In order to provide the provincial governments with funds for the construction and maintenance of roads, Act No. 1652, passed on March 18, 1907, authorized the increase of the annual cedula (poll) tax from one to two pesos by resolution of the Provincial Board in any regularly organized province. In accordance with the authority thus granted, the cedula tax in most provinces was increased to two pesos prior to 1914. Effective on January 1, 1938, the cedula tax was abolished. In 1937, the receipts from the cedula tax had reached an all-time high of P5,933,657.97. Chiefly as a result of the abolition of this tax, the total internal revenue collections in 1938 was  7,000,000 pesos less than in 1937.

The importation and sale in the Philippines of opium for any except medicinal purposes was prohibited by Act of Congress which was made effective on March 1, 1908. In the meantime, preparation for the enforcement of this Act, the Philippine Commission on March 8, 1906, approved Act No. 1461, which imposed an excise tax upon opium, imposed license taxes of P1,000 per annum on wholesale dealers and P200 per annum on retail dealers in opium and provided for the compulsory registration of all habitual opium users. From 1906 to 1908, each habitual opium user was required to purchase an “accountable form” known as an “Opium User’s Permit” for which a fee of five pesos was collected.

An Act of Congress, approved on August 5, 1909, provided that there should be levied in the United States on goods imported from the Philippines the same internal revenue tax as was levied on similar goods of domestic manufacture, such tax to be paid intact to the Insular Treasury of the Philippines.

Since August 7, 1909, in accordance with Act. No. 1940 and with Executive order No. 64, Series of 1909, excise taxes have been collected on imported goods at the same rates as on similar goods manufactured in the Philippines for domestic consumption. The largest item of revenue form this source is the excise taxes collected on tobacco products imported from the  United States.

The United States’ income tax laws of 1913 and 1916, by specific provisions thereof, were made applicable to the Philippines from March 1, 1913 to December 31, 1918. The revenue derived from the enforcement of these laws in the Philippines accrued to the Philippine Treasury. Act No. 2833, known as the Philippine Income Tax Law, was passed on  March 7, 1919. This Act was several times amended. The present income tax law is embodied in Commonwealth Act No. 466 which became effective on July 1, 1939.

Since 1914, excise taxes have been imposed on lubricating oils, kerosene, gasoline, naptha, and all other lighter products of petroleum distillation. The collections from this source increased from P997,578.43 for the fiscal year ending June 30, 1915 to P10,184,913.27 for the fiscal year ending June 30, 1938.

The “sales tax” was fixed by the Internal Revenue Law of 1904 at 1/3 of one percent of the gross sales of merchants and manufacturers. This tax was increased to one percent on January 1, 1915, and to 1-1/2 percent on February 23, 1923. The “percentage tax of 1 percent was levied by the Internal Revenue Law of 1904 only upon the gross receipts of common carriers. This percentage tax was subsequently extended to the gross receipts of certain other business enterprises.

An inheritance tax was first imposed by Act No. 2601, which became effective on July 1, 1916. This Act was several times amended. The present law imposing “estate, inheritance and gift taxes” is embodied in Commonwealth Act No. 466, which became effective on July 1, 1939.

The numerous changes which have been made in the rates of the excise tax on tobacco products are detailed in the chapter devoted to Tobacco Tax Stamps. Likewise the laws imposing specific taxes on playing cards are given in the chapter devoted to Playing Cards Stamps.

Since 1914, excise taxes have been collected upon cinematograph films and upon coal and coke.