1.

a.) Under the New Central Bank Act, the BSP performs the following functions, all of which relate to its
status as the Republics central monetary authority.

Liquidity Management. The BSP formulates and implements monetary policy aimed at
influencing money supply consistent with its primary objective to maintain price stability.
Currency issue. The BSP has the exclusive power to issue the national currency. All notes and
coins issued by the BSP are fully guaranteed by the Government and are considered legal tender
for all private and public debts.
Lender of last resort. The BSP extends discounts, loans and advances to banking institutions for
liquidity purposes.
Financial Supervision. The BSP supervises banks and exercises regulatory powers over non-
bank institutions performing quasi-banking functions.
Management of foreign currency reserves. The BSP seeks to maintain sufficient international
reserves to meet any foreseeable net demands for foreign currencies in order to preserve the
international stability and convertibility of the Philippine peso.
Determination of exchange rate policy. The BSP determines the exchange rate policy of the
Philippines. Currently, the BSP adheres to a market-oriented foreign exchange rate policy such
that the role of Bangko Sentral is principally to ensure orderly conditions in the market.
Other activities. The BSP functions as the banker, financial advisor and official depository of the
Government, its political and instrumentalities and government-owned and -controlled
corporations.

http://www.bsp.gov.ph/about/functions.asp

b.)

i. REPUBLIC ACT No. 7653- The primary objective of the BSP's monetary policy is to promote price stability
conducive to a balanced and sustainable growth of the economy. The State shall maintain a central
monetary authority that shall function and operate as an independent and accountable body
corporate in the discharge of its mandated responsibilities concerning money, banking and
credit. In line with this policy, and considering its unique functions and responsibilities, the
central monetary authority established under this Act, while being a government-owned
corporation, shall enjoy fiscal and administrative autonomy.

Section 2. Creation of the Bangko Sentral. - There is hereby established an independent

central monetary authority, which shall be a body corporate known as the Bangko Sentral ng Pilipinas,
hereafter referred to as the Bangko Sentral.

http://www.lawphil.net/statutes/repacts/ra1993/ra_7653_1993.html

ii. REPUBLIC ACT NO. 8762 - AN ACT LIBERALIZING THE RETAIL TRADE BUSINESS, REPEALING FOR
THE PURPOSE REALING FOR THE PURPOSE REPUBLIC ACT NO. 1180, AS AMENDED, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines of Representatives of the
Philippines in Congress assembled:
Section 1. Title This Act shall be known as the "Retail Trade Liberalization Act of 2000."

Section 2. Declaration of Policy. It is the policy of the State to promote consumer welfare in attracting
promoting and welcoming productive investment that will bring down price for the Filipino consumer, create
more jobs, promote tourism, assist small manufacturers, stimulate economic growth and enable Philippine
goods and services to become globally competitive through the liberalization of the retail trade sector.

Pursuant to this policy, the Philippine retail industry is hereby liberalized to encourage Filipino and competitive
retail trade sector in the interest of empower the Filipino consumer through lower prices, higher quality goods,
better services and wider choices.

iii. Republic Act No. 9520 - February 17, 2009

AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE

"PHILIPPINE COOPERATIVE CODE OF 2008"

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

SECTION 1. Articles 1, 2, 3, 4 and 5 of Chapter 1 on General Concepts and Principles of Republic Act No.
6938, otherwise known as the "Cooperative Code of the Philippines," are hereby amended to read as follows:

CHAPTER I
GENERAL CONCEPTS AND PRINCIPLES

"ARTICLE 1. Title. - This Act shall be known as the "Philippine Cooperative Code of 2008".

"ART. 2. Declaration of Policy.- It is the declared policy of the State to foster the creation and growth of
cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards
the attainment of economic development and social justice. The State shall encourage the private
sector to undertake the actual formation and organization of cooperatives and shall create an
atmosphere that is conducive to the growth and development of these cooperatives.

"Toward this end, the Government and all its branches, subdivisions, instrumentalities and agencies
shall ensure the provision of technical guidance, financial assistance and other services to enable said
cooperatives to develop into viable and responsive economic enterprises and thereby bring about a
strong cooperative movement that is free from any conditions that might infringe upon the autonomy or
organizational integrity of cooperatives.

"Further, the State recognizes the principle of subsidiarity under which the cooperative sector will
initiate and regulate within its own ranks the promotion and organization, training and reserach, audit
and support services relative to cooperatives with government assistance where necessary.

iv. PRESIDENTIAL DECREE No. 1648

REORGANIZING THE NATIONAL DEVELOPMENT COMPANY AND ESTABLISHING A REVISED

CHARTER THEREFOR

Section 2. Declaration of Policy. It is the declared policy of the State to promote overall economic development
through assistance to commercial, industrial, agricultural or mining ventures. For this purpose, when necessary
or when private enterprise is not willing or able to undertake vital projects, it may, on its own or in joint venture
with the private sector, undertake such projects.

http://www.lawphil.net/statutes/presdecs/pd1979/pd_1648_1979.html
v. PRESIDENTIAL DECREE No. 1718

PROVIDING FOR INCENTIVES IN THE PURSUIT OF ECONOMIC DEVELOPMENT PROGRAMS BY

RESTRICTING THE USE OF DOCUMENTS AND INFORMATION VITAL TO THE NATIONAL INTEREST IN
CERTAIN PROCEEDINGS AND PROCESSES

WHEREAS, the Government promotes, encourages and assists the business sector in its active participation in
development programs designed to implement prescribed policies of the State;

WHEREAS, in pursuance of such programs and in order to achieve the desired goals and objectives, the
Government has authorized certain activities, measures, and undertakings to be done by the private sector;
and

WHEREAS, the Government should provide protection to all persons and entities carrying out the economic
development programs against the enforcement of certain requirements, orders and judgments of foreign
authorities which operate to impose upon this nation their own economic policies, concepts and ideas;
perpetuate the economic advantages of the industrial countries over the developing nations; favor foreign
competitors; and embarrass, disrupt, or damage business carried on in the country;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby order and decree:

Section 1. It is hereby declared a policy of the State that any and all documents and information possessed by
or in the custody of Philippine corporations, entities or individuals doing business in the pursuit of the national
economic development programs of the Government and/or engaged in the development, promotion,
protection and export of Philippine products to increase foreign currency revenues, are vital to the national
interest and should not be utilized by any foreign person or government to the prejudice and/or detriment of
said corporations, entities or individuals, including their officers and employees.

2.

a.) Republic Act No. 8424 December 11, 1997

AN ACT AMENDING THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

Section 1. Short Title. - This Act shall be cited as the "Tax Reform Act of 1997".

Section 2. State Policy. - It is hereby declared the policy of the State to promote sustainable economic growth
through the rationalization of the Philippine internal revenue tax system, including tax administration; to provide,
as much as possible, an equitable relief to a greater number of taxpayers in order to improve levels of
disposable income and increase economic activity; and to create a robust environment for business to enable
firms to compete better in the regional as well as the global market, at the same time that the State ensures
that Government is able to provide for the needs of those under its jurisdiction and care.

b.) REPUBLIC ACT NO. 10143

AN ACT ESTABLISHING THE PHILIPPINE TAX ACADEMY, DEFINING ITS POWERS AND FUNCTIONS
Be it enacted by the Senate and House of Representative of the Philippines in Congress assembled:

ARTICLE I
TITLE, DECLARATION AND POLICY OBJECTIVES

Section 1. Short Title. - This Act shall be known as the "Philippine Tax Academy Act".

Section 2. Declaration of Policy. - It is the policy of the State to train, mold, enhance and develop capabilities of
tax collectors and administrators to help improve their tax collection efficiency and to become competent and
effective public servants for the national interest. The State also recognizes the vital role of taxpayers'
information and education to facilitate compliance with tax laws and regulations and improve revenue
generation efforts. For this purpose, the State recognizes the need to create a specialized institution that will
provide the appropriate education, training skills, and values to tax collectors and administrators and will
disseminate tax laws, regulation, guidelines and relevant information to the public.

c. PRESIDENTIAL DECREE No. 464 June 1, 1974

ENACTING A REAL PROPERTY TAX CODE

WHEREAS, this country cannot progress steadily if its local governments are not potent political subdivisions
contributing their proportionate shares to national progress;

WHEREAS, the past decade saw the passage of the Local Autonomy Act, the Barrio Charter, the
Decentralization Act and other pieces of legislation intended to make local governments financially self-reliant
and stable;

WHEREAS, it is very apparent that in spite of all these laws, local governments still find difficulty in providing
adequate funds with which to underwrite basic and essential public services within their respective areas of
responsibility;

WHEREAS, studies show that one of the main reasons behind this is the failure of local governments to fully
tap the income potentialities of the real property tax;

WHEREAS, to remedy the situation, there is an urgent and compelling need to upgrade assessment services
by updating assessment techniques, procedures and practices and thereby bring about equitable distribution of
the realty tax burden among real property owners throughout the country;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested
in me by the Constitution do hereby adopt, promulgate and decree, as it hereby adopted, promulgated and
decreed, as part of the law of the land, this decree entitled "The Real Property Tax Code", the context of which
follows:

CHAPTER I
GENERAL PROVISIONS

Section 1. Scope. This Code shall govern the appraisal and assessment of real property for purposes of
taxation by provinces, cities and municipalities, as well as the levy, collection and administration of real
property tax.

Section 2. Fundamental Principles. The appraisal and assessment of real property for taxation purposes shall
be guided by the following fundamental principles:

1) Real property shall be appraised at its current and fair market value;
 2) The appraisal of real property shall be uniform in each local political subdivision;

3) Real property shall be classified for assessment purposes on the basis of its actual use;

4) Real property shall be assessed on the basis of a uniform standard of value within each local
political subdivision;

5) In no case shall the appraisal and assessment of real property for taxation purposes and the
collection of the real property tax be let to any private person; and

6) The goal of property assessment shall be the equitable distribution of the tax burden.

d.) Republic Act No. 9178 November 13, 2002

AN ACT TO PROMOTE THE ESTABLISHMENT OF BARANGAY MICRO BUSINESS ENTERPRISES

(BMBEs), PROVIDING INCENTIVES AND BENEFITS THEREFOR, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled.

PRELIMINARY PROVISIONS

Section 1. Short Title This Act shall be known as the "Barangay Micro Business Enterprises (BMBE's) Act of
2002."

Section 2. Declaration of Policy It is hereby declared to be the policy of the State to hasten the country's
economic development by encouraging the formation and growth of barangay micro business enterprises
which effectively serve as seedbeds of Filipino entrepreneurial talents, and intergranting those in the informal
sector with the mainstream economy, through the rationalization of bureaucratic restrictions, the active granting
of incentives and benefits to generate much-needed employment and alleviate poverty.

e.) REPUBLIC ACT NO. 10021

AN ACT TO ALLOW THE EXCHANGE OF INFORMATION BY THE BUREAU OF INTERNAL REVENUE OF

TAX MATTERS PURSUANT TO INTERNATIONALLY-AGREED TAX STANDARDS, AMENDING SECTIONS
6(F), 71 AND 270 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Title. - This Act shall be known as the "Exchange of Information on Tax Matters Act of 2009".

Section 2. Declaration of Policy. - It is the declared policy of the State to promote and pursue a tax
environment that contributes in sustaining a favorable international investment climate and instills confidence in
the adequacy and capacity of the country's tax administration to comply with its commitments under existing
international conventions or agreements on tax matters.

Pursuant to this declared policy, the government shall comply with or commit to the internationally-agreed tax
standards required for the exchange of tax information with its tax treaty partners to help combat international
tax evasion and avoidance and to help address tax concerns that affect international trade and investment. The
government shall likewise adopt measures and procedures to enhance cooperation with other countries in the
efficient collection of taxes, consistent with the international understanding to ensure the payment of taxes due
the respective taxing jurisdictions of the treaty partners.

2.b. Inthis article, we step back from the politics of it all and look at the current state of the
Philippines tax system. We focus on 5 issues which, to our mind, demonstrate best the
present deficiencies (or "structural weaknesses") of our tax system. In each, we show how
the current state of things deviates from well-known principles of taxation.

1. We have some of the highest income tax rates in the region.

Principle of taxation: High income taxes could discourage firms from producing more goods
or employees from working more hours. Hence, a good tax system makes sure that income
tax rates are not too high so as to discourage economic activity.

The problem: The Philippine tax system currently has some of the highest income tax rates
in this region. Compared to our major ASEAN counterparts, our corporate income tax is the
highest at 30%, a rate that "turns off" foreign investors who prefer to do business in our low-
tax neighbors.

Meanwhile, our maximum personal income tax rate of 32% is not the highest (its 35% in
Vietnam and Thailand), but we certainly dont want the government to eat away P32 for
every P100 earned by ordinary workers.
2. Too many goods and services are not being taxed.

Principle of taxation: A good way to reduce high tax rates is to expand the tax base, or the set of
goods and services which are taxed. The same (or even a larger) tax revenue can be collected
as before by imposing a lower tax rate on as many goods and services as possible.

The problem: In the Philippines, too many goods and services are exempted from taxes. For
instance, our value-added tax (VAT) law has 59 lines of exemptions more compared with the
VAT laws of our neighbors. The plethora of exemptions partly explains the relatively low tax
revenues we get. If only fewer goods were exempted or if only the exemptions were limited to
essential goods like raw food and medicines then the government could boost its revenues.

ADVERTISEMENT
3. Too many people are evading the tax system.

Principle of taxation: Another way to widen the tax base (in order to reduce tax rates) is to
tax as many people as possible. But the more people can get away with not paying their
taxes (or otherwise hide their income), the more difficult it will be to reduce tax rates.

The problem: Too many Filipinos can get away with not paying taxes. Obviously, there are
the tax evaders who are nearly impossible to catch and prosecute given our overly strict
bank secrecy law. In addition, "compensation earners" or those who earn salaries or wages,
end up paying more in taxes than the self-employed and the professionals (who have some
ability to hide part of their incomes). As a result, from 2010 to 2013, compensation earners
earned 60% of total incomes in the country but paid as much as 80% of all taxes.

4. Our tax system is too complicated.

Principle of taxation: The rules of the tax system should be as plain and simple as possible.
Not only will it be easier for taxpayers to understand their liabilities and to comply, but it will
also minimize the administrative costs of collection.
The problem: Our tax system is overly complicated and burdensome, especially for small
taxpayers. A 2015 study found that the Philippines ranked 127th out of 189 economies in
terms of ease of paying taxes (we ranked below Iraq and Afghanistan). Another study
revealed that the complexity of tax regulations and our high tax rates are some of the
most problematic factors for doing business in the country.

5. Rich Filipinos are not paying their fair share of taxes.

Principle of taxation: Finally, a good tax system levies more taxes to people who can afford to
pay more. One way to do this is to make the rich pay for a larger fraction of their income than
the poor; that is, by making the tax system "progressive."

The problem: The Philippine tax system is only "mildly" progressive, and even borderline
"regressive" in many instances, poor Filipinos effectively pay a larger fraction of their income
in taxes.

For example, tax rates on dividends and other forms of capital incomes (which are earned
mostly by the rich) are so low compared to the tax rates of ordinary workers. Increasing these
capital income tax rates will certainly help make the rich pay more in taxes.

Also, taxes on petroleum products have been constant for many years. Aside from being a lost
opportunity to combat pollution and congestion, its also a lost opportunity to tax the rich who
consume petroleum products more.
https://www.rappler.com/thought-leaders/159027-philippine-tax-system-problems-effects-filipinos

3.

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA)

POLICIES:

The National Economic and Development Authority

 CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall ensure that all socio-economic programs and activities of the
government shall be programmed within the context of well-formulated and consistent long, medium, and short-
term development plans and policies to promote both the growth of the economy and the equitable distribution
of the benefits of such growth to the members of society. To this end, it is recognized that the formulation of the
required socio-economic development policies and plans is a vital process that calls for the participation of the
various government agencies and private sector institutions and individuals concerned, both on national,
regional, and local levels. This process of policy and plan formulation, however needs to be coordinated closely
by a central government agency to ensure consistency of these plans and policies and optimal use of the
nation's scarce resources.