The Tax Reform for Acceleration and Inclusion (TRAIN) Act, officially cited as Republic Act No.

10963, is the initial package of the Comprehensive Tax Reform Program (CTRP) signed into law by
President Rodrigo Duterte on December 19, 2017.[1] TRAIN consists of revisions to the National
Internal Revenue Code of 1997, or the Tax Code.[2] This reform includes packages that make
changes in taxation concerning the personal income tax (PIT),[3] estate tax, donor's tax, value added
tax (VAT), documentary stamp tax (DST) and the excise tax of petroleum products, automobiles,
sweetened beverages, cosmetic procedures, coal, mining and tobacco.[4]
The prominent feature of the tax reform is that people who earn ₱250,000 annually or ₱21,000
monthly and below are exempted from paying personal income tax (PIT). This includes minimum
wage earners, who were also exempted in the former tax system. On the other hand, those earning
over ₱250,000 have tax rates following a set PIT schedule. Essentially, greater income is taxed at
higher tax rates.[5] This denotes that low to middle income-earners get to have a higher take home
pay, while high income-earners have a bigger contribution to tax revenues. Increase in consumption
taxes intend to counterbalance PIT tax exemptions.[3]
The TRAIN LAW is one of the primary ways in which the 2020 and 2040 vision of
the Duterte administration is to be achieved,[3] and so, it had optimistic projections about its effect on
the economy, development and poverty alleviation in its inception. Regardless, contentions about
the passing of this law has been present since the beginning and the subsequent reception by the
people since its ratification has been controversial. In the first quarter of 2018, both positive and
negative outcomes have been observed. The economy saw an increase in tax revenues,
government expenditure and an incremental growth in GDP.[6] On the other hand, unprecedented
inflation rates that exceeded projected calculations,[7] has been the cause for much uproar and
objections. There have been petitions to suspend and amend the law, so as to safeguard particular
sectors from soaring prices.[8][9][10]
negative

Most Filipino netizens view the passage and implementation of the Tax
Reform for Acceleration and Inclusion (TRAIN) law in negative light, a recent
study by Research and Tech Lab (RTL) showed.

The study conducted from January to February this year, digital research firm
RTL found that out of 861 recorded sentiments online regarding the TRAIN
Law, 94.08 percent of the engagements considered not helpful at all for the
country.

“The top three social media sentiments read by the research analytics group
say that the TRAIN law is more of a burden to the Filipinos, it is anti-poor, and
most netizens are generally dismayed by the overall impact of the said law,” it
said.

Six months after the implementation of the Tax Reform for Acceleration and Inclusion
(TRAIN) law, the chairman of the House Committee on Ways and Means on Monday
vowed to provide this week government solutions on issues hounding the
implementation of the social benefits provided under the new tax law.

Committee Chairman Rep. Dakila Carlo Cua of Quirino said he is set to meet with
concerned government agencies on Thursday to discuss the social benefit measures to
mitigate the impact of the new tax-reform law.

“Our tentative schedule is on June 14. This meeting will help government agencies to
help hasten the implementation of social benefit card included in the TRAIN law,” Cua
said. “This roundtable with the implementing agencies will discuss the delays and come
up with a way forward,” added Cua, admitting that these mitigating measures are already
still behind the schedule.

According to the lawmaker, the social benefits card envisioned in the TRAIN law will
significantly help the situation of Filipinos as there are families who can barely get by and
urgently need help from the government.

During the deliberations for TRAIN, the economic managers gave Congress their
assurance that programs will be in place to help Filipinos cope with rising commodity
prices, he said.

The lawmaker also reiterated that the committee is open to suspend the imposition of
certain taxes in TRAIN law.

“In fact, our committee researchers are now studying what are the mechanisms,
processes we will use and the limitation of the suspension, as well as what features of the
law can be suspended,” Cua said.

However, he reminded the public that TRAIN also provides benefits to the people.

“Lowering the personal income tax is a big help to the people. Also the revenues from
these taxes will enable the government to create new infrastructure projects while
providing social programs for the public,” he said.
Earlier, Cua called on concerned government agencies to use the social benefits fund to
help Filipino amid increasing prices of basic commodities and services.

Based on the 2018 General Appropriations Act, the lawmaker said around P25.7 billion
has been budgeted for the unconditional cash transfer, while close to P900 million is set
aside for fuel vouchers.