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    Taxation During The Commonwealth Period

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    Mikylla Barcellano Punay
    The document discusses taxation in the Philippines during the Commonwealth period from 1935 to 1946. It outlines changes made to the taxation system during this time including increases in income tax rates and the introduction of a national internal revenue code. The analysis section notes that the tax system placed most of the burden on the lower class while benefiting the upper class and politicians.

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    Taxation During The Commonwealth Period

    Uploaded by

    Mikylla Barcellano Punay
    59 views8 pages
    The document discusses taxation in the Philippines during the Commonwealth period from 1935 to 1946. It outlines changes made to the taxation system during this time including increases in income tax rates and the introduction of a national internal revenue code. The analysis section notes that the tax system placed most of the burden on the lower class while benefiting the upper class and politicians.

    Original Description:

    Reading in Philippines History

    Original Title

    Taxation-During-the-Commonwealth-Period

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    The document discusses taxation in the Philippines during the Commonwealth period from 1935 to 1946. It outlines changes made to the taxation system during this time including increases in income tax rates and the introduction of a national internal revenue code. The analysis section notes that the tax system placed most of the burden on the lower class while benefiting the upper class and politicians.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    59 views8 pages

    Taxation During The Commonwealth Period

    Uploaded by

    Mikylla Barcellano Punay
    The document discusses taxation in the Philippines during the Commonwealth period from 1935 to 1946. It outlines changes made to the taxation system during this time including increases in income tax rates and the introduction of a national internal revenue code. The analysis section notes that the tax system placed most of the burden on the lower class while benefiting the upper class and politicians.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    CHAPTER IV: Social, Political, Economic, and Cultural

    Issues in the Philippines

    Taxation During the


    Commonwealth Period
    I. Introduction
    • Taxation is the process by which the sovereign,
    through its law making body, races revenues use to
    defray expenses of government.

    • The Commonwealth of the Philippines refers to a


    period in Philippine history from 1935 to 1946.
    During this time, the Philippines was a self-governing
    territory under the sovereignty of the United States.
    II. Changes in Taxation System
    1936: Income tax rates increased, surtax added for
    high earners.

    1937: Cedula tax abolished (progressive move),


    residence tax imposed on all citizens 18+
    (regressive move).
    II. Changes in Taxation System
    • 1939: The Commonwealth government drafted
    National Internal Revenue Code
    1. Normal tax of 3 percent and the surtax on income
    was replaced by a single tax at a progressive rate.
    2. Personal exemptions were introduced.
    3. Corporation income tax was slightly increased by
    introducing taxes on inherited estates or gifts
    donated in the name of dead persons.
    II. Changes in Taxation System
    4. The cumulative sales tax was replaced by a single
    turnover tax of 10% on luxuries.
    5. Taxes on liquors, cigarettes, forestry products,
    and mining were increased.
    6. Dividends were made taxable.
    III. Analysis of the New System
    The lower class bore most of the burden, while the
    u p p e r cl a s s, e l i t e, a n d p o l i t i c i a n s b e n e f i t e d .
    A gr i c u l t u re wa s favo re d w i t h l o w t a xe s, w h i ch
    discouraged industrial investment. Taxation didn't help
    diversify the economy or guide development.
    IV. Taxation During World War II
    The Japanese kept their existing system and
    exempted their own supplies. Foreign trade decreased,
    a n d m a i n t a x s o u rc e s s h i f t e d t o a mu s e m e n t s,
    manufactures, etc. It was challenging to collect
    taxes during the war. They used National Sweepstakes
    and government bonds to raise more funds, and
    military notes were issued to cover war costs.
    V. Conclusion
    Despite attempts at reform, tax system remained
    unfair and ineffective in promoting economic
    development.

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