For almost two years of its existence, the people of the Philippines have been questioning

Republic Act No. 10963 or TRAIN law which we are more familiar with. They have debated about what it
really contributes to the country, will it do good for our country, or is it another way of the government
to extort more money from them. What exactly is the TRAIN law, will its mission ever be realized or will
its turnout be another grand scam.

One December 19, 2017, President Rodrigo Duterte signed into law Package 1 of the
Comprehensive Tax Reform Program (CTRP) which is known to many as the Tax Reform for Acceleration
and Inclusion as Republic Act No. 10963 which took effect on January 1, 2018. The said law aims to create
a simpler, fair, and more efficient system, as per the constitution. Having the rich having bigger and
impactful contribution for the benefit of the poor and the government’s programs and services. The main
highlight of the law is the lowering of personal income tax (PIT) for all taxpayers except the richest.
Taxpayers with taxable income below P250,000 will be exempt from paying PIT and will see lower tax
rates ranging from 15% to 25% by 2020. This effect will see a decrease in income tax by 83% of current
taxpayers.

TRAIN law promises a real change which can be realized by promoting inclusive growth through
improved and adequate public services. These reforms are considered bold and can eventually lead the
country towards the much-awaited progress the Filipinos have been longing for a very long time. The law
envisions a great decrease in poverty by 13-15% down from 21.6% by 2022 and an estimated growth in
GNI by 5,000$ from 3,500$. By the time 2040 has arrived, the effects of this law expect to eradicate
extreme poverty and to increase, once again GNI by 11,000$. If these assumptions are to be satisfied at
least half of the said vision, it could a very big win for the country.

Though very promising, there are still downsides with the passing of this law. With the exemption
of taxpayers from PIT, taxpayers are now subjected to increased VAT, introduction of estate tax, fuel
excise tax, automobile excise tax, and SSB excise tax. All the mentioned taxes are increase in taxes payable
by the normal taxpayer and would increase gradually as years go on. Although these increases are taken
gradually, it would still feel rampant for lower class to middle-class citizens to cope up with the rampant
changes of taxes. Furthermore, the TRAIN law has great future if done right, with the proper
implementation of this law, this could a much needed game changer for the country, all the Filipinos hope
for now is to not let the cons outweigh the pros of this law because with that happening, the Filipinos
would have taken another unnecessary blow in their economy.
Sources:

TAX REFORM FOR ACCELERATION AND INCLUSION

http://hgc.gov.ph/downloadable/Tax%20Reform%20Info%20Magazine.pdf

REPUBLIC ACT NO. 10963

http://www.ntrc.gov.ph/images/Publications/train/tax-changes-you-need-to-know.pdf

TRAIN law and veto message of the president

https://www.dof.gov.ph/index.php/ra-10963-train-law-and-veto-message-of-the-president/