MODULE12: TAXATION UNDER SPANISH PERIOD

“Here is my principle: Taxes shall be levied according to ability to pay. That is the only
American principle.”
- Franklin D. Roosevelt

OBJECTIVES. What will you learn from this module?

At the end of this module, you should be able to:

1. Understand the meaning and the different types of tax

2. Examine the role of tax in the Filipinos during Spanish period
3. Assess the importance of taxation in the development of a country

INTRODUCTION.

Good day! What will you do if you are asked to pay a tax which is more than your
income? Today, we will learn about the Filipinos’ oppression during Spanish period
through taxation. Your task is to creatively reconstruct the past by observing how Filipinos
live during this period. Have fun!

ANALYSIS. BINGO!

Answer the following until you form a pattern, BINGO!

_______ is a business tax ______ is the tax withheld _______ is the tax on BONUS
imposed and collected from individuals production, sale or _______ a charge usually
from the seller on every receiving purely consumption of a of money imposed by
sale of properties or compensation income. commodity in a country. authority on persons or
vendors of services. property for public
purposes.
______ is a tax on all ________ is tax on the ______ is a business tax
yearly profits arising from right of the deceased imposed those who sell
property, profession, person to transmit estate or lease goods,
trades or offices or as a to lawful heirs and BONUS properties or services in
tax on a person’s beneficiaries at the time the course of trade or
income, emoluments, of death and on certain Travelled to other business whose gross
profits and the like transfers which are country annual sales or receipts
made by laws as do not exceed P550 000
equivalent to and are not VAT-
testamentary disposition. registered.
________ is a tax on _______ is a tax imposed
documents, instruments, BONUS ________ is a tax on a on the gains presumed
loan agreements and donation or gift, and is to have been realized
papers evidencing the Buy goods from the imposed on the by the seller from the
acceptance, market gratuitous transfer of sale, exchange or other
assignment, sale or property between 2 or disposition of capital
transfer of an obligation, more persons who are assets located in the
rights, or property living at the time of Philippines.
incident. transfer.

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 LESSON12: TAXATION DURING THE SPANISH PERIOD

ABSTRACTION

Taxes Imposed by the Spanish Government in the Philippines

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 legislation 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 tributo were the (a) 18 - 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 in 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 for it 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. 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 reform issued through a Royal
Decree. Some of the polistas were brought to fight against the Muslims and others were
brought in the Spanish expeditions. The only way that a polista can be freed from forced
labor was when he paid falla, or fine. But only very few could afford to pay the fine. The
gobernadorcillo, cabeza de baranggay, and other members of the principalia were
exempt from forced labor and falla.

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REVOLTS AGAINST THE TRIBUTE

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 Ilocanos, 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. Govenor-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
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 Mindano, 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.

Francisco Maniago’s Revolt (1660-1661). In 1660, Francisco Maniago, a

Kapampangan, led an uprising in Pampanga. The Kapampangan were against the
tribute, forced labor, and rice exploitation. For eight months, they were made to work
under unfair conditions and were not paid for their labor and for the rice purchased from
them. Because of this, they set their campsite on fire and the fight ensued. This was the
start of a bloodier revolt in Pangasinan.

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.

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THE TAX REFORM OF 1884

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 priest, soldiers and privileged classes.

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 APPLICATION
How was it? What did you realize today? Are you ready to answer the questions
below? Choose at least 5 post-it-notes then answer the questions briefly to end the lesson
today. 5 Questions – 5 Sentences – 5 Points
What is a cedula? Why did Spaniards
How did the Spanish government issued it to the Filipinos?
controlled and maintained their
power towards the Filipinos?

What is the importance of tax in the

development of a country?

What is the role of government in the

implementation of tax?

What are the problems in the taxation

of Spanish government in the
Philippines?
What is/are the significance of the
revolts done by the Filipinos?

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