TAXES.
Down to the year 1784 so unproductive were the Philippines to
the Spanish revenues, that the treasury deficit was supplied by an
annual grant of 250,000 dollars provided by the Mexican government. A
capitation tax was irregularly collected from the natives; also a
custom-house duty (almojarifango) on the small trade which existed,
and an excise (alcabala) on interior sales. Even to the beginning of
the present century the Spanish American colonies furnished the funds
for the military expenses of Manila. In 1829 the treasury became an
independent branch of administration. Increase of tribute-paying
population, the tobacco and wine monopoly, permission given to
foreigners to establish themselves as merchants in the capital,
demand for native and consumption of foreign productions, and a
general tendency towards a more liberal policy, brought about their
usual beneficial results; and, though slowly moving, the Philippines
have entered upon a career of prosperity susceptible of an enormous
extension.
The capitation tax, or tribute paid by the natives, is the foundation
of the financial system in the Philippines. It is the only direct
tax (except for special cases), makes no distinction of persons
and property, has the merit of antiquity, and is collected by a
machinery provided by the Indians themselves. Originally it was
levied in produce, but compounded for by the payment of a dollar
(eight reales), raised afterwards to a dollar and a quarter, and
finally the friars have managed to add to the amount an additional
fifty per cent., of which four-fifths are for church, and one-fifth
for commercial purposes.
The tribute is now due for every grown-up individual of a family, up
to the age of sixty; the local authorities (cabezas de barangay), their
wives and eldest or an adopted son, excepted. A cabeza is charged with
the collection of the tribute of his cabaceria, consisting generally
of about fifty persons. There are many other exceptions, such as
discharged soldiers and persons claiming exemptions on particular
grounds, to say nothing of the uncertain collections from Indians
not congregated in towns or villages, and the certain non-collections
from the wilder races. Buzeta estimates that only five per cent. of
the whole population pay the tribute. Beyond the concentrated groups
of natives there is little control; nor is the most extended of
existing influences--the ecclesiastical--at all disposed to aid the
revenue collector at the price of public discontent, especially if
the claims of the convent are recognized and the wants of the church
sufficiently provided for, which they seldom fail to be. The friar
frequently stands between the fiscal authority and the Indian debtor,
and, as his great object is to be popular with his flock, he, when
his own expectations are satisfied, is naturally a feeble supporter of
the tax collector. The friar has a large direct interest in the money
tribute, both in the sanctorum and the tithe; but the Indian has many
means of conciliating the padre and does not fail to employ them, and
the padre's influence is not only predominant, but it is perpetually
present, and in constant activity. There is a decree of 1835 allowing
the Indians to pay tribute in kind, but at rates so miserably low that
I believe there is now scarcely an instance of other than metallic
payments. The present amount levied is understood to be--
For the Government 10 rials of plate.
For the tithe 1 ,, ,, ,,
Community Fund (Caja de Comunidad) 1 ,, ,, ,,
Sanctorum (Church) 3 ,, ,, ,,
--
15 rials, or 1 7/8 dollar.
Which at 4s. 6d. per dollar makes a capitation tax of about 8s. 6d. per
head.
The Sangleys (mestizos of Chinese origin) pay 20 rials government
tribute, or 25 rials in all, being about 14s. sterling.
There are some special levies for local objects, but they are not
heavy in amount.
The Chinese have been particularly selected to be the victims of the
tax-gatherer, and, considering the general lightness of taxation,
and that the Chinese had been invited to the Philippines with every
assurance of protection, and as a most important element for the
development of the resources of the country, the decree of 1828
will appear tolerably exacting. It divides Chinese settlers into
three classes:--
Merchants who are to pay a monthly tax of 10 dollars £27 0 per annum.
Shopkeepers who are to pay a monthly tax of 4 dollars 10 16 ,, ,,
All others who have to pay a monthly tax of 2 dollars 5 8 ,, ,,
Not consenting to this, and if unmarried, they might quit the country
in six months, or pay the value of their tribute in labour, and
they were, after a delay of three months in the payment of the tax,
to be fineable at 2 rials a day. At the time of issuing the decree
there were 5,708 Chinese in the capital, of whom immediately 800 left
for China, 1,083 fled to the mountains and were kindly received and
protected by the natives, 453 were condemned to the public works,
and the rest left in such a condition of discontent and misery that
in 1831 the intendente made a strong representation to the government
in their favour, and in 1834 authority was given to modify the whole
fiscal legislation as regarded the Chinese.
The Chinese, on landing in Manila, whether as sailors or intending
settlers, are compelled to inhabit a public establishment called the
Alcaiceria de San Fernando, for which payment is exacted, and there
is a revenue resulting to the State from the profits thereof.