HISTORY OF TAXATION IN THE PHILIPPINES

- Ancient Filipinos started the practice of paying taxes

- The purpose of taxes is for the protection literacy from the Datu
- Collected tax is named “buwis”
- All of them are required to pay taxes except for chieftains’ household
- Non payment of taxes is already punishable way back then
- The arrival of Spaniards ushered in modern concepts of taxation
- Native Filipinos aged 16 to 60 years old were compelled to pay taxes amounting
to 8 reals (or 1 peso per year)
- Other forms of payment are golds, chickens, textile, cottons, rice and forced labor
(servicio y polo / polo y servicios)
- In 1884, the tribute was demolished and replaced by cedula (taxpayers’
information)
WHY PAY TAXES?
- Money used to buy states
- Expenditures for war
- Enforcement of the law and public order
- Protection of property
- Economic infrastructure
- Public works
- Social engineering
- Subsidies
- Operation of government
- Government use tax to fund welfare and public service (weh di nga?)
(Education, Health, Pensions for elders, Unemployment benefits, Public
transportation, Public utilities)