Timoteo, Nicole Ivy Rose P.

9-4 Fortitude

Train Law

Tax Reform for Acceleration and Inclusion (TRAIN) Law, also stated as the Republic
Act No. 10983, was signed by President Rodrigo “Roa” Duterte on 19th of December, 2017. It is
the initial package of the Comprehensive Tax Reform Program (CTRP). The TRAIN Law was
implemented on January 1, 2018.

The TRAIN Law intends to address the Tax Code’s weaknesses, mainly the following:
one, to simplify the current tax system; two, to create a just or precise taxation scheme; three, to
improve the efficiency of tax collection; and four, to enlarge a tax burden by a wide population
by increasing the overall inflation rate.

All things has its bright and dark side, and so is TRAIN Law. Here are some of the
advantages of TRAIN:

First, workers with an annual salary of ₽250,000 and below are exempted from tax.
Salaries that were once deducted because of 5% to 32% tax rate will now turn to 0%. The
TRAIN will also lower and simplify estate and donor’s tax range.

Second, TRAIN will fund for major programs like free education, and will also increase
the salary of public school teachers.

Third, there will be an increase in excise taxes for alcohol and tobacco which is an
effective way to reduce smoking and heavy drinking. They are taxes to lessen the unhealthy
habits of some Filipino people.

Fourth, social protection and transfer programs are included in the train package which
means that the incremental taxes that were obtained from the increase of the oil taxes will be
used to improve public transportations.

Fifth, persons with disabilities (PWDs) will now benefit because of the expanded
Philippine Health Insurance Corporation (PhilHealth) services while senior citizens will now
benefit from the socialized old age pension.

Last but not the least, the first package of TRAIN Law will make about half a million
jobs over the next 5 years which can lift up 250,000 Filipinos out of poverty. It will also help the
economy grow by 1.3% on the year 2022.
 Here are the disadvantages:

First, excise tax will be added to sugar-sweetened beverages. Milk products, ground and
3-in-1 coffee, and 100% natural fruit and vegetable juices are exempted.

Second, petroleum and automobile taxes will increase. The taxes in gas and petroleum
will slowly decrease until 2020. However, the taxes will be used to enhance public
transportations. Car owners will also pay higher tax.

Third, the price adjustments and the rising fares for transportation will greatly affect the
poor. Lastly, Filipinos will now have fewer purchases because of the inflation rate which was
brought by the TRAIN Law.

In conclusion, TRAIN Law was made to correct insufficiency in the current tax system
and to make it just, fairer, and more efficient. Just like all the things in this world, it has its own
benefits and downsides. Because of TRAIN, we will now prioritize the things we need to buy
instead of buying our wants. It will help us become thrifty.