AGRARIAN REFORM IN THE PHILIPPINES Agrarian reform Defined is the transfer of control and ownership of agricultural land to the actual tillers. LAND REFORM vs. AGRARIAN REFORM Land Reform- Improvement of the farmer's relationship to the land that they cultivate. Agrarian Reform- Concerned is, the total development of farmers on economic, social and political transformation. HISTORY OF AGRARIAN REFORM IN THE PHILIPPINES By the Spanish Land during the Spanish Era were owned and controlled by the friars. The land distribution was done in the form of rewards to the peasants because of their loyalty and faithful to the Spanish officials. By the Americans Land that owned by the Friars were sold to those families who can afford to buy big tracts of lands which later on became haciendas. Macapagal Administration Agricultural Land Reform Code (RA 3844) was a major advancement of land reform in the Philippines and was enacted in 1963 under President Diosdado Macapagal. It abolished tenancy and established a leasehold system in which farmers paid fixed rentals to landlords, rather than a percentage of harvest. It also established the Land Bank of the Philippines to help with land reform, particularly the purchase of agricultural estates for division and resale to small landholders, and the purchase of land by the agricultural lessee. Marcos Administration The Agricultural Land Reform Code becomes Code of Agrarian Reform under RA.6389 in 1971 Corazon . Aquino Administration Implementation of Comprehensive Agrarian Reform Program as stated in RA.6657 COMPREHENSIVE AGRARIAN REFORM PROGRAM. It is the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farm workers who are landless, irrespective of tenurial arrangement, to include to totality of factors and support services designed to lift the economic status of the beneficiaries and all other arrangements altemative to the physical redistribution of lands, such as production or profit-sharing, labor administration, and the distribution of shares of stock which will allow beneficiaries to receive a just share of the fruits of the lands they work. RA>6657 — Comprehensive Agrarian law serves as the basis of CARP. Comprehensive Agrarian Reform Law Republic Act No.6657, called Comprehensive Agrarian Reform Law was signed by Corazon Aquino on June 10, 1988. The Comprehensive Agrarian Reform Law is responsible for the implementation of the Comprehensive Agrarian Reform Program (CARP).SSALIENT OR NOTICEABLE FEATURED OF CARP Coverage Ternlooies Schedule or prorites Retention its Phases Modes of acquistion Exclusion - exemption and deferment ‘Scope of Agrarian Reform ‘Al public and private agicultual ands as provided in proclamation No.131 Gnstuting 1 Compretensive Agrarian Rotorm Program) and executive order No.229 (implementation of CCAR) including othe lands ofthe puble domain suitable for agree, ‘TERMINOLOGIES > Farmers It refers to @ natural person whose primary concern or livelihood is cultivation of land or the production of agricultural crops, either by himself, or primarily with the assistance of his immediate farm household, whether the land is owned by him, or by another person under leasehold or shared tenancy agreement or arrangement with the ‘owner thereof. > Farm Worker- A natural person who renders service for value as an employee or labor in agricultural land enterprise o fatm regardless of whether his compensation is paid on a daily, weekly, monthly or pakyaw basis, > Just Compensetion- This is intended to fully indemnify the owner of the land for the loss. he has sustained as a result of the taking. The measure of this compensation is not the government's gain but the land owner's loss in fullness and faimess of the property taken, > Regular Farm worker- Also a natural person who is employed on a permanent basis by an agricultural enterprise or farm. v Seasonal Farm worker- A natural person who is employed on recurrent, periodic, or intermittent basis by and agricultural enterprise. > Other Farm worker- Is a farm worker who does not fall under any farm workers mentioned above. ‘Schedule of Implementation The distribution of all lands covered by this Act shall be implemented immediately and ‘completed within ten (10) years from the affectivty. Retention Limit Set a five hectares plus three hectares for each qualified child of the landlord. Qualified cchild ~ means that he/she must be at least 15 years old as of June 15, 1988 and directly involved in tilling or “managing” the farm in question. The right to choose the area to be retained, which shall be compact or contiguous, shall pertain, to the landowner: Provided, however, that is case the area selected for retention by the landowner is tenanted, the tenant shall have the option to choose whether to remain therein or be a beneficiary in the same or another agricultural land with similar or comparable features. ‘THE PROGRAM IS DEVIDED INTO THREE PHASES: > PHASE 1- Covers around 1.45 million hectares was to be devoted to the completion of the Marcos land reform, the reform of idle and abandoned lands, and lands voluntarily offered for sale the owners, and the reform of states foreclosed by government financialinstitutions and those acquired by the Presidential Commission on Good Government(PCG6). » PHASE 2. Covers about 7.4 million hectares was to be devoted to reforming all public agricultural lands to be opened for new development and resettlement, as well as private land 50 hectares and above, PHASE 3- Divided into two -sub phases and has @ combines coverage of 1.35 millon hectares. Phase 3-A was supposed to cover private agricultural lands of 24 to 50 hectares. Phase 3-B is supposed to cover private farmlands of areas above the retention limit up to 24 hectares. Gs DIFFERENT MODES OF LAND ACQUISITION AND REDISTRIBUTION For Public Lands, which comprise more than half of the target land reform, distribution is done through either Free Patents for Alienable and Disposable (A & D) lands, Certificates od Land Ownership Awards (CLOAS) For Resettlement Sites, or stewardship contracts for public lands covered by the integrated Social Forestry program (ISFP) For Private Lands, Compulsory acquisition (CA) is the main mode to be used in expropriating land whose owners did not voluntary offer them for land reform. CARP was originally conceived to need around p221 billion which covers both the land acquisition cost and the package of support infrastructure, both physical and social. CARP defers land redistribution of commercial farms, defined as private lands over five hectares devoted to livestock, poultry, aquaculture including salt beds. Fishponds are prawn farms, fruit farms, orchards, vegetable and cut-llower farms, and cacao, coffee and rubber plantations. These will bbe subject to expropriation only after 10 years from June 15, 1988 EXEMPTIONS AND EXCLUSIONS Lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves shall be ‘exempt from coverage of this Act. DISTRIBUTION LIMIT No qualifies beneficiary may own more than three (8) hectares of agricultural land. ‘TRANSFERABILITY OF AWARDED LANDS Lands acquired by beneficiaries under this act may not be sold, transferred or conveyed except through hereditary succession, or to the government, ar to the LBP, or to ‘other qualifies beneficiaries for a period of ten (10) years: provided, however, that the children or the spouse of the transfer shall have a right to repurchase the land from the government or LBP within a period of two (2) years. Due notice of the availability of the land shall be given by LBP to the Barangay Agrarian Reform Committee (BARC) of the barangay where the land is situated. The provincial Agrarian Coordinating Committee (PARCCOM), as herein provided, shall, in turn, be given due notice thereof by the BARC. The Presidential Agrarian Reform Council (PARC) shall be composed of the President of the Philippines as Chairman, the Secretary of Agrarian Reform as Vice-Chairman and the following as members: Secretaries of the Departments of Agriculture; Environment and Natural Resources; Budget and Management; Local Government; Public Works and Highways; Trade and industry; Finance; Labor and Employment; Director-General of the National Economic and Development Authority; President, Land Bank of the Philippines; Administrator, National Irrigation Administration; and three (3) representative of affected landowners to represent Luzon, Visayas and Mindanao: Provided, that one of them shall be from the culturalcommunities. COMPREHENSIVE AGRARIAN REFORM PROGRAM TODAY Lands are still need to be distributed and at present, the government is still implementing its program by the implementation on CARPER. According to CARPER or ‘Comprehensive Agrarian Reform Program with Extension Reform (RA 9700), the welfare of the landless farmers and farmworkers will receive the highest consideration to promote social justice and to move the nation toward sound rural development and industrialization, and the establishment of owner cultivator ship of economic-size farms as the basis of Philippine agriculture. CONSTITUTION ‘ A constitution is defined as "the fundamental law or basis of | goverment. It is established by the people, in the original sovereign capacity, to promote their own happiness, and permanently secure their rights, property, independence, ‘and common welfare. It is a system of fundamental laws or principle for the government of @ nation, society, corporation, or the aggregetion of viduals. itis @ written instrument by which the fundamental powers of the government are established, limited, limited, and defined and by which these powers are distributed ‘among the several departments or branches for their safe and useful exercise for the benefit of ‘the people. Generally itis that body of rules and maxims in accordance with which the powers of sovereignty are habitually exercised. ‘The constitution contains as a set of fundamental principles or established precedents according to which state or other organization is governed, thus, the word itself means to be a part of @ whole, the coming together of distinct entities into one group, with the same principles and ideals. These principles define the nature and extent of the government. Purpose of the Constitution Prescribe a framework of system of government and assign the different departments their respective powers and duties. ¥ Establish certain fixed first principles on which government is founded. ¥ Promote public welfare which involves the safety, prosperity, health and happiness of the people. ¥ Inthe Philippines, the purpose of the con: ition was stated at the preamble. Classifications of Constitution Written and Unwritten Constitution ‘A Whitten Constitution is one in which most provisions are embodied in a single formal written instrument or instruments. It is a work of conscious art and the result of a deliberate effort to lay down a body of fundamental principles in which government shall be recognized and conducted,‘An Unwritten Constitution is one which is entirely the product of political evolution, consisting largely of a mass customs, usage and judicial decisions together with a smaller body of statutory enactments of a fundamental character, usually bearing different dates. ‘Cumulative and Conventional ‘A constitution is cumulative or evolved when it has its origin mainly in custom, common law principles, decision of courts. Itis the product of historical evolution and growth rather than of deliberate and formal enactment. It has no formal starting point, is not struck off at a specific date, and it changes by gradual accretion rather than formal legal process. ‘A conventional or enacted is one which has been formulated by 2 constitutional assembly or promulgated. It is struck-off at a definite time and place. Rigid and Flexible ‘A Rigid Constitution is one that can be amended only by a formal and usually difficult process, ‘A Elexible Constitution is one that can be altered by the same body that makes ordinary laws of the state, Evolution of the Philippine Constitution ‘The Constitution of the Philippines, the supreme law of the Republic of the Philippines, has been in effect since 1987. There were only three other constitutions that have effectively governed the country: the 1935 Commonwealth Constitution, the 1973 Constitution, and the 1986 Freedom Constitution. However, there were earlier constitutions attempted by Filipinos in the struggle to break free from the colonial yoke. 1897: Constitution of Biak-na-Bato The Constitution of Biak-na-Bato was the provisionary Constitution of the Philippine Republic during the Philippine Revolution , and was promulgated by the Philippine Revolutionary Government on 1 November 1897. The constitution, borrowed from Cuba, was written by Isabel Artacho and Felix Ferrer in Spanish, and later on translated in Tagalog. ‘The organs of the government under the Constitution were: (1) the Supreme Council, which was vested with the power of the Republic, headed by the president and four department secretaries: the interior, foreign affairs, treasury, and war; (2) the Consejo Supremo de Gracia Y Justicia (Supreme Council of Grace and Justice), which was given the authority to make decisions and affirm or disprove the sentences rendered by other courts and to dictate rules for ‘the administration of justice; and (3) the Asamblea de Representatantes (Assembly of Representatives)which was to be convened after the revolution to create a new Constitution land to elect a new Council of Government and Representatives of the people, The Constitution of Biak-na-Bato was never fully implemented, since a truce, the Pact of Biak-na Bato, was signed between the Spanish and Philippine Revolutionary Army. The separation of the Philippines from the Spanish monarchy and their formation into an independent state with its government called the Philippine Republic has been the end sought by the Revolution in the existing war, begun on the 24th of August, 1896; and therefore, in its name and by the power delegated by the Filipino people, interpreting faithfully their desires and ambitions, we the representatives of the Revolution, in a meeting at Biak-na-Bato, November 1, 1897, unanimously adopted the following articles for the constitution of the State, 1899; Malolos Constitution After the signing of the truce, the Filipino revolutionary leaders accepted a payment from Spain and went to exile in Hong Kong. Upon the defeat of the Spanish to the Americans in the Battle of Manila Bay on 1 May 1898, the United States Navy transported Aguinaldo back to the Philippines. The newly reformed Philippine revolutionary forces reverted to the control of‘Aguinaldo, and the Philippine Declaration of Independence was issued on 12 June 1898, together with several decrees that formed the First Philippine Republic. The Malolos Congress was elected, which selected a commission to draw up a draft constitution on 17 September 1898, which was composed of wealthy and educated men, The document they came up with, approved by the Congress on 29 November 1898, and promulgated by Aguinaldo on 21 January 1899, was titled ” The Political Constitution of 1899" and written in Spanish. The constitution has 39 articles divided into 14 titles, with eight articles of transitory provisions, and a final additional article. The document was pattemed after the Spanish Constitution of 1812, with influences from the charters of Belgium, Mexico, Brazil, Nicaragua, Costa Rica, and Guatemala and the French Constitution of 1793. According to Felipe Calderon, main author of the constitution, these countries were studied because they shared similar social, political, ethnological, and governance conditions with the Philippines. Prior constitutional project in the Philippines also influenced the Malolos Constitution, namely the Kartlya and the Sanggunian-Hukuman, the Charter of laws and morals of the Katipunan written by Emilio Jacinto in 1896; the Biak-na-Bato Constitution of 1897 planned by Isabelo ‘Artacho; Mabini's Constitutional Program of the Philippine Republic of 1898; the provisional constitution of Mariano Ponce in 1898 that followed the Spanish constitutions; end the autonomy projects of Paterno in 1898, 1935: The Commonwealth Constitution It is worth mentioning that after the Treaty of Paris, the Philippines was subject to the power of the United States of America, effectively the new colonizers of the country. From 1898 to 1901, the Philippines would be placed under military government until a civil government ‘would be put into place. Two acts of the United States Congress were passed that may be considered to have qualities of constitutionality. First was the Philippine Organic Act of 1902, the first org {or the Philippines Islands that provided for the creation of a popularly elected PI Assembly. The act specified that legislative power would be vested in a bicameral legislature composed of the Philippine Commission as the upper house and the Philippine Assembly as the lower house. Key provisions of the act included a bill of rights for Filipinos and the appointment ‘of two non-voting Filipino Resident Commissioners of the Philippines as representative to the United States House of Representatives. The second act functioned as a constitution was the Philippine Autonomy Act of 1916, commonly referred to as “Jones Law”, which modified the structure of the Philippine government through the removal of the Philippine Commission, replacing it with a Senate that served as the upper house and its members elected by the Filipino voters, the first truly elected national legislature. It was also this act that explicitly declared the purpose of the United States to end their sovereignty over the Philippines and recognize Philippine independence as soon as stable government can be established. In 1932, with the efforts of the Filipino Independence mission led by Sergio Osmefia and Manuel Roxas, the United State Congress passed the Hare-Hawes-Cutting Act with promise of granting Filipinos’s independence. The bill was opposed by Senate President Manuel L. Quezon and consequently, rejected by the Philippine Senate. By 1954, another law, the Tydings-McDuffie Act, also known as the Philippine Independence Act, was passed by the United States Congress that provided authority and defined mechanisms for the establishment of a formal constitution by a constitutional convention. The members of the convention were elected and held their first meeting on 30 July 1934, with Claro M. Recto unanimously elected as president. The constitution was crafted to meet the approval of the United States government, and to ensure that the United States would. live up to its promise to grant independence in the Philippines.1973: Constitutional Authoritarianism In 1965, Ferdinand E. Marcos was elected president, and in 1967, Philippine Congress passed a resolution calling for a constitutional convention to change the 1935 Constitution. Marcos won the re-election in 1969, in a bid boosted by campaign overspending and use of government funds. Elections of the delegates to the constitutional convention were held on 20 November 1970, and the convention began formally on 1 June 1971, with former President Carlos P. Garcia being elected as convention president. Unfortunately, he died, and was succeeded by another former president, Diosdado Macapagal. Before the convention finished its work, Martial Law was declared. Marcos cited a growing communist insurgency as reason for the Martial Law, which was provided for in the 1935 Constitution. Some delegates of the on-going constitutional convention were placed behind bars and others went into hiding or were voluntary exiled. With Marcos as dictator, the direction of the convention tured, with accounts that the president himself dictated some provisions of the constitution, manipulating the document to be able to hold on to power for as long as he could. On 29 November 1972, the convention approved its proposed constitution. ‘The 1987 Constitution The present Constitution consists of 18 articles and is excessively long. Some of its provisions are reproduction of the provisions of the 1935 and 1973 constitution. Some were related with minor and major revisions. The articles are; Article I- National Territory Article II- Declaration of Principles and States Policies Article Il- Bill of Rights Article IV- Citizenship Article V- Suffrage Article VI- Legislative Department Article VIl- Executive Department Article VIll- Judicial Department Article IX- Constitutional Commission Article X- Local Government Article XI- Accountability of Public Officers Article XIl- National Economy and Patrimony Article XIll- Social Justice and Human Rights Article XIV- Education, Science and Technology and Arts Article XV- The Family Article XVI- General Provisions Article XVII- Amendments and Revision Article XVIll- Transitory Provi‘The present Constitution established presidential form of government. It also restores Bicameral Congress of the Philippines. The 1987 constitution provided for a tripartite system of government, i, the Legislative, Executive, and the Judiciary. TAXATION History of Taxation In the course of Philippine history, the evolution and process of taxation must be Unveiled as to its foundation and purpose. The development and advancement of taxation through time differ in terms of its forms, collections, payment and penalty. In Pre- colonial phases, people bequeathed their share to. the barangay headed by its chieftain called “Datu’. It is. religiously presented through contributions called “handog” or “alay” (offer). This has been considered as a customary practice in rendering involvement and support to the government. During the Spanish Period, the nature of tax system connotes the requirement of transcription payment called tribute or “tributo”. This tax collection and imposition is paid whether in cash, in kind, or by personal servitude. The presence of this tax association became the enduring burden on the lives of the Filipino people for a considerable length of time. Personal Afterwards, the so called Cedula or what we commonly known now as the Community tax certificate (CTC) was introduced as a form of compulsory tax collection that shows evidence and proof of the sovereignty of an imperial government. They were compelled to support both colonial government and that of church organization. (Dery, 2006). Later, the coming of the Americans gave rise to the imposition of base residence tax system. Post war period marked the commencement of the withholding tax followed by the voluntary tax compliance program during the incumbency of Ferdinand Marcos’ regime. The conversion of the authoritarian form of government to a democratic kind of government cemented way to tax reform program, income taxation organization and value added tax. At present, the Expanded value added tax (E-VAT) and Electronic filing and payment system (EPFS) is available. The advent of innovation and technology, tax administrations, systems and collections were fortified by the presence of modernization and advancement of technology. Noture “TAXES are enforced proportional contributions from person and property, levied by the state by virtue of its sovereignty, for the support of government and for all public needs,” Taxation is the method by which these contributions are extracted. As unwelcome as taxation may be to the individual who has to part with some of his money as his share in the support of the government, itis stil as much better alternative to the only other method of raising revenues to defray public expenses. In the case of taxation, there is at least an effort to apportion the cost of the government among the people, according to their ability to pay and on the basis of as scientific a classification as possible,The importance of taxation derives from the unavoidable obligation of the government to protect the people and extend them benefits in the form of public projects and services. In exchange for these, the people are subjected to the reciprocal duty of sharing the expenses to be incurred therefor through the payment by them of taxes. The obligation to pay taxes is not based contract. It is a duty imposed upon the individual by the mere fact if his membership in the body politic and his enjoyment of the benefits available from such membership. Scope So pervasive is the power of taxation that it reaches even the citizen abroad and his income eamed from sources outside his state. In other cases, all income earned in the taxing state, whether by citizen or aliens, and all immovable and tangible personal properties found in its territory, as well as tangible personal property owned by persons domicile therein, are subject to taxing power. Exercise The power of taxation is inherent to the state. Primarily vested in the national legislature, it may now also be exercised by the local legislative bodies, no longer by virtue of a valid delegation as before but pursuant to a direct authority conferred by Article X, Section 5, of the constitution, which provides that “each local government unit shall have the power to create its own source of revenue and to levy taxes, fees and charges, subject to such guidelines and limitations as the Congress may provide, consistent with the basic policy of local authority Due Process and Taxation Like all government powers, taxation is subject to the requirements of due process. It has already been observed that taxes will not be allowed if they are confiscatory, except where they are intended precisely for destruction as instrument of police power. A tax, for example, that would claim 80 precent of a person’s net income would be clearly oppressive and could unquestionably be struck down as a deprivation of his property without due process of law. Equal Protection and Taxation Taxation is subject to the general requirements of the equal protection clause. Additionally, it is provided in the constitution that “the rule of taxation shall be uniformed and equitable.” Uniformity in taxation means that persons of things belonging to the same class shall be taxed at the same rate. Thus if cigarettes are classified into local and imported, there is observance of the uniformity rule if all local cigarettes are taxed at P'12.00 per carton, regardless of value, and all imported cigarettes are taxed at P20.00 per carton, also regardless of value. This should be distinguished from equality in taxation, which simply means that the tax shall be strictly proportional to the relative value of the property. Thus, even if two residential lots of equal area are taxed at the same rate, the resultant taxes would not be the same if one of the lots is in an exclusive neighborhood and the other lot cost less because itis in a cheaper locality. It is also provided that the rule of taxation shall be equitable. Equitable taxation connotes that taxes should be appropriated among the people according to their capacity to Pay. Double Taxation There is double taxation when additional taxes are laid on the same subject by the same taxing jurisdiction during the same taxing period for the same purpose. Thus, if a person’s properties are each taxed separately and thereafter all of them are again taxed, this time collectively, by the same taxing jurisdiction for the same purpose during the same taxing period, the second imposition would constitute double taxation.In Punzalan v. Municipal Board of Manila, the MBM as the defendant levied an additional tax of P25.00 on professionals practicing in Manila who are already paying the 50.00 occupation tax required under the Revised Internal Revenue Code. Punzalan, the petitioner challenged the second tax as double taxation and asked that it be annulled. The Supreme Gourte held against them, observing that the two taxes had been imposed by different jurisdiction, one by national government and the other by the city government. Public Purpose To sustain a tax, it is necessary to show that the proceeds are devoted to public purpose. Revenue derived from taxes cannot be used for purely private purpose or for the exclusive benefit of private persons. The more obvious illustrations of public purpose would, of course, be such projects as the construction of road and bridges, the establishment of schools, museums, parks and playground, the erection of public buildings, and the maintenance of government services in general, all if which inure to the direct benefit and enjoyment of the people. However, the mere fact that the tax will be directly enjoyed by private individuals does not make it invalid so long as some link to the public welfare is established. Thus, pensions paid for war veterans are sustainable on the ground that they will encourage emulation of their services by others. Unemployment relief, support for the handicapped, and care of the aged, scholarships for the poor and deserving students, prizes and other incentives for gifted citizens, are also allowed as this matters, if left unattended by the government are likely to create social problems that will affect the rest of the community ‘Tax Exemptions The constitutional exemption from taxes is provided for in Article VI, Section 28 (3), as follows: Chariteble institutions, churches, and parsonage or convents appurtenant thereto, mosques, nonprofit cemeteries, and ail lands, buildings, and improvements actually, directly, and exclusively used for religious, charitable or educational purposes shall be exempted from taxation. Exemption is granted religious and charitable institutions because they give considerable assistance to the State in the improvement of the morality of the people and the care of the indigent and handicapped. These are ministrant functions of the government wl however, itis not able to fully discharge. R.A. 10963 (TRAIN law) of the Philippines Republic Act Ne10963 or Tax Reform for Acceleration and Inclusion (TRAIN) law is enacted by the Senate and House of Representatives in Congress (.e. legislative), and is signed by the President[1] for compliance of all residents in the Philippines. The President has appointed Department of Finance for its effective implementation while the Bureau of Internal Revenue issues the implementing rules and regulations and advisories to provide details on and clarify the implementation of the changes introduced under the TRAIN. TRAIN is the first package of the Comprehensive Tax Reform Program (CTRP) aimed to redesign our tax system to be simpler, fairer, and more efficient for all, while also raising the resources needed to invest in infrastructure and Filipino people. Overall, thegovernment sees a lesser tax burden of the poor and the middle class. Through TRAIN, every Filipino contributes in funding mote infrastructure and social services to eradicate extreme poverty and reduce inequality towards prosperity for all. It addresses several weaknesses of the outdated National Internal Revenue Code (NIRC) which was adopted 20 years ago. Some problems encountered with this old tax law are (2) unfair and inequitable individual income tax system, (b) uncompetitive corporate taxation, (c) redundancy of non-transparent fiscal incentives resulting in incalculable revenues forgone (d) specific excise taxes that are not adjusted to inflation leading to revenue erosion (e.g. petroleum products), (6) low taxes for goods that impose a higher cost to society than what their prices show (i. alcohol, tobacco, unhealthy food), (f) well‘ntended laws that ironically abet tax evasion (ie. law on secrecy of bank deposits), and (g) complex rules that enable tax avoidance and make tax compliance difficult. In a nutshell, TRAIN relatively decreases the tax on personal income, estate, and donation, However, it also increases the tax on certain passive incomes, documents (documentary stamp tax) as well as excise tax on petroleum products, minerals, automobiles, and cigarettes. It also imposes new taxes in the form of excise tax on sweetened beverages: and non-essential services (i. invasive cosmetic procedures) and removes the tax exemption of Lotto and other PCSO winnings amounting to more than P10,000, Despite the good points of the TRAIN, several petitioners are against this reform and said it was not validly passed. According to Bayan Muna party-list Rep. Zarate, it violated the quorum requirement in Section 16 (2), Article VI of the 1987 Constitution and the requirement of a bill passed by Congress in Section 27, Article VI, among others. On the other hand, Laban Konsyumer, Inc. claimed that "the increase and/or imposition. of excise taxes on coal, LPG, diesel, and kerosene are clearly violative of the basic principles and inherent limitations on Philippine taxation. The said provisions of the TRAIN Law are Violative of the state and constitutional mandate for an equitable and progressive system of taxation, due process, and equal protection clause considering that the exorbitant excise taxes on these basic commodities stand to greatly impact and impose heavy financial burden on low- income and poor families.” They also pointed out that “a sound tax system must take into consideration the taxpayers’ ability to pay, and thus, a tax law which runs contrary to this principle is void for being unconstitutional.” Similarly, members of the Makabayan block from the House of Representatives, together with the National Union of Peoples’ Lawyers (NUPL), told the high court that the House of Representative leaders committed grave abuse of discretion for ratifying the bicameral conference committee report for TRAIN “despite the glaring lack of quorum. This was argued by Solicitor General Calida, saying that under the separation of powers, ‘courts to direct Congress how to do its work