GERRP01X- READING IN PHILIPPINE HSTORY

Course Material Week 6-8

Philippine Constitution
Agrarian Reform
Taxation

Submitted by: DUGENIO, KATHLEEN DIMAANO

Submitted to: ALEA SHANE V. ALCANTARA

Year 2022-2023
 I. ASSESSMENT

A. What is the present state of agrarian reform in the Philippines? Cite any present
agriculture/ agrarian related policies implemented by the present administration. Do you
think it is beneficial to the Filipino farmers? Explain.

President Ferdinand R. Marcos Jr. signs an Executive Order for the Moratorium on the
Annual Amortization of Agrarian Reform Beneficiaries at the Heroes Hall in Malacañan Palace
on September 13, 2022. According to the Department of Agrarian Reform (DAR), this measure
is expected to benefit 654,000 agrarian reform beneficiaries. It aims to amend Section 26 of
Republic Act No. 6657 or the Comprehensive Agrarian Reform Law to give farmers a breathing
space from their loans.

According President Marcos Jr. Aggregation Reform Program needed to be continued

because agrarian reform is not only acquisition but also about support, service and distribution.
Therefore, President Marcos Jr. implemented an E.O to impose 1 year moratorium on the
payment of land, amortization and interest payment. This is included in R.A no. 11469 or the
Bayanihan to Heal as One Act, a moratorium will give the farmers the ability to channel the
resources in developing their farms, maximizing their capacity to produce and propel the growth
of our economy. And this is beneficial to our farmers because it will unburden the farmers of
their dues and be able to focus on improving farm productivity. In R.A no. 6657 the loans of
agrarian reformed beneficiaries with unpaid amortization and interest shall be condoned. The
objective of this law is to erase the unpaid debt of our farmers which are the beneficiaries of
agrarian reform. Agrarian reformed beneficiaries who are still to receive the rewarded land under
the Comprehensive Agrarian Reform Program shall receive it without any obligation to pay any
amortization. The combination of the existing agrarian reform loan will cover the amount of
58.125 billion pesos, benefiting 6540 agrarian reform beneficiaries and involving a total of one 8
million hectares of awarded lands.
 B. Do you think 1987 Constitution is still relevant? Cite any provisions of the Constitution
which needs to reviewed or be strictly implemented? Justify.

Our nation is currently facing significant difficulties. Massive poverty and the sharp
inequality that separates our people are the main issues we have. Political dynasties still exist,
which breeds politics based on patronage and personalities. The flagrant contempt for the rule of
law and the right to life, as well as our incapacity to "think Filipino" as a single people united by
a shared destiny and working for a just peace across the nation, are issues that need to be
addressed. These issues need to be prioritized since they are urgent.

We believe that the hasty attempt to write a new constitution by making Congress a
constituent assembly, purportedly to change our system of government into a federal one, will
further divert attention from the issues that ought to remain our top priority. And I think that for
some people our 1987 constitution is now irrelevant because of our population—nearly three-
fourths—is not familiar with the 1987 Constitution. Our Constitution's many clauses have not all
been completely applied. The main goals of the proposed Charter amendment can be achieved if
we commit to making sure it is adequately understood, observed, and implemented—in other
words, without having to create a new constitution.

I believe that our present constitution is not the problem but instead a part of our
solution. In Article X of the 1987 Constitution the local government units is given “the power to
create its own sources of revenues” in Section 5; are “entitled to an equitable share in the
proceeds of the utilization and development of the national wealth within their respective areas”
in Section 7; and, “the power to group themselves, consolidate, or contribute their efforts,
services, and resources” in Section 13. The Local Government Code of 1991, without amending
the Constitution, can be built upon to further decentralize power, to more equally allocate
resources, and to distribute wealth.
 C. What is the present state of taxation system in the Philippines? Cite any present tax-
related policies implemented by the present administration. Do you think it is beneficial
to the Filipinos, especially the poor and working class? Explain.

With the passage of the TRAIN and CREATE laws, which generally decreased tax
rates and streamlined tax incentives, our tax system experienced significant overhaul in the
previous several years. However, the government had to look for additional revenue sources in
order to pay off the national debt and fund its initiatives due to the demands of the time. The
2022 Fiscal Consolidation and Resource Mobilization Plan, which sought to amend and
supplement existing tax laws for more effective and efficient revenue collection, was released by
the Department of Finance (DoF) under the direction of former Secretary Carlos G. Dominguez
III, and made clear as much. The following are some of the key components of the plan:

 Delaying the second tranche of progressive income tax rate reductions, which range
from 15% to 35%, until 2025 in addition to maintaining the current tax rates under
the TRAIN Law.
 Value-Added Tax (VAT) system alterations
 Expansion of the VAT base by adding the 12% VAT to some previously
VAT-exempt or VAT-zero rated goods. However, exemptions for the
industries of education, agriculture, health, finance, and raw food will
continue to exist.
 A potential 10% VAT cut from 12%.
 Reimposition of the VAT input tax amortization for a term not to exceed 60
months for capital goods valued at more than P1 million.
 Imposition of a 12% VAT on all aspects of the digital economy, including
digital services, online advertising, and the provision of other services.
 Additional excise taxes on motorbikes, pickup trucks, fuel, coal, single-use plastics,
and a wider range of luxury products that are subject to excise taxes.
 Changes to health/sin taxes include raising the excise tax on cigarettes and e-cigarettes,
charging alcopops at the same rate as fermented alcohol, and adopting a higher unitary
rate for sweetened beverages.
  Casino entrance fees as well as an electronic gambling tax.
 Taxes on cryptocurrencies and carbon emissions are currently being researched.
 Improving tax administration, including taxing social media influencers and carrying
out BIR transfer pricing checks.

Maybe this could be useful for others, however I extraordinarily doubt it'll be for the bad and
running class. Because the tax system in the Philippines is most effective "mildly" modern or
even slightly "regressive"; as a result, many times, the impoverished Filipinos emerge as paying
a larger percent in their profits in taxes. For instance, tax charges on dividends and different
capital revenues, which can be basically received through the rich, are extraordinarily low whilst
as compared to tax charges paid through ordinary workers. The wealthiest will absolutely pay
greater in taxes because of an boom in those capital profits tax charges. There are too many
Filipinos who can keep away from paying taxes. Of course, there are the tax evaders who,
because of our excessively robust financial institution secrecy laws, are nearly difficult to capture
and prosecute. Additionally, individuals who acquire salaries or wages, from time to time
recognized as "repayment earners," land up paying better taxes than specialists and unbiased
contractors (who've a few capacity to cover a part of their incomes). As a result, among 2010 and
2013, individuals who acquired repayment made up 60% of the kingdom`s overall profits but
paid as much as 80% of all taxes. Unfortunately, those regions of the Philippine tax device are
actually lacking. Our taxes now no longer most effective unfairly choose the rich and
disproportionately penalize the bad, however in addition they generate a whole lot too little
profits as compared to the distortions they cause. Naturally, each troubles require short solutions.
The kingdom desires complete tax reform now greater than ever.
REFERENCE

The Constitution of the Republic of the Philippines | GOVPH. (n.d.). Official Gazette of the
Republic of the Philippines. Retrieved October 31, 2022, from
https://www.officialgazette.gov.ph/constitutions/1987-constitution/

Valente, C. S. (2022, July 25). Tax reform key to growth – Marcos. The Manila
Times. https://www.manilatimes.net/2022/07/26/news/national/tax-reform-key-to-growth-
marcos/1852289?fbclid=IwAR2rb9KXmPZAWClMa9nS4zZpzAVKQLfyHi4zY31mYpkbkoZb
rF_n3_XOhF0

PricewaterhouseCoopers. (n.d.). Proposed tax reforms for resource mobilization. PwC.

Retrieved October 31, 2022, from https://www.pwc.com/ph/en/tax/tax-

publications/taxwise-or-otherwise/2022/proposed-tax-reforms-for-resource-

mobilization.html?fbclid=IwAR3H0qSwNdjaX83OzB72bFHJJdXAsL8z328-

NU1NKFYsliOLqGi5vYbtzrg

Punongbayan, J. C. (2017, January 21). The problem with our tax system and how it affects us.

RAPPLER. https://www.rappler.com/voices/thought-leaders/159027-philippine-tax-system-

problems-effects-

filipinos/?fbclid=IwAR3RNl5sSbqdzqxzBPRdkdTYlWGGZ5FMhuYKGw_UWUwv7gZoyel1Q

j6EDrk