GROUP CARYL SEGUIA

12 JENNYLYN N. NASOL
CYFE BARRETTO
RAISSA MAE ALPUERTO
Even prior to the arrival of the
Spaniards in the Philippines and the
establishment of formal
communities, taxation has been
considered among the primary
purposes of leadership and
governance.
The datu or the local chieftain imposed
tributes to his subordinates in return for
protection to be accorded by his men.
Aside from this, all harvests belonged to
the local leader on whom the decision lies
as to how the harvest will be distributed to
the people.
 During the Spanish colonial period, the
system of collecting taxes became more
institutionalized because the natives were
regarded as conquered people and were
required to pay tributes in order to enrich
the royal exchequer and the officers who
accomplished the conquest. Authority to
collect taxes was vested on the cabeza.
 Tax rates were fixed or based on
percentages to ensure that a certain
portion would go to the Spanish crown.
This gave the cabeza power to charge more
than what was needed. It was only in 1867
that a codified law on taxation was
published.
 During that time, taxes were categorized under six headings:

(1) direct taxes, which included personal taxes and income tax;

(2) indirect tax or the custom duties;

LAUNCH
(3) monopolies that included the stamp tax, sale of quicksilver, salt, playing cards, gun
CODING
powder, liquors, tobacco, and opium;

(4) lotteries;

5) public domain; and

(6) miscellaneous (Plehn, 1901).

At present, Philippine tax laws are
based on the National Internal
Revenue Code, as revised with the
passage of the Tax Reform Act of 1997
and the Tax Reform for Acceleration
and Inclusion (TRAIN) Law in 2017.
 The power of taxation is defined as
the state's inherent power to impose
and collect revenue for the purpose
of supporting the government and
its recognized objectives. Taxation is
seen as the lifeblood of the
government, without which no
government can succeed.
 According to De Leon (2009), taxes are categorized under

six classes:

a. Poll, personal or capitation a. Revenue to raise

tax one imposed on residents money for the
1. As to the government
subject b. Property tax-imposed on 2. As to the
property purpose b. Regulatory - to regulate
matter:
an act or practice
c. Excise tax - imposed on a
privilege or right
 a. Ad valorem tax - based
a. Local/Municipal - based on 4. As to the on value of the object taxed
3. As to a certain locality determination determined by the appraiser
the scope of the amount
b. National - national in nature of tax to be b. Specific tax - based on
paid:
weight and measurement

a. Direct tax - imposed to a a. Proportional tax - based

person directly involved on a fixed percentage
6. As to the
5. As to who
graduation b. Progressive tax - based
bears the b. Indirect tax - forms part of
or rate: on certain tax bases
burden: the purchase price of the
commodity and passed on to c. Regressive tax the tax
consumers rate decreases as the base
increases
 At present, it is clear that, the TRAIN Law
brought about significant changes in
Philippine taxation. These changes
include the reclassification of
PERSONAL DOCUMENTARY
INCOME TAX DONORS VALUE
ESTATE ADDED
RATES STAMP
TAX
TAX TAX TAX
EXCISE TAX ON
AUTOMOBILES
.

PETROLEUM
PRODUCTS.
COSMETIC COAL AND
PROCEDURES TOBACCO
MINING
SWEETENED
BEVERAGES.
 The reduction in personal income tax
was seen as financial empowerment for
the public because it signified an
increase in the net earnings and
purchasing power. However, the
increase in taxes on petroleum products
and sweetened beverages were seen to
off set the perceived tax reduction.
 According to the government, the revised
tax rates were necessary to sustain the
expenses of the government in its golden
age of infrastructure campaign.The new tax
rate imposed on petroleum products and
sweetened beverages was blamed for the
drastic spike of inflation in the country,
which was recorded at 6.4% in August 2018.
This inflation rate is the highest in nine
years.
As of the third quarter of 2018, Congress is
attempting to pass the Tax Reform for
Attracting Better and High-quality
Opportunities (TRABAHO) Bill before the
year ends. The bill seeks to gradually reduce
corporate income tax from 30 percent to 20
percent by 2029 while removing previously
provided financial incentives and perks to
corporations.
 The tax cuts are expected to prompt
corporations to hire more workers to
increase production for better economic
performance. However, the bill is being
criticized in the context that it would have a
negative impact on foreign direct
investments in economic zones leading to
job losses, lower production, and capital
flight or pull-out of investors.
 Some critics were eager to point
out that the proposed tax reforms
would favor big corporations as
they are set to enjoy the tax cuts. As
such, some people see the
TRABAHO Bill as an anti-poor and a
pro-elite bill.
 The passing of the TRABAHO Bill is
perceived with hesitation by many
because of how the TRAIN law
seems to have resulted in increased
prices of commodities. The new set
of proposed tax reforms is not yet
fully understood by the public
which is why many are still
opposing it.
THANK
YOU