THE FEDERAL Government shall exercise concurrent jurisdiction with the States on the following matters:
- Those affecting sanitation, health and ecological conservation.
- The development of agriculture, reforestation and solutions to the problems of irrigation, soil and water conservation.
- Promotion of the democratization of wealth, land reform, and cooperatives with members voting on the basis of patronage.
- The promotion of low and medium cost housing and industrial estates.
The States shall have jurisdiction over the following:
- Ownership of the public lands and inland natural resources within their respective States, except for mineral resources. They may only be disposed of in the form of leases for a total period not to exceed 75 years, including renewals. It shall include the land, air, sand, and water in their respective State boundaries.
- Inland public works of all kinds within their respective territories.
- Matters affecting culture and education in their respective territories, in the secondary level within the framework of the national identity.
- Peace and order to be supervised by the Philippine Constabulary within the State territory.
- The administration of justice with respect to private laws and their sanctions.
- Welfare and social security
- The establishment and operation of public transportation and the licensing of public utilities operating within the State.
- The determination of provincial and city living wages in line with cost of living in the area and the adjudication of labor disputes with compulsory arbitration where the State interest are involved.
While the States of the American Republic and the provinces in the Canadian Federation are vested with powers to have their separate, substantive and procedural laws causing great confusion to the citizenry, under our Constitution, the private law within the entire Republic of the Philippines will be uniform under the exclusive jurisdiction of Parliament.
However, the law of persons and family relations prevailing in the Muslim religion will be respected and the parties to a marriage contract have the privilege to agree, in their premarital contract on the law that will prevail during their marriage.
Article 11. Each State shall have exclusive jurisdiction to levy taxes on the following:
- Privately owned real estate, including graduated taxes on expensive homes especially earmarked to provide subsidies to privately owned low-cost housing.
- Sales tax and excise taxes of all kinds. However, the Federal Government shall have concurrent powers to tax gasoline and all kinds of petroleum products, hard liquor, tobacco, cigars, cigarettes, gambling, and amusement.
- Taxes, rents, and royalties on the disposition and utilization of public lands and natural resources, excluding mineral resources. In this area, the royalties will be determined and the concession licensed by the Federal Government, sharing one half of the royalties with the State.
The Federal Government shall have exclusive jurisdiction to tax imports and exports of all kinds and to impose countervailing duties on imports. Parliament may delegate to the Troika the power to increase or decrease import and export taxes by not more than one hundred percent and to impose post-operative tariffs for the protection of domestic production.
Each State shall have concurrent jurisdiction with the Federal Government to levy taxes on income and capital gains not to exceed 20 percent and to impose donations and inheritance taxes not to exceed ten percent. All the proceeds from these taxes shall be earmarked by the State to promote the democratization of wealth (See, however, Article 62 g).
Article 12. The Federal Government shall have a share of 20 percent of all State taxes collected by it under Article 11. The State shall have a share of 30 percent of all Federal taxes collected in the respective States.
The Federal Government may apportion specific funds for the benefit of a particular State to be expended by it for a specified project in the State, or by a direct grant to a State.
Article 13. The Tax Collection Authority shall collect all taxes accruing to all levels of Government and distribute these to the corresponding levels of government in accordance with law. (To be continued/PN)
