This document is uploaded by PoliTikalon Blog:http://www.politikalon.blogspot.com.The reading of this note is advised to be coupled with the downloadable PowerPoint presentation at:http://www.slideshare.net/JRLopezGonzales/taxation-101-basic-rules-and-principles-in-philippine-taxation-by-jr-lopez-gonzales-for-msu-iit-political-science-seminar .
During the Spanish Period, revolutionary income-generating means were introduced bythe government.
Polo Y Servicio
It is the forced labor for 40 days of men ranging from 16 to 60 years of age who wereobligated to give personal services to community projects. One could be exempted from thepolo by paying a fee called
falla (which was worth one and a half real)
. Falla is a corruption of the Spanish word
which means ³absence´.
anila-Acapulco Galleon Trade
The Manila-Acapulco Galleon Trade was the main source of income for the colonyduring its early years. Service was inaugurated in 1565 and continued into the early 19thcentury. The Galleon trade brought silver from New Spain and silk from China by way of Manila.This way, the Philippines earned its income through buy and sell - that is, they bought silk fromChina for resale to New Spain and then bought American silver for resale to China.However, it resulted in cultural and commercial exchanges between Asia and the Americas that led to the introduction of new crops and animals to the Philippines notablytobacco that gave the colony its first real income which benefit extended to the common Indio.The trade lasted for over two hundred years, and ceased in 1821 with the secession of American colonies from Spain.
system was introduced in 1570. It was introduced by the Spaniards tofacilitate the conquest and pacification of the Philippines. It comes from the word,
which means ³to take charge of´ or ³to entrust´. The
were given full authority tomanage the encomienda by collecting tribute from the inhabitants and govern people living on it.In 1591, there were 267 encomiendas in the Philippines.
Tribute was the residence tax during the Spanish times. It may be paid in cash or kind,partly, or wholly. The rate was originally set as eight
but was raised to ten in 1602 then totwelve reales in 1851 and 14 in 1874. In 1884, the tribute was replaced by the cedula personalor personal identity paper, equivalent to the present residence tax or community tax certificate(CTC).
hat is a ³cedula´?
In the 19th century, it was an identification card that had to be carried at all times. Aperson who could not present his or her cedula to a guardia civil could then be detained for being ³indocumentado´. Andres Bonifacio and other Katipuneros tore their cedulas in August1896, signaling the start of the Philippine Revolution.On its present usage, a
or community tax certificate is a legal identity documentin the Philippines. Issued by cities and municipalities to all persons that have reached the age of majority and upon payment of a community tax, it is considered as a primary form of identification in the Philippines and is one of the closest single documents the Philippines has toa national system of identification, akin to a driver's license and a passport.