Documente Academic
Documente Profesional
Documente Cultură
In the last four decades, the outcomes of reforms have been mixed - there have
been some victories but also serious setbacks. (Reside and Burns, 2016) Every new
implementation by the government, there are pros and cons. Past experiences of setbacks
on reforms, lead to ongoing debates of whether the proposed tax reform is truly beneficial
The Tax Reform for Acceleration and Inclusion Act (TRAIN) bill has been to
The term reform is also deceptive, said Gabriela Party-list Rep. Emmy de Jesus,
because commodity taxes will eat up any gains that consumers will get concerning their
take-home pay. Senator Sherwin Gatchalian also questioned government officials on the
possible effects of high fuel rates on power prices. Bayan Muna Rep. Carlos Zarate also
said in a statement released to media that the new measure shifts the burden to citizens.
Despite income tax exemptions, fringe benefits will be taxed, and consumers will have to
shoulder taxes on fuel, sugary beverages, and property. ACT Teachers Rep. Antonio
Tinio said that the excise taxes on fuel stayed in the revised bill, which might not be
income generated by the revised tax scheme will indeed benefit the poor.
Labor unions expressed concern that the poor might be burdened by the higher
prices of goods, particularly refined petroleum products, certain vehicles, and sugar-
Despite the condemnation, many are still showing their support to the bill.
According to the Department of Finance, majority of netizens who posted in their
page supported the tax reform. Lito Simba said Package One of the Duterte
administrations Comprehensive Tax Reform Program (CTRP) is good for the country
because it will standardize and simplify the tax system, should be easier to comply, and
less cumbersome.
Dr. Kahar Macasayon, the president of the Philippine Public Schools Teachers
Association (PPSTA) has given his full backing to the proposed Tax Reform for
Acceleration and Inclusion Act (TRAIN), which he views as a beneficial tool that will
uplift not only the economic status of its members, but their dignity and morale as well.
In two separate positions papers, the Health Care Without Harm (HCWH) group
and the Institute for Climate and Sustainable Cities (ICSC) called on the government to
use the TRAIN as a tool to clear the way for the countrys quick transition to more
renewable energy sources to help ensure a cleaner, safer and more sustainable means of
Angara said that, The TRAIN bill will help build not only the countrys physical
infrastructure, but also its human infrastructure. When the poor have access to education,
healthcare and social services, they gain better opportunities, leading to better incomes
With regards to lower excise of the Senate version of the bill compared to the
House Bill version, the committee wants to give ordinary Filipino familiesespecially
senator Legarda said that, beyond getting more government revenues, the measure should
also correct the loopholes in the country's tax system. It is being reviewed carefully.
The Promise
The government is redesigning the tax system to be simple, lower and fairer and
more efficient for all, while raising the resources needed to invest in infrastructures and
people.
To the people
As presented on the Department of Finance portal, the following are the visions of the
to-student ratio.
2. The additional revenue raised by the tax reform will be used to fund the
3. The tax reform program will be to provide the needed additional revenues
that would fund our countrys investment needs, promoting better lives for
savings they can get from the proposed bill. Even those people who are not paying taxes
are also going to benefit. They are going to get better roads, better education, better job
To the Economy
Globalization has put additional pressure on tax systems so that they are attractive
to foreign investors. Tax systems should foster economic growth through efficient design
Finance Secretary Carlos Dominguez III told American business leaders that now
is the best time to invest in the Philippines, given its vibrant economic prospects
Dominguez further said that the Philippines benign interest rates, low oil prices,
positive credit ratings, low debt-to-GDP ratio and its young, dynamic workforce are
among the key factors that will help sustain robust economic growth beyond the medium
term and entice investors to relocate here. The TRAIN will ensure the fiscal sustainability
of the Duterte administrations massive investments not only in infrastructure but also in
human capital and social protection programs for the poorest of the poor.
The administrations ultimate goals in pushing tax reform is to sustain the pace of
economic growth to 7 per cent or better, bring down the poverty rate to 14 per cent in the
medium term, and pave the way for the countrys rise to a high middle-income economy
by 2022.
Programs
Even though the income tax package is overall positive to the taxpayers and the
economy, certain compromise must be made in order to outweigh the initial impact of the
change. The tax reform bill would also provide the poor and other sectors who will be
greatly affected with cash transfers and other forms of assistance to help lift them out of
Under the proposed TRAIN or House Bill 5636 approved by the House of
Representatives last May 31, 40% of the annual incremental increase from oil excise
taxes will go to social mitigating measures such as targeted cash transfers for the poorest
families, public utility (PU) operators and drivers, and electricity consumers in Small
Power Utilities Group (SPUG) areas or those not connected to the main transmission
system. The balance of 60% will fund projects on infrastructure, education, health,
Pantawid Pasada Program. The government will revive the Pantawid Pasada
Program, which will provide those with valid franchised vehicles cash cards to lessen the
effects of the potential slight increase in fuel costs due to the higher excise tax . It aims to
engines to increase vehicle mileage and decrease carbon emission. It aims to replace
220,000 jeepneys, including 70,000 in Metro Manila, that are 15 years old and above,
with more fuel-efficient vehicles. This program will not only be beneficial to the public
less than 100 kilowatts per hour. It will focus on lifeline consumers in SPUG areas that
use diesel or bunker fuel to power their communities. This program will not involve any
month for one year to households will low income, to help them keep up with the
On the TRAIN or Senate Bill 1592, that was issued last September 20, 2017.The
Free Tuition Law. Revenue gain from the Senate version of the Tax Reform for
Acceleration and Inclusion (Train) measure will fund implementation of the free-tuition
law that needs P51 billion, according to the Commission on Higher Education (CHEd).