welfare, conserve and develop the patrimony of our Nation, and secure
to ourselves and our posterity the blessings of democracy under a regime of justice, peace, liberty,
and equality, do ordain and promulgate this Constitution.
Right after the 1986 People Power Revolution that compelled President Marcos to
step down from power, President Corazon Aquino issued Proclamation No. 3 to serve as
a provisional constitution. The proclamation contained some provisions adopted from the
1973 Constitution. Powers such as government reorganization, removal of officials,
appointment of a commission to draft a new and more formal Constitution, which upon
ratification, would supplant the Freedom Constitution.
The 1987 Philippine Constitution was drafted by a constitutional assembly that was
mandated in proclamation No. 3. The commission composed fifty members appointed by
President Corazon Aquino from various backgrounds: former members of the House of
Representatives, former justices of the Supreme Court, a Roman Catholic bishop, and
political activists against the Marcos regime. Cecilia Munoz-Palma, who was a former
Associate Chief Justice of the Supreme Court was elected by the commission as its
President. The final draft of the 1987 Constitution was finished on October 12, 1986 and
was presented to President Aquino on October. The constitution was ratified on February
8, 1987 through a nationwide plebiscite.
The 1987 Constitution operates since 1987, during the administration of Cory
Aquino (1986-1992), Fidel Ramos (19924998), Joseph Estrada (1998-2001), Gloria
Macapagal-Arroyo (2001-2010), Benigno Aquino Ill (2010-2016), and the current
administration of Rodrigo Roa Duterte (2016-present).
The Preamble of the 1987 Constitution reads, "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 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.”