AGRARIAN REFORM

Why do we need Agrarian Reforms

 ALMOST HALF OF THE POPULATION IS EMPLOYED

IN THE AGRICULTURAL SECTOR
 MOST CITIZENS LIVE IN RURAL AREAS
 THROUGH REFORMS IT CAN GAIN MORE FROM
AGRICULTURAL SECTOR
 TO ADDRESS POVERTY IN THE COUNTRY
 UPLIFT THE LIVES OF FILIPINOS
AGRARIAN REFORM

 Itis centered on the relationship between

production and the distribution of land
among farmers.
 Itis also focused on the political and
economic class character of the relations of
production and distribution in farming
related enterprises.
AGRARIAN REFORM VS LAND REFORM
Land Reform Agrarian Reform

• Redistribution of land from • Comprise of not only the

government and private sources distribution of land and the
to the landless development of institutional
• Reform of tenure and provision supports to make farm work
of production and service successful but also
structure enhancement of the
economic, social and political
relations that concerns the
land and its users.
• Change of the Agrarian
Structure
Source: Fuwa 2010
LANDOWNERSHIP IN THE PHILIPPINES
UNDER SPAIN
 Spanish brought the pueblo agriculture where rural
communities were organized in to a pueblo and given land
to cultivate.
 Filipinos are not allowed to own a land , it was owned by
Spain
 Filipinos were assigned to cultivate and paid their
colonial tributes to the Spanish authorities in form of
agricultural products.
Law of Indies

 The Spanish crown awarded tracts of land to the ff;

 A. religious orders
 B. repartamientos for Spanish military as a reward for
their service
 C.Spanish encomienderos who were given the
encomienda
 Filipinos work on the land and paid their tribute to the
encomiendero.
 Filipinos were not given the right to own a land and just work for
the Spaniards to have a share of crop and pay tribute.
 The encomienda system was unfair and abusive as “compras y
vandalas”
 A compras y vandalas system was practiced wherein tillers were
made to compulsory sell at a very low price or surrender their
agricultural harvests to Spanish authorities where encomienderos
can resell it for a profit.
 Filipinosin the encomienda were also required to render
service to their encomiederos that are unrelated to farming.
 Hacienda system replace encomienda system later on
 In 1860’s enacted a law ordering landlords to register their
landholdings
 Lands were claimed and registered in other people’s names
and many peasant families were driven out or force to come
under the power of the people who claim rights to the land.
Revolt : Agrarian in nature
Before Filipinos had communal
ownership of land.
Philippine revolution + freedom =
owning a land
LANDOWNERSHIP IN THE PHILIPPINES
UNDER AMERICANS
 Landlessness as the issue of social unrest
 Several land policies were introduced
 Distribute ownership to a large number of tenants and
farmers.
 The Philippine Bill of 1907
 Act no.496 or the land registration act
 Homestead program
The Philippine Bill of 1902

 Provided regulations on the disposal of public

lands.
A private individual may own 16 hectares of land
while corporate landholders may have 1,024
hectares.
Act no.496 or the land registration act

 Introducedthe Torrens system to address the

absence of earlier records of issued land titles and
conduct accurate land surveys.

 Systemof land registration, issuing a certificate

of ownership
Homestead program

 Allowstenants to enter into an agricultural

business by acquiring a farm of at least 16
hectares.
 Therewas no limit to the size of landholdings people
could possess and accessibility of possession was
limited to those who could afford to buy ,register and
acquired fixed property titles.
 Many were force to return to tenancy and wealthy
Filipino hacienderos purchased or forcefully took over
lands from farmers who could not afford to pay their
debts.
 Land placed under tenancy led to a widespread peasants
uprising.
 PresidentQuezon place a program that focused on the
purchase of haciendas which were divided and sold to
tenants.
 Creation of the NARIC –NATIONAL RICE AND CORN
CORPORATION to assign public defenders to assist peasant
in court battles for their rights to the land

 Court of Industrial Relation to exercise jurisdiction over

disagreements arising from landowner-tenant relationship.
 The homestead program also continue through the
NATIONAL LAND SETTLEMENT ADMINISTRATION
POST-WAR INTERVENTION TOWARDS
AGRARIAN REFORM
 President Roxas passed the R.A no.34 to establish a 70-30
sharing arrangement between tenant and landlord.
 Attempted to redistribute hacienda lands
 PresidentQuirino establish the LASEDECO or the land settlement
development corporation to accelerate and expand the
resettlement program from peasants.
 NARRA- National Resettlement and Rehabilitation Administation
under Magsaysay
National resettlement and rehabilitation
administration

To give resettlement program and to

distribute agricultural lands to the
landless tenants and farmers.
 R.Ano, 1199 or the agricultural tenancy act was
passed to govern the relationship between
landholders and tenant farmers, protecting the
tenurial rights of tenants and enforced tenancy
practices
 Courtof agricultural relations was created to
improve tenancy security, fix land rental and resolve
dispute between landowners and peasant
organization
 ACCFA- Agricultural tenancy was also created to
provide ware house facilities and assist farmers
to market their products.
 Agricultural
and industrial bank to provide
easier terms in applying for homestead and
other farmlands
 NARRA accelerated the government’s resettlement
program
 Convince members of Huk’s to resettlement areas
 Thelanded elite did not cooperate and they criticized
the programs.
 Thesituation of the farmers remained dire because of
government lack of funds
 Macapagal- Agricultural land reform code or R.A no. 3844
 Thiscode abolished share tenancy in the Philippines and
prescribe a program to convert tenant-farmers to lessees and
later on owner-cultivators.
 Aimed to free tenants from tenancy and emphasize owner
cultivator ship and farmer independence., equity, productivity
improvement and public land distribution.
 Congress did not make any effort to come up will a separate
bill to funds its implementation.
AGRARIAN REFORM UNDER MARCOS
 Presidential decree no.27 or the code of agrarian reform of
the Philippines became the core of agrarian reform during the
Marcos regime.
 Operation lad transfer -7 hectares on rice and corn lands
 Masagana 99 farmers were able to borrow from banks and
purchase 3 hectare plots of land
 Many methods were employed by the elite to find way to
maintain their power and dominance.
POST 1986 AGRARIAN REFORM

 July 22,1987- presidential proclamation 131 and executive order

299-land reform program
 1988- CARL COMPREHENSIVE AGRARIAN REFORM LAW with a name
CARP
 This enables redistribution of agricultural lands to tenant-farmers
from landowners.
 CARP accomplish only 22.5 % of land distribution in 6 years with
congress dominated by elites.
 Controversy about Hacienda Luisita
 Under the time of President Ramos CARP was
implementation was speeded in order to meet the 10
year tie frame.
 By1996 ,DAR distributed only 58.25% of the total area
targeted to be covered by the program.
 Toaddress the lacking funding and the dwindling tome
for the implementation of CARP, Ramos signed R.A No.
8532 in 1998 to amend CARL and extend the program
for 10 years.
CARPER
 CARP expired last 2008 leaving 1.2 million farmers beneficiaries
and 1.6 million hectares of agricultural lands to distributed to
farmers.
 Arroyo signed R.A. No. 9700 or CARPER amended the law to
extend for 5 years more..
 From 2009-2014 CARPER has distributed a total of 1 million
hectares of land to 900,000 farmer beneficiaries.
 After 27 years of land reform 500,000 hectares of land remain
undistributed.
 DAR and DENR to fulfill CARP and CARPER
 PROBLEM? The powerful landed elite and the ineffectual
bureaucracy of the Phil. Government.
PHILIPPINE TAXATION
Taxation

Itis the process by which the

sovereign , through its lawmaking
body, raises revenues used to defray
expenses of government.
Pre-Colonial Philippines

• Barangay was the largest political group headed

by a chieftain or datu
• Some degree of stratification: Freemen, serfs, and
slaves
• Population is sparse, located mainly on the coast
and rivers and no large farms
• Land was generally communal and power was
commanded over labor and not on over land
Source: Fuwa 2000
Taxation in Spanish Philippines

 Payment of tributes
 System of reduccion by creating pueblos
 Ecomienda system handle by the ecomienderos
 Exempted to pay the tributes are the ff;
principals, alcaldes, gobernadores, cabeza de barangay,
soldiers and members of the civil guard, government
official and vagrants
 Manila- Acapulco trade
 Situado real delivered from the Mexican treasury to the
Philippines
 In1884 tribute was replaced by poll tax through a
certificate of identification called the cedula
 Payment of cedula is progressive and according to income
categories
 Revenue collection increased and become main source of
gov. income
 Two direct taxes were added in 1878 the urbana and
industria

 Urbana is tax on the annual rental value of an urban real

estate
 Industria is a tax on salaries, dividend and profits.
 Indirecttaxes such as customs duties were imposed on
exports and imports
 Polo system were introduced
 Male were required to provide labor for 40 days reduced 15
days in 1884
 Or pay the fallas of 3 pesos per annum
Taxation under Americans
 Urbana was replaced by land tax- tax levied on both urban and rural
rea estates.
 Tax evasion was prevalent among the elites
 Internal revenue law of 1904 was passed that prescribe ten major
sources of revenue;
1. license taxes on firms dealing in alcoholic beverages and
tobacco
2. excise taxes on alcoholic beverages and tobacco products
3. taxes on banks and bankers
4. document, stamp, taxes
5. cedula
 6. taxes on insurance and insurance
companies
7. taxes non forest products
8.miningconcessions
9. taxes on business and manufacturing
10. occupational licenses
 Cedula rate was fixed per adult male
 In1907 some provinces double the fee for cedula to
support the construction and maintenance of roads
 Industrial tax was based on the business
profitability it also imposed a percentage tax on
sales payable quarterly
 1913 Underwood-Simons Tariff Act was passed-
export taxes levied on sugar, tobacco and hemp
and copra were lifted
 Internalrevenue imposed taxes on mines, petroleum
products, dealers of petroleum products and tobacco

 In 1914 income tax was introduced

 Inheritance tax was created
 1932 national lottery was established to create more
revenue for the government
Taxation during the commonwealth
period
 Income tax rates were increased in 1936
 Income tax rates of corporation were also increased
 In 1937 the cedula tax was abolished
 In 1940 a residence tax was imposed on every citizen aged 18
years old and on every corporation.
 In 1939 the commonwealth government drafted the national
internal revenue code introducing major changes in the new tax
system
NATIONAL INTERNAL REVENUE CODE
 The normal tax of three percent and the surfax on income was
replaced by a single tax at a progressive rate.
 Personal exemptions were reduced
 Corporation income tax was slightly increased by introducing
taxes on inherited estates or gifts donated in the name of dead
person
 The cumulative sales tax was replaced by a single turnover of 10
% on luxuries
 Taxes on liquors ,cigarettes, forestry products, and mining were
increased
 Dividends were made taxable
The Japanese Military administration

 Continued the system of tax collection introduced

during the Commonwealth
 Foreign trade fell and the major sources of taxation
came from amusements, manufacturers, professions
and business licenses.
 Duringthe war additional income of the government
were derived from the sales of the National
sweepstakes and sales of government bonds
Fiscal policy from 1946 to present
 During the time of Quirino new tax measures were passed
it includes higher corporate tax rates.
 Magsaysay, Garcia and Macapagal promise to study the tax
structure through the Tax Commission of 1959 by means of
R.A no. 2211
 From 1959-1968 Congress did not pass any tax legislation
 Indirect tax still contributed to three quarters of tax
revenues
 Omnibus tax law of 1969 did not increase the ratio of
income tax
 Collection of tax remain poor
 Under Marcos regime, tax system was still dependent to
indirect taxes which made up of 70% of the total tax
collection.
 Taxesgrew at an average annual rate of 15% and
generated a low tax yield.
 Shareof the actual tax collection in the gross domestic
product and predictable taxable capacity was at a low
10.7%
1986 Tax Reform Program

 The aim was to improve the responsiveness of the tax system,

promote equity by ensuing that similarly situated individuals
and firms bear the same tax burden, promote growth by the
withdrawing or modifying taxes that reduce incentives to
work or produce, and improve tax administration by
simplifying the tax system and promoting tax compliance.

 Introduced VAT
RAMOS ADMINISTRATION

 Introduced the Tax Reform Program which was implemented to;

1. Make the tax system simple with reasonable tax rates
2. minimize tax avoidance
3. encourage payments by increasing tax exemption levels,
lowering the higher tax rates and simplifying procedures.
4. rationalize the grant of tax incentives
 In2005 E-VAT was signed into law through
Republic Act 9337
 In 2010 Aquino made adjustment on excise
tax on liquor and cigarettes or the Sin tax
reform
 Train law under Duterte’s administration