CHAPTER IV: Social, Political, Economic and Cultural issues in

Philippine History

This chapter is dedicated to enduring issues in Philippine society, which history could lend a hand in
understanding, and hopefully proposing solutions
These topics include the mandated discussion of the Philippine Constitution, Agrarian Reform
Policies and Taxation.
It is hoped that these discussions will help us propose recommendations or solutions to present
day problems based on our understanding of root causes and how we anticipate future in Philippines
setting.

Learning Objectives
1. Analyze social, political, economic, and cultural issues in the Philippines using lens of history.
2. Recognize that the problems of today are consequences of decisions and events that happened
in the past.
3. Understand several enduring issues in Philippines society through history.
4. Propose recommendations or solutions to present-day problems based on the understanding of
the past and anticipation of the future through the story of history.

1 . The Philippines Constitution

What is Constitution?
A constitution is the fundamental and supreme law of the country. It is the mother of all laws
because the laws are born from it and must be consistent with it. A Constitution is a framework for
government is formed and run.
Constitution is the highest law of the land. It was approved by the 1986 Constitutional
Commission on October 12, 1986. Presented by Corazon C. Aquino on October 15, 1986. It was ratified
on February 2, 1987 by a Plebiscite.

The 1897 Constitution (Biak-Na-Bato)

The Pact of Biak-Na-Bato, signed on December 14, 1897, created a truce between Spanish
Colonial Governor-General Fernando Primo de Rivera and Revolutionary leader Emilio Aguinaldo to
end the Philippines Revolution. Aguinaldo and his fellow revolutionaries were given amnesty and
monetary indemnity by Spanish Government, in return for which the revolutionary government
would go into exile in Hong Kong. Aguinaldo had decided to use the money to purchase advance
firearms and ammunition later on return to the archipelago.
The 1899 Constitution (Malolos Constitution)
The Political Constitution of 1989, informally known as the Malolos Constitution, was the
Constitution of the First Philippine Republic. It was written by Felipe Calderon y Roca and Felipe
Buencamino as an alternative to a pair of proposals to the Malolos Congress by Apolinario Mabini and
Pedro Paterno. After a lengthy debate in the latter part of 1899, it was promulgated on January 21,
1899.
The Constitution placed limitations on unsupervised freedom action by the chief executive
which would have hampered rapid decision making. As it was created during fight for Philippine
independence from Spain, however, its article 99 allowed unhampered executive freedom of action
during wartime. Unsupervised executive governance continued throughout the Philippine American
War which erupted soon after proclamation.

The 1935 Constitution

The Commonwealth Constitution of 1935, informally known as the Tydings Mcduffie Act, was
the legal basis of the Commonwealth government's American-inspired constitution. It is the 10-year
transitional period from 1935 to 1945 in preparation for Philippine independence from the United
States occupation. The 1935 Constitution was approved on February 8, 1935, under the
administration of the late American president Franklin D. Roosevelt.
The original, approved Constitution was established as a unicameral national assembly, or one
legislative house. However, an amendment was passed on April 11, 1940, Resolution No. 73, passed by
the National Assembly, creating a bicameral Congress with a Senate and a House of Representatives,
similar to the United States Congress. The Constitution was effective from 1935 to 1973.

The 1943 Constitution

The Authoritarian Constitution of 1943, informally known as the Kalibapi Constitution, is the
only Constitution drafted under Japanese Imperial occupation during World War II. The Kalibapi
Constitution was the second republic of the Philippines under President Jose P. Laurel. The name of
the constitution came from the Kalibapi(Kapisanan sa Paglilingkod sa Bagong Pilipinas.), a political
party that was established along with the Japanese.
The Kalibapi Constitution, drafted in 1943, was the political tool used by the Japanese to
control the Second Philippine Republic. The Second Republic was never recognized by the United
States and the exiled Commonwealth led by President Quezon, for the reason that the constitution
was the sole legal party for a Japanese puppet state.

The 1973 Constitution

The Philippine Constitutional Plebiscite of 1973 ratified the 1973 Constitution of Philippines
• In 1970, delegates were elected to a constitutional convention which began to meet in 1971. In
September 1972, President Ferdinand Marcos declared martial law. The convention then re-convened
wrote a constitution in line with what dictator President Ferdinand Marcos wanted
• On 17 January 1973, Marcos issued Proclamation No. 1102 certifying and proclaiming that the 1973
Constitution had been ratified by the Filipino people and thereby was in effect. • These results were
challenged by the Ratification Cases heard by the Philippine Supreme Court in 1973.
• For this plebiscite to changes to voting requirements were implemented. The voting age was reduced
from 18 to 15 years old and those who were illiterate, as described by the opposition, were allowed to
vote.
PARLIAMENTARY FORM OF GOVERNMENT
• The 1973 Constitution proposes a Parliamentary form of government in the country
• Prime Minister is the head of the Parliamentary System
• A Prime Minister is elected from among the members of the National Assembly and serves as the
head of government and commander-in- chief of the Philippine Armed Forces.
• A President is elected from among the members of the National Assembly and serves as the symbolic
head of state with a six-year term.
The 1973 Constitution is composed of a PREAMBLE and 17 articles, provides for the shift from
presidential to parliamentary system of government.

1986 Freedom Constitution

The Provincial Constitution, popularly known as the Freedom Constitution, is the symbol of
hope and future happiness for the Filipino People brought about by the recent successful People’s
Revolution of February 22-25, 1986 which caused the ultimate downfall of the twenty-year tyrannical
regime of dictator Ex-President Ferdinand E. Marcos.

Proclamation No. 3
Declaring a national policy to implement the reforms mandated by the people, protecting their
basic right, adopting a provisional constitution, and providing for an orderly transition to a
government under a new constitution.

1987 Constitution
We, the sovereign Filipino people imploring the aid of Almighty God, in order to build a just
and humane society, and establish a Government that shall embody our ideals, and aspirations,
promote the common, conserve and develop our patrimony, and secure to ourselves and our
posterity, the blessings of independence and democracy under the rules of law and a regime of truth,
justice, freedom, love, equality and peace, do ordain and promulgate the Constitution.

The 1987 Constitution of the Republic of the Philippines was drafted and adopted by the
Constitutional Commission of 1986 on the 15th day of October, 1986, and ratified by the Filipino
people in a Plebiscite on February 2, 1987. Proclamation was made February 7, 1986.
Preamble Meaningful Additions
a. build a just and humane society – this is a new addition in the hope that we can build for
ourselves a happy and contended society devoid of fear and repression.
b. establish a government that shall embody our ideals and aspirations, promote the common
good, conserve and develop our patrimony, promote the common good, conserve and develop
our national patrimony.
c. secure to ourselves and our posterity the blessing of independence and democracy under the
rule of law and a regime of truth, justice, freedom, love, equality and peace.

Independence, rule of law, truth, love and peace are the additional words in the Preamble
designed to focus in a broader perspective the goal of Aquino government – to provide our people
with the love and care of a mother, and the tranquility of existence under a rule of law which they
richly deserve after two decades of nightmarish existence under the Marcos regime.

Agrarian Reform Policies

Agrarian Reform means the redistribution of lands, regardless of crops or fruits produced to
farmers and regular farmworkers who are landless, irrespective of tenurial arrangement, to include
the totality of factors and support services designed to lift the economic status of the beneficiaries and
all other arrangements alternative to the physical redistribution of lands, such as production or profit-
sharing, labor administration, and the distribution of shares of stocks, which will allow beneficiaries
to receive a just share of the fruits of the lands they work.

Aspects of Agrarian Reform

a. Economic Aspect
 Agrarian reform will help improve agricultural productivity to accelerate general economic
development.
 Increased efficiency in food production means more and better food for everyone.
Unemployment is resolved.
b. Socio-cultural Aspect
 Because of a sense of ownership, farmers are transformed to become leaders because they
enjoy the benefits of their own farm.
 Farmers will become more active and productive in leadership roles and nation-building.
c. Religious Aspect
 Everyone must enjoy the fruit of having a piece of land to till.
 Land is given by God for everyone to enjoy.
d. Moral Aspect
 Unequal distribution of wealth and power to only few persons.
 The ignorant and poor farmers are abused.
e. Legal & Political Aspect
 Formulation of laws are enacted to regulate the abuse existing between landlords and tenant-
farmers.

Historical Development of Agrarian Reform in the Philippines

Pre-Spanish Period
“This land is Ours God gave this land to us.”
Before the Spaniards came to the Philippines, Filipinos lived in villages or barangays ruled by chiefs
or datus. The datus comprised the nobility. Then came the maharlikas
(freemen), followed by the aliping mamamahay (serfs) and aliping saguiguilid (slaves).
However, despite the existence of different classes in the social structure, practically everyone had
access to the fruits of the soil. Money was unknown, and rice served as the medium of exchange.

Spanish Period
“United we stand, divided we fall.”
When the Spaniards came to the Philippines, the concept of encomienda (Royal Land Grants) was
introduced. This system grants that Encomienderos must defend his encomienda from external
attack, maintain peace and order within, and support the missionaries. In turn, the encomiendero
acquired the right to collect tribute from the indios (native).
The system, however, degenerated into abuse of power by the encomienderos. The tribute soon
became land rents to a few powerful landlords. And the natives who once cultivated the lands in
freedom were transformed into mere share tenants.

First Philippine Republic

“The yoke has finally broken.”
When the First Philippine Republic was established in 1899, Gen. Emilio Aguinaldo declared in the
Malolos Constitution his intention to confiscate large estates, especially the so-called Friar lands.
However, as the Republic was short-lived, Aguinaldo’s plan was never implemented.

American Period
“Long live America”
Significant legislation enacted during the American Period:
• Philippine Bill of 1902 – Set the ceilings on the hectarage of private individuals and
corporations may acquire: 16 has. for private individuals and 1,024 has. for corporations.
• Land Registration Act of 1902 (Act No. 496) – Provided for a comprehensive
registration of land titles under the Torrens system.
• Public Land Act of 1903 – introduced the homestead system in the Philippines.
• Tenancy Act of 1933 (Act No. 4054 and 4113) – regulated relationships between
landowners and tenants of rice (50-50 sharing) and sugar cane lands.
The Torrens system, which the Americans instituted for the registration of lands, did not solve the
problem completely. Either they were not aware of the law or if they did, they could not pay the survey
cost and other fees required in applying for a Torrens title.

Commonwealth Period
“Government for the Filipinos”
President Manuel L. Quezon espoused the "Social Justice" program to arrest the increasing social
unrest in Central Luzon.
Significant legislation enacted during Commonwealth Period:
• 1935 Constitution – "The promotion of social justice to ensure the well-being and
economic security of all people should be the concern of the State."
• Commonwealth Act No. 178 (An Amendment to Rice Tenancy Act No. 4045), Nov. 13,
1936 – Provided for certain controls in the landlord-tenant relationships.
• National Rice and Corn Corporation (NARIC), 1936 – Established the price of rice and
corn thereby help the poor tenants as well as consumers.
• Commonwealth Act. No. 461, 1937 – Specified reasons for the dismissal of tenants and
only with the approval of the Tenancy Division of the Department of Justice.
 • Rural Program Administration created on March 2, 1939 – Provided the purchase and
lease of haciendas and their sale and lease to the tenants. Commonwealth Act No. 441 enacted
on June 3, 1939 – Created the National Settlement Administration with a capital stock of
P20,000,000.

Japanese Occupation
“The Era of Hukbalahap”
The Second World War II started in Europe in 1939 and in the Pacific in 1941.
Hukbalahap controlled whole areas of Central Luzon; landlords who supported the Japanese lost their
lands to peasants while those who supported the Huks earned fixed rentals in favor of the tenants.
Unfortunately, the end of war also signaled the end of gains acquired by the peasants.
Upon the arriv al of the Japanese in the Philippines in 1942, peasants and workers organizations grew
strength. Many peasants took up arms and identified themselves with the anti-Japanese group, the
HUKBALAHAP (Hukbo ng Bayan Laban sa Hapon).

Philippine Republic
“The New Republic”
After the establishment of the Philippine Independence in 1946, the problems of land tenure
remained. These became worst in certain areas. Thus, the Congress of the Philippines revised the
tenancy law.

Taxation

What is Taxation?
Taxation is the very act or practice of collecting taxes. It happens when the government or a taxing
authority obtains the right amount of money from its citizens based on their earnings and properties
as a payment for public services. That’s why proper implementation of taxation in Manila, Philippines
is vital to our country’s and the Filipinos’ growth.

TYPES OF NATIONAL TAXES

1. CAPITAL GAINS TAX Tax imposed on gains that may have been realized by a seller from the
sale, exchange, or other disposition of capital assets located in the Philippines including pacto de retro
sales (a sale with a condition for repurchase) and other forms of conditional sale.
2. DOCUMENTARY STAMP TAX Tax on documents, instruments, loan agreements, and papers
evidencing the acceptance, assignment, sale, or transfer of an obligation, rights, or property incident
thereto.
3. DOCUMENTARY STAMP TAX Documentary Stamp taxes are evident on documents like bank
promissory notes, deed of sale, and deed of assignment on transfer of shares of corporate stock
ownership.
4. DONOR’S TAX Donor’s tax is a tax on a donation or gift. It is also tax imposed on the gratuitous
transfer of property between two or more persons who are living at the time of transfer. It shall apply
whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the
property is real or personal, tangible or intangible.
5. ESTATE TAX Tax on the right of the deceased person to transmit his/her estate to lawful heirs
and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to
testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of
transmitting property upon death of the owner. The estate tax is based on the laws in force at the time
of death notwithstanding postponement of the actual possession or enjoyment of the estate by the
beneficiary.
6. INCOME TAX Tax on all annual profits made from property ownership, profession, trades, or
offices. It is also a tax on a person’s income, emoluments (salary), profits, etc. 7. PERCENTAGE
TAX Business tax imposed on people or entities who sell or lease goods, properties, or services during
trade or business whose gross annual sales or receipts do not exceed the amount required to register
as VAT-registered taxpayers.
8. VALUE-ADDED TAX Business tax imposed and collected from the seller during trade or
business on every sale or properties, or vendors of services. This is an indirect tax; thus, it can be
passed on to the buyer, causing the increase of prices of most goods and services bought and paid by
customers.
9. EXCISE TAX Tax imposed on good manufactured or produced in the Philippines for domestic
(local) sale or consumption or any other disposition. It is also imposed on things that are imported to
the Philippines.
10. WITHHOLDING TAX ON COMPENSATION Tax withheld (restrained) from individuals
receiving purely compensation income arising from an employer-employee relationship. This is being
remitted by the employer to the government through the BIR or authorized accrediting agent.
11. EXPANDED WITHHOLDING TAX Prescribed only for certain payors like those withheld on
rental income and professional income.
12. FINAL WITHHOLDING TAX Kind of withholding tax prescribed only for certain payors and
is not creditable against the income tax due of the payee for the taxable year. An example is tax
withheld by banks on the interest income earned on bank deposits.
13. WITHHOLDING TAX ON GOVERNMENT MONEY PAYMENTS Withholding tax
withheld by government offices including government-owned or – controlled corporations and local
government units, before making any payments to private individuals, corporations, partnerships,
and/or associations.

LOCAL TAXES Taxes based on the local government taxation in the Philippines as stated in the
Republic Act 7160 or the Local Government Code of 1991, as amended. These are taxes, fees, or
charges are imposed by the local government units such as provinces, cities, municipalities, and
barangays.

TYPES OF LOCAL TAXES

1. TAX ON TRANSFER OF REAL PROPERTY OWNERSHIP Tax imposed on the sale,

donation, barter, or on any other mode of transferring ownership of real property.
2. TAX ON BUSINESS OF PRINTING AND PUBLICATION Imposed on printing and
publication businesses like that of books, cards, posters, leaflets, handbills, certificates, receipts,
pamphlet, and others of similar nature.
3. FRANCHISE TAX Tax on franchised businesses, at the rate not exceeding 50% of 1% of the gross
annual receipts of the preceding calendar year based on the incoming receipt (annual earning) with
the territorial jurisdiction where the franchise is selling in. 4. TAX ON SAND, GRAVEL, AND
OTHER QUARRY RESOURCES Imposed on ordinary stones, sand, gravel, earth, and other
quarry resources, as defined under the National Internal Revenue Code, as amended. This refers to
the above materials extracted from public lands or from beds of seas, lakes, rivers, streams, creeks,
and other public waters within its territorial jurisdiction.
5. PROFESSIONAL TAX Annual tax on each person engaged in the exercise or practice of his or
her profession that requires government examination, like licensure examinations.
6. AMUSEMENT TAX Tax collected from the proprietors, lessees, or operators of theaters,
cinemas, concert halls, circuses, boxing stadia, and other places of amusement. 7. ANNUAL FIXED
TAX FOR EVERY DELIVERY TRUCK OR VAN OF MANUFACTURERS OR PRODUCERS,
WHOLESALERS OF, DEALERS, OR RETAILERS IN, CERTAIN PRODUCTS Annual fixed
tax for every truck, car, or any vehicle used by manufacturers, producers, wholesalers, dealers, or
retailers in the delivery or distribution of distiller spirits, fermented liquors, soft drinks, cigars and
cigarette and any other products to sales, outlets, or consumers, whether directly or indirectly, within
the province. This type of tax is usually imposed as determined by the local provincial councils
through which the truck or trucks pass through or deliver their cargo.
8. TAX ON BUSINESS Imposed by cities or municipalities o businesses before they will be issued a
business license or permit to start operations based on the schedule of rates prescribed by the local
government code, as amended.
9. TAX ON BUSINESS Businessmen pay this tax if they apply for a Mayor’s Permit to conduct their
business in the local government unit. Rates of these taxes vary among cities and municipalities.
10. FEES FOR SEALING AND LICENSING OF WEIGHTS AND MEASURES Imposed for
the sealing and licensing of weights and measures. This is to impose regulations with regards to such
weights and measures as prescribed by the city, provincial, or municipal council.
11. FISHERY RENTALS, FEES, AND CHARGES Imposed by the municipality/city to grantees
of fishery privileges in the municipality/city waters especially the privilege to build fish corals, oysters,
mussels, or other aquatic beds or bangus fry areas and others as specified in the Local Government
Code.
12. COMMUNITY TAX Tax levied by cities or municipalities to every Filipino or alien living in the
Philippines, eighteen (18) years of age or over, who has been regularly employed on a wage or salary
basis for at least thirty (30) consecutive working days during any calendar year. Community tax is also
imposed on every corporation no matter how created or organized, whether domestic or resident
foreign, engaged in or doing business in the Philippines. *Cedula
13. TAXES LEVIED BY THE BARANGAYS ON STORES OR RETAILERS WITH FIXED
BUSINESS ESTABLISHMENTS Imposed on stores with gross sales of receipts of the preceding
calendar year amounting to P50,000.00 or less (for city barangays) and P30,000.00 or less for
municipal barangays) at a rate not exceeding 1% on such gross sales or receipts.
14. SERVICE FEES OR CHARGES Collected by the barangay for services rendered in connection
with the regulation or the use of barangay-owned properties or service facilities, such as palay, copra,
or tobacco driers.
15. BARANGAY CLEARANCE Fee collected by barangays upon issuance of barangay clearance, a
document required for many government transactions, such as when getting a business permit from a
city or municipal government or applying for a job in a government office or a private company
References:

The Philippine Constitution

Pasimio, R. R. (1991). The Philippine Constitution (It's evolution and development) and Political
Science. 1986 Constitution (The freedom constitution). 1987 Constitution (Preamble). (page 289,
307)

The 1897 Constitution (Biak-Na-Bato)

https://www.scribd.com/presentation/452878624/The-1897-Constitution-of-Biak-na-Bato

The 1899 (Malolos Constitution)

https://dbpedia.org/page/Malolos_Constitution
https://youtu.be/aRu_96uW9J0?feature=shared

The 1935 Constitution

https://rb.gy/8z6qu6

The 1943 Constitution

https://rb.gy/k3o4z3

The 1973 Constitution

https://rb.gy/th31ib

Agrarian Reform Policies

https://www.dar.gov.ph/about-us/agrarian-reform-history/

Taxation
https://www.ykclaw.ph/taxation-in-manila-philippines/#:~:text=It%20happens%20when%20the
%20government,a%20payment%20for%20public%20services.