TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 Jill 14 filO ;54
SENATE
Ki.Vi.t-. -M-
S. No.
Introduced by Senator Francis G. Escudero
AN ACT
ABOLISHING THE USE OF COMMUNITY TAX CERTIFICATE AND THE POWER 
TO LEVY COMMUNITY TAX, REPEALING FOR THE 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.
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 
signaled the beginning of Philippine Revolution.
Today, however, with the identification of other sources of local revenues, 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 matter" according to the seminal paper of Caro in the National 
Tax Research Journal entitled "Background on the Community Tax."
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 as a primary form 
of identification has lost its significance and value. If at all, the cedula only serves as 
a mere relic of our country'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Government Code of 1991, as amended, are proposed to be repealed, which carry 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.
In view of the foregoing, the passage of the measure is earnestly sought.
FRANCIS G. ESCUDERO


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
Zb JUL 14 AlO •b4
\
ft1:"
S. No.
491
Introduced by Senator Francis G. Escudero
AN ACT
ABOLISHING THE USE OF COMMUNITY TAX CERTIFICATE AND THE POWER 
TO LEVY COMMUNITY TAX, REPEALING FOR THE 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 House of Representatives of the Philippines in 
Congress assembled:
Section 1. Repealing Clause. - Sections 156 to 164, Article VI, Title I, Book II, 
Chapter 2 of Republic Act No. 7160 are hereby repealed.
All laws, presidential decrees, executive orders, proclamations and/or 
administrative regulations which are inconsistent with the provisions of this Act are 
hereby amended, modified, superseded or repealed accordingly.
Sec. 2. Implementing Rules and Regulations. - The Secretaries of Finance, 
Budget and Management and the Interior and Local Government, and the presidents 
of the local leagues shall promulgate the required rules and regulations for the speedy 
and effective implementation of this Act.
Sec. 3. Effectivity Clause. - This Act shall take effect fifteen (15) days from its 
publication in at least two newspapers of national circulation.
Approved,