Creation of Tax Commission for Revenue Reform

The tax system of the Philippines is described as obsolete, failing to distribute the tax burden equitably, and proving inadequate for expanding government needs.
The order directs a revision of the whole tax structure to establish an integrated and coordinated system focused on fiscal productivity, administrative feasibility, theoretical justice, and suitability to the Philippines’ political, economic, and social conditions.
The order treats tax revision as urgent due to impending political and economic changes brought by the operation of the Independence Act, requiring fiscal and economic adjustments.
The creation of the Tax Commission is intended to support achieving these goals through study and recommendations to the President.

Executive Order No. 160 creates and constitutes the Tax Commission of the Philippines.
The Commission consists of seven (7) members.
The President appoints the seven (7) members from time to time.
The Commission members represent not only the Executive and Legislative branches but also private business.
The Commission is established to operate as a continuing body for tax study and recommendation.

The Commission must study and make recommendations to the President on probable annual fiscal needs for the coming ten (10) years to ensure sufficient revenues to meet those needs (duty under Item (a)).
The Commission must recommend a revision of the internal tax system to ensure adequate revenues and a more equitable distribution of the tax burden, taking into account probable effects of the Independence Act on sources of public revenues (duty under Item (b)).
The Commission must recommend changes in tariff laws to make customs duties assessment more effective and to aid economic adjustment and the development of Philippine industries (duty under Item (c)).
The Commission must recommend the distribution of sources of revenue between the National Government and the provincial, municipal and city governments so each political unit has revenues adequate for performing its functions (duty under Item (d)).
The Commission must recommend a system of tax administration that ensures proper enforcement of tax laws (duty under Item (e)).

The Commission is granted all the powers of an investigating commission within the purview of Section 71 of the Revised Administrative Code.
The Commission is authorized, subject to the approval of the President of the Philippines, to requisition for and make use of the services of personnel from the Budget Office, Bureau of Internal Revenue, Bureau of Customs, or other government officers or employees of the Commonwealth for the Commission’s mission.
The Commission has access at all times to any document, data, papers, etc. held by any Department, bureau, office, or agency of the Government when necessary to aid its work.
The Commission’s authority to use government personnel and access government materials is designed to enable performance of its study and recommendation functions.
The Commission’s powers operate in furtherance of its mandate to advise the President.

Executive Order No. 160 requires President of the Philippines approval before the Commission can requisition and use services of specified government personnel.
The Commission’s recommendations are directed to the President as the recipient of its study outputs.
The Commission’s authority to requisition personnel and access information is tied to carrying out its mission.
The Commission operates through its membership appointed by the President, maintaining representation that includes both branches of government and private business.