Mitchiejash T. Cruz 5.

1BSA Synthesis/2:00pm-3:00pm/Wed

Effect of TRAIN Law on Individual Taxpayers

Tax Reform for Acceleration and Inclusion Law cited as Republic Act no. 10963

is the initial package of the Comprehensive Tax Reform Program signed into law by

President Rodrigo Duterte last December 19, 2017. This package introduced changes

in personal income tax, estate tax, donor’s tax value added tax, documentary stamp tax

and the excise tax. In this discussion we will talk about on what is the effect of TRAIN

Law to the individual taxpayer.

TRAIN Law has a positive and negative effect to the individual taxpayer. First let

us discuss the positive effect of the TRAIN Law. Some features of the tax reform are

lower personal income and higher consumption tax. Individual taxpayers with taxable

income not exceeding 250,000 pesos annually are exempted from income tax but still

the tax rate for individual taxpayers follows progressive tax system. Also tax reform

include the exception of the mandated 13th month pay bonus and other bonuses means

that every employees can take home more than they did the previous years. These are

some of the positive effect of TRAIN Law to the individual taxpayers and since

everything is a give-and-take process the effect of this may be the negative side of the

TRAIN Law.

TRAIN Law may lower the personal income tax but it has a consequence when it

comes to the consumption of the individual taxpayers for their needs and wants. TRAIN

Law increase the taxes on some beverages and snack that most of the individual

taxpayer spend their money on. Some of the individual taxpayer has their own vehicles

that they’re using in their daily life and because of TRAIN Law their consumption in
Mitchiejash T. Cruz 5.1BSA Synthesis/2:00pm-3:00pm/Wed

maintain their vehicles and operating it will increase because the tax for petroleum and

automobiles increases. These are some of the negative effect of the TRAIN Law to the

individual taxpayer. Maybe its hard to accept the fact that TRAIN Law may have

worsened the plight of lower-income household.

To sum up this discussion about the effect of TRAIN Law to the individual

taxpayers we can say that everything has a pros and cons it’s just a matter of

perception on what side you’re going to see. Maybe we should see the positivity of the

TRAIN Law why our government passed this bill. They say that the TRAIN Law Act is

for our country to generate more revenue to achieve 2022 and 2040 vision of the

Duterte Administration, namely, to eradicate extreme poverty, to create inclusive

institution that will offer equal opportunities to all, and to achieve higher income country

status. Let’s just wish that TRAIN Law would give a betterment for our country.

Source:

 Wikipedia/TaxReformforAccelerationandInclusionAct

 Rappler/HowTaxTRAINLawWorsenedPoverty

 BusinessMirror/TRAINLawHurtLowerIncomeFolkMore