NAVIGATING RA 10963 TAX REFORM FOR ACCELERATION REFORM AND

INCLUSION TRAIN LAW: ITS FEATURES AND IMPACT

Resource Speaker: Atty. Rodelio T. Dascil, MNSA
February 27, 2018 (Tuesday) at 2:00 pm
Center for Strategic and Policy Studies
College of Public Affairs and Development (CPAD)
University of the Philippines – Los Baños, Laguna

A NARRATIVE REPORT

With the advent of the new law on taxation in the Philippines, the College of Public
Affairs and Development of University of the Philippines - Los Baños, Laguna, invited
participants from the different sectors such as the academe, private and business sector, non-
government organizations, youth leaders and many others to elucidate and provide updates on
the new provisions of the new tax code.

The Laguna State Polytechnic University – Sta Cruz Campus, thru a letter of invitation
sent to the Vice President of Academic Affairs, sent five of its faculty members namely, Dr. Ma.
Victoria Cabigan, Dr. August Tuiza, Prof. Marielyn Pielago, Mr. Joseph Tombocon, and Mr.
Rushid Jay S. Sancon, from the College of Arts and Sciences, and College of Business
Management and Accountancy.

The participants of LSPU- Sta. Cruz arrived at the venue of the symposium at around
2:15 p.m. and immediately proceeded for registration. The program did not start immediately
due to the late arrival of other participants. The program, however, commenced at 2:30 in the
afternoon.

The program was opened with a short prayer lead by______________ and followed by
the singing of the national anthem. The master of ceremony called the roll of the participants
and the sector there are representing for proper recognition. Thereafter, ________________
was called for welcome remarks. Then, __________________ called for the introduction of the
resource speaker. The resource speaker was Atty. Rodelio T. Dascil, Director General of the
Senate Tax Study and Research, Office Senate of the Philippines. He was introduced as one of
the proponents of the Tax Reform for Acceleration and Inclusion otherwise known as the TRAIN
Law.

Atty. Dascil started his lecture on the relevance of the symposium and the
misconception about it. He presented the different focus of his lecture. The lecture includes the
following: (1) legislative intent of RA 1063; (2) Changes of the TRAIN Law on Income Tax; (3)
Features of TRAIN Law; (4) Repealed provisions and now subject to VAT or income Tax; (5)
Vetoed provisions; (6) Earmarking provisions; (7) Revenue estimates forgone and expected; (8)
Where are we heading and course of action;(9) Revenue regulations and implementing Rules on
Income Tax; (10) Analysis and impact of TRAIN Law; and (11) Concluding remarks.

Based on Atty. Dascil’s discussion, the TRAIN Law would become beneficial to all
employees, since it introduced a wider range of exemptions and the expansion of taxable rates
which will increase the net income of every employee in the country. In exchange, however,
personal exemption and additional exemptions were abolished under the TRAIN Law. According
to him, the scheme would still provide a savings of around 5,000 to 6,000 pesos annually. It was
also pointed-out that there will be a fixed rate of 6% for Donor’s and Estate Taxes. This is
different from the previous law which provides for a schedular rate for taxation purposes. On
another note, Atty. Dascil talked about the increase on prices of some goods due to increase on
excise taxes of petroleum products, cars, sugar and alcohol. Atty. Dascil emphasized that the
increase on excise tax petroleum products should not be taken advantage by the businessmen
and private enterprises to charge exorbitant prices since the increase is only minimal, and the
increase would be on a yearly basis, and not on a “one-time” imposition of the full value of the
intended increase. Further, except for sweetened beverages, the public must expect an
increase on prices of softdrinks due to the TRAIN Law, which increased the excise tax for
imported sugar used that is primarily used in manufacturing of such beverages. The increase on
the price of imported sugar used in manufacturing sweetened beverages is a regulatory
measure to encourage the manufacturers to use locally produced sugar.

After discussion, an open forum followed. Questions were raised to clarify issues
thrown against the new law. One of the questions raised pertains to the mechanism introduced
by the government to lessen the impact of TRAIN on minimum wage earners. Atty. Dascil
responded that the solutions is now on the hands and duty of the executive branch to provide
financial assistance amounting to 200 pesos a month which shall be given to the beneficiaries of
4Ps, and the same would also be expanded from its original number of coverage. The Congress
will allot the necessary budget for the said assistance but the DSWD must fast track the
identification of those who will be given financial aid. Another question was also raised with
respect to the income of contractual employees. One of the participants informed the Atty.
Dascil on the case of an employee whose salary was allegedly subjected to an excessive
deduction by an employer. He is wondering if contractual employees are not covered by the
TRAIN Law. Atty. Dascil clarified that all employees, whether working in public or in private, are
covered by the beneficial effects of TRAIN Law. He advised that his friend should ask for re-
computation.

Finally, the symposium was closed by____________________. The program ended at

5:10 pm. The participants from LSPU-Sta. Cruz arrived at the LSPU Campus at 5:50 p.m.