Tracing the 50-year trend : developments in Philippine Income Tax Progressivity (1972-2022)

Date

1-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Emmanuel Genesis Andal

Committee Member

Luisito C. Abueg, Gideon P. Carnaje, Ma. Angeles O. Catelo

Abstract

In optimal tax theory, progressive income tax structures are essential for enhancing equity in tax systems. However, the measurement of tax progressivity remains an underexplored area in Philippine tax literature, with limited studies quantifying it across the country’s various tax regimes. This study examines the progressivity of personal income taxes in the Philippines from 1972 to 2022, employing contemporary measures, particularly the Stroup index. To contextualize the progressivity scores, the study includes a case analysis of major tax reforms. The analysis revealed fluctuating progressivity levels, with the highest observed in 1985 under Presidential Decree 135, reflecting a markedly progressive tax system. Progressivity declined from the 1980s to the early 2000s, while recent reforms under the TRAIN law have shown modest improvements. However, these gains are offset by regressive excise taxes, tempering the overall impact. These results suggest that progressivity has been only an incidental priority in the reform of tax laws.

Language

English

LC Subject

Income tax, Progressive taxation

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 B87

Notes

RESTRICTED:

Not available to general public, consultation with author/SP adviser and to those bound by confidentiality agreement.

Document Type

Thesis

This document is currently not available here.

Share

COinS