NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
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72 JUL 26 All 38
S. No.
SENATE
889
R1:CE*'
Introduced by Senator FRANCIS G. ESCUDERO
AN ACT
ABOLISHING THE USE OF COMMUNITY TAX CERTIFICATE AND THE POWER 
TO LEVY COMMUNITY TAX REPEALING FOR THAT PURPOSE THE 
PERTINENT PROVISIONS OF REPUBLIC ACT NO. 7160, AS AMENDED, 
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991
EXPLANATORY NOTE
The history of the community tax certificate or cedula, then known as residence 
tax and residence certificate, brings incarnations of our country's colonial past. First 
implemented as a 19th century tax reform in the Philippines during the Spanish colonial 
times, following the abolition of the tribute system, the cedula was issued to all 
Filipinos, then called indios, upon payment of a residence tax.1
The cedula would later on play a significant role in Philippine Revolution when 
Andres Bonifacio together with his fellow katipuneros tore up their cedulas in defiance 
of Spanish rule in a meeting in Balintawak, known as the Cry of Pugadlawin that 
signalled the beginning of Philippine Revolution.
Today, however, with the identification of other sources of local revenue, the 
share of community tax in local government revenues has shrunk to insignificant 
amounts. Along with the increasing use of passport and tax identification numbers in 
official government transactions, the lack of means and willingness to verify under­
declaration of income and non-procurement of community tax certificates has further 
eroded community tax collections. As a result, payment of community tax "had almost 
become a voluntary matter2."
1 Caro, R. L. (2007) “Background on the Community Tax.” National Tax Research Journal 
13. 20-25.
2 Ibid.


This bill; symbolic it may seem, abolishes the community tax certificate system, 
primarily its use as a form of identification as when, among others, a Filipino 
acknowledges a document before a notary public, takes an oath of office or is 
appointed to a government position. It is submitted that the cedula^s a primary form 
of identification has lost its significance and value. If at all, the cedula only serves as 
a mere relic of our countr/s colonial past.
Consequently, the pertinent provisions of the Republic Act No. 7160, the Local 
Government Code of 1991, as amended, are proposed to be repealed, which carry 
over the provisions imposing residence tax then found in Commonwealth Act No. 465 
and the Local Tax Code of 1973, and mandate the use of community tax certificates 
as a primary form of identification.
I submit.
FRANCIS G. ESCUDERO/^


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 889
1/ : I 
\
' ... 
o{ ;ii'-■
72 JUL 26 AH 38
RKci' •■..D 3V.
Introduced by Senator FRANCIS G. ESCUDERO
AN ACT
ABOLISHING THE USE OF COMMUNITY TAX CERTIFICATE AND THE 
POWER TO LEVY COMMUNIIT TAX REPEALING FOR THAT PURPOSE 
THE PERTINENT PROVISIONS OF REPUBLIC ACT NO. 7160, AS 
AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE 
OF 1991
Be it enacted by the Senate and the House of Representatives of the 
Republic of the Phiiippines in Congress assembled:
1 
Section 1. Repealing Clause. Sections 156 to 164, Article Six, Title
2 
One, Book II, Chapter 2, Specific Provisions on the Taxing and Other Revenue
3 
Raising Powers of Local Government Units, of Republic Act No. 7160 are
4 
hereby repealed.
5 
All laws, presidential decrees, executive orders, proclamations and/or
6 
administrative regulations which are inconsistent with the provisions of this
7 
Act are hereby amended, modified, superseded or repealed accordingly.
8 
Sec. 2.Implementing Rules and Regulations. The Secretaries of the
9 
Department of Finance, the Department of Budget and Management and the
10 
Department of the Interior and Local Government, and the presidents of the
11 
Hga shall promulgate the required rules and regulations for the speedy and
12 
effective implementation of this Act.
13 
Sec. 3.Separability Clause. If any provision or part hereof is held
14 
invalid or unconstitutional, the remainder of the law or the provision not
15 
otherwise affected shall remain valid and subsisting
16
17 
Sec. 4. Effectivity Clause. This Act shall take effect fifteen (15) days
18 
from its publication in at least two newspapers of national circulation.
19 
Approved,