FISCAL POLICY FROM 1946 TO PRESENT

PRESIDENT MANUEL ROXAS

 When Manuel Roxas started his term as the first president of the third republic
of the Philippines, the country was paralyzed because World War II just ended.
The reconstruction of the post - war Philippines fell into the hands of Manuel
Roxas. Philippines was severely struggling with low production, decreasing job
availability/increasing unemployment rates, weak education system and
interference in the government sector by the American government.

PRESIDENT ELPIDIO QUIRINO

 The momentum for economic growth came during his time through the
implementation of import and exchange controls that led to import substitution
development.

*Import and exchange controls - method of state intervention in the imports and
exports of the country , so that the adverse balance of payments may be corrected.

*Import Substitution Development - is a trade and economic policy which advocates

replacing foreign imports with domestic production.

*Corporate Tax Rates - is a tax imposed on the net income of the company.

PRESIDENT MAGSAYSAY, GARCIA, AND MACAPAGAL

 Promised to study the tax structure and policy of the country (through the
creation of a Tax Commission in 1959 by means of Republic Act No. 2211)
 The period of the post - war republic also saw a rise in corruption.

*Indirect taxation - is a tax collected by an intermediary from the person who bears
the ultimate economic burden of the tax.

*Tax Revenue - is defined as the revenues collected from taxes on income and profits,
social security contributions, taxes levied in goods and services, payroll taxes, taxes
on the ownership and transfer of property, and other taxes.

 Collection of taxes remained poor; tax structure was still problematic; and
much of public funds were lost to corruption, which left the government
incapable of funding projects geared toward development.
PRESIDENT FERDINAND MARCOS

 The tax system was still heavily dependent on indirect taxes, which made up of
70% of total tax collection.
 The tax system remained unresponsive.
 Taxes grew at an average annual rate of 15% and generate a low tax yield.

*Tax Effort - the ratio between the share of the actual tax collection in gross domestic
product and predictable taxable capacity was at a low 10.7%.

PRESIDENT CORAZON AQUINO

 Reformed the tax system through the 1986 Tax Reform Program

*1986 Tax Reform Program - its aim was to “simplify the tax system, make revenues
more responsive to economic activity, promote horizontal equity and promote growth
by correcting existing taxes”

 Along with tax reform came the administrative reforms such as the
restructuring of the Dept. of Finance and the BIR through the executive Order
127, collection and tax audits were intensified, computerization was introduced;
and corruption was relatively reduced.
 Both tax and revenue effort rose, increasing from 10.7% in 1985 to 15.4% in
1992.

PRESIDENT FIDEL RAMOS

 This administration ventured into its own tax reform program in 1997 through
the Comprehensive Tax Reform Program.

*Comprehensive Tax Reform - implemented to make the tax system broad-based,

simple, and with simple and reasonable tax rates, minimize tax avoidance allowed by
existing loopholes in the system, encourage payments by increasing tax exemptions
levels, lowering the higher tax rates, and simplifying procedure and rationalize the
grant of tax incentives.

PRESIDENT JOSEPH ETRADA

 His term was too short to constitute any change in the tax system.
PRESIDENT GLORIA ARROYO

 She undertook increased government spending without adjusting tax

collections. This resulted in large deficits from 2002 - 2004.

*Expanded Value - Added Tax (E-VAT) - signed into law as Republic Act 9337;
expanded the VAT base; taxed selected professional services and VAT tax rate was also
increased from 10% to 12%.

PRESIDENT BENIGNO AQUINO III

 The administration ventured into the adjustment of excise tax on liquor and
cigarettes or the Sin Tax Reform.

*Sin Tax Reform - It is primarily a health measure with revenue implications, but more
fundamentally, it is a good governance measure. It helps finance the Universal Health
Care program of the government, simplified the current excise tax system on alcohol
and tobacco product.

PRESIDENT RODRIGO DUTERTE

 Promised tax reform, particularly in income taxes as it vowed to lower income

tax rates shouldered by working Filipinos.
 The proposed tax reform seeks to limit VAT exemptions and increase excise
taxes on petroleum products and automobiles.
 The present income tax scheme of the country is the second highest in the
Southeast Asia and the current laws on income taxes were outdated as they
were drafted two decades ago.