Running Head: TRAIN LAW: PRO OR ANTI 1

Train Law: Pro or anti

Ellen Jane O. Reambillo

ABM 11-A

SENIOR HIGH SCHOOL DEPARTMENT

ILOILO NATIONAL HIGH SCHOOL

Eric B. Ayuyon

Subject Instructor

English for Academic and Professional Purposes

August 2, 2018
TRAIN LAW: PRO OR ANTI 2

Abstract

Tax Reform for Acceleration and Inclusion (TRAIN) Law was signed by President Rodrigo

Duterte last December 19, 2018 and was implemented on New Year celebration, January 1,

2018. It is to overhaul the country's 20 year old tax structure. Upon issuing this law many people

blamed the efforts of the government toward this fairer tax system. But President Duterte will not

stop this law. Train law includes expansion the Value added tax (VAT) base , increase petroleum

products, increase excise tax of automobile and introduces the increase of tax of sugar sweetened

beverages, tobacco, and some goods. Observing outwardly,train law has already help the

country, the people and the community, in short the economy of the Philippines. This TRAIN

Law must not stop because it helps the poor families including students education and senior

citizens, it also reduces the Personal Income Tax (PIT) and it help the government raise the

resources that is needed to invest further to country's infrastructure.

Keywords: tax, income, train law

TRAIN LAW: PRO OR ANTI 3

Train Law: Pro or anti

By: Ellen Jane O. Reambillo

One factor that can make one country move is the tax. According to Merriam

Webster, tax is "an amount of money that a government requires people to pay according to their

income, the value of their property and is usually used to pay for the things done by the

government. Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion

(TRAIN) Law was signed by President Rodrigo Duterte last December 19, 2017 to overhaul the

country is 20 year old tax structure .Rezalde (2018) stated that according to the Department of

Finance, the proposed Train Law is intended " to correct a number of deficiencies in this tax

system to make it simpler, fairer, and efficient". But some people have wrong understanding and

swallow knowledge about this law and they choose to blame the efforts toward this fairer tax

system for all the price increase in the past month. And many of them is suggesting to stop the

implementation of train law. Notwithstanding, Duterte(2018) speak of that "We cannot and we

should not".There are some reasons and advantages this law have that some couldn't

recognize.One of it is it helps the poor families, including the students' education and senior

citizens, it also reduces the Personal income tax (PIT) including also the donors tax and estate

tax, an help the government raise the resources that it needs to invest further in the country is

infrastructure such as road widening and bridges repair or the ‘build build build’ project of

Duterte's administration. Train law expands the value added tax (VAT) Base from PHP 1.9

million to Php 3 million. This would mean the small business with annual sales of PHP 3

million and below would be exempt from paying VAT which is envision to encourage growth

and job generation.Also, this law increases the excise tax of petroleum products. An estimate of

10% per liter will be excise on fuel. The law stated that higher tax on fuel but fare prices will not
TRAIN LAW: PRO OR ANTI 4

be affected. But what usually happen is that the public transportation prices will also skyrocket.

That is why the government has three mitigating programs who keep the fare at same level, to

improve jeepney engines and to help drivers of transportation vehicle to keep up with the

temporary and moderate increase in prices. These are the Pantawid Pasada Program, the

Jeepney Modernization Program and the Unconditional Cash Transfer.It also increases the excise

tax of automobiles as well as the tax of sweetened beverages, tabacco and some goods.

One of the popular and positive outcome of Train Law is the reduction of

Personal Income Tax (PIT) of majority of individual tax payers. Specially lessening the overall

tax burden of the poor and middle class Filipino family.Prior to enacted of the new law and

individual employee or self-employed tax payer would normally have to pay income tax as the

rate of of 5% to 32% depending on ones linked. Under this law an individual with a taxable

income of Php 250,000 or less will now be exempt from income tax. And those with the taxable

income of above Php250,000 will be subject to the rate of 20% to 35% effective this 2018.

Moreover the deductive 13th month pay and other benefits are on higher at Php 90,000 compared

to Php 82,000 under the old law.

Gatchalian (2018) stated that identification and a strong plan of action is needed to

get this inflation under control and make sure that the Filipino people have enough food to eat

with their families. Train law also helps the poor families including students education and

senior citizens. President Duterte said that the train law is already helping them coping with

rising commodity prices. Cash transfers are already in mostly 4 million poor people and hoping

to have 6 million more people will benefit. Briones said that this law is needed for quality

education because it gives fund to higher quality education.Almost 3 million senior citizens also

received Php 2,400 per month under the Social Pension of affected by train law.
TRAIN LAW: PRO OR ANTI 5

And lastly, train law helps the government raise the resources that needs to invest

further in the country's infrastructure such as road widening and repair and also bridges or this is

also called "build, build build" program of Duterte is administration. Government collects more

taxes and it will go to the different investment and different government project. When there are

more government program means more jobs for Filipino too.

The train law was enacted and seeing changes such as lowering the Personal

Income Tax (PIT), simplifying transfer tax; donor and estate, further expanding the Value added

tax (VAT) and increasing excise tax on certain goods. Somehow we can see the changes and

good benefits to the people and community. But that is not already all because President Duterte

is planning to implement Train 2, train 3 so on and so forth. Whatever bracket we are the new tax

reform can still spare a thousand pesos or two. So, it is still a win for everyone's finances. This

law is empowering the Filipino people to spend and save more. In general the tax reform is

simply utilization in nature, a little compromise for the benefit of the majority. This reform tax

is proposed will be decreasing gradually, it is not permanent or constant on the coming years.

The tax income on 2020 and onwards is expected to be more lower. There are advantages and

disadvantages that this law have. The fact is undeniable that at first, poor and innocent Filipino

people are affected of the tax inflation but it is just the first step to achieve the complete goals.

Train law aims to increase the percentage of our economy. Maybe 20 years from now,

Philippines will be a develop country because of this train law. Seeing now the changes and

innovations that the government doing our children and grandchildren will benefit. Try to look

and visualize the futures what government doing today. Let's support this TRAIN law for higher

economic percentage. Change has come.

TRAIN LAW: PRO OR ANTI 6

REFERENCES

Briones, L. (2018). The tribune. Retrieve from

http://tribune.net.ph/index.php/2018/07/26/briones-cites-trains-mitigating-effects/

Gatchalian, S. (2018). Manila bulletin. Retrieved from

https://news.mb.com.ph/2018/02/25/senate-panel-to-tackle-effects-of-governments-

economic-reforms-on-filipino-consumers /

Gialogo, G. (2018). Train law: What does it change? Retrieved from

https://www.rappler.com/…/192873-train-tax-reform-law-what-…

Recalde, E. (2018).Asia business law. Retrieved from https://www.vantageasia.com/will-

philippines-catch-train-s…/

Tax.2018. IN Merriam-Webster.com. Retrieved from https://www.merriam-

webster.com/dictionary/tax