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    Theoritical Background of Train Law

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    Aljun Manos
    The Tax Reform for Acceleration and Inclusion (TRAIN) Act was signed into law in 2017 as part of the Philippine government's Comprehensive Tax Reform Program. TRAIN revised the country's tax code by changing personal income tax rates, and estate, donor's, VAT, and excise taxes on petroleum, vehicles, beverages, cosmetics, coal, mining and tobacco. It aims to exempt low-income earners from income tax while taxing higher incomes at higher rates. While it increased tax revenues and GDP in early 2018, it also led to unprecedented inflation that exceeded projections and sparked petitions to amend the law.

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    Theoritical Background of Train Law

    Uploaded by

    Aljun Manos
    25 views1 page
    The Tax Reform for Acceleration and Inclusion (TRAIN) Act was signed into law in 2017 as part of the Philippine government's Comprehensive Tax Reform Program. TRAIN revised the country's tax code by changing personal income tax rates, and estate, donor's, VAT, and excise taxes on petroleum, vehicles, beverages, cosmetics, coal, mining and tobacco. It aims to exempt low-income earners from income tax while taxing higher incomes at higher rates. While it increased tax revenues and GDP in early 2018, it also led to unprecedented inflation that exceeded projections and sparked petitions to amend the law.

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    It is a background of the negative and positive effects of TRAIN Law

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    The Tax Reform for Acceleration and Inclusion (TRAIN) Act was signed into law in 2017 as part of the Philippine government's Comprehensive Tax Reform Program. TRAIN revised the country's tax code by changing personal income tax rates, and estate, donor's, VAT, and excise taxes on petroleum, vehicles, beverages, cosmetics, coal, mining and tobacco. It aims to exempt low-income earners from income tax while taxing higher incomes at higher rates. While it increased tax revenues and GDP in early 2018, it also led to unprecedented inflation that exceeded projections and sparked petitions to amend the law.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views1 page

    Theoritical Background of Train Law

    Uploaded by

    Aljun Manos
    The Tax Reform for Acceleration and Inclusion (TRAIN) Act was signed into law in 2017 as part of the Philippine government's Comprehensive Tax Reform Program. TRAIN revised the country's tax code by changing personal income tax rates, and estate, donor's, VAT, and excise taxes on petroleum, vehicles, beverages, cosmetics, coal, mining and tobacco. It aims to exempt low-income earners from income tax while taxing higher incomes at higher rates. While it increased tax revenues and GDP in early 2018, it also led to unprecedented inflation that exceeded projections and sparked petitions to amend the law.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Theoritical Background of TRAIN Law

    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 [6], 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 [7]. On the other hand, unprecedented
    inflation rates that exceeded projected calculations[8], 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.[9] [10][11]

    Sources:
    https://en.m.wikipedia.org/wiki/Tax_Reform_for_Acceleration_and_Inclusion_Act

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