Saint Mary’s University

Senior High School

Rolando E. Caser Jr. ABM-12A

Topic: Tax Reform for Acceleration and Inclusion (TRAIN) is beneficial to Filipinos

According to the Department of Finance, “TRAIN is to create a more just, simple, and

more effective system of tax collection, as per the constitution, where the rich will have a bigger
contribution and the poor will benefit more from the government’s programs and services”. It is
the first comprehensive tax reform program of President Duterte which aims to make simpler,
fairer and more efficient tax system. TRAIN envisions to reduce poverty rate and to make
Philippines a middle-income country by the end of the administration of President Duterte in
2022. And in 2040, it seeks to eradicate extreme poverty, make equal opportunities for people in
economic and political institutions and achieve high-income country status.

According to Maramara (2018), there are eight effects of TRAIN to everyone. These are
larger take home pays and bonuses, excise tax on beverages and cigarettes, additional tax on
petroleum and automobile, decrease on estate tax and donor tax, tax on lotto winnings and
cosmetic procedures, exemption from Value Added Tax (VAT), simpler tax compliance and the
promised help of the government.

Department of Finance also stated that the fund that will be provided by this tax reform
program will provide additional investments in education, provide better services and facilities in
healthcare, and to support the infrastructure programs of Department of Public Works and
Highways (DPWH).

As a student and also as a citizen of this country, I agree on the implementation of this
Tax Reform for Acceleration and Inclusion (TRAIN). I see this program useful and beneficial to
my country and fellow countrymen. I believe that this new tax reform will change our country
for the better.
 Saint Mary’s University
Senior High School

I support the TRAIN because for me, it has more benefits and advantages rather than its
disadvantages. In the eight of effects of TRAIN to everyone according to Maramara (2018), I
believe that six of them are advantages and the other two are not.

TRAIN reduces income tax which will result to higher net income of employees. Also
TRAIN implements zero percent tax to annual salary below P250,000 and 13 th month pays. This
means employees can bring home larger pays. But to balance it, goods will have higher price
from now on. For me, this is better than having larger income tax and low price of goods.
Because from the previous years, income tax can reach up to 32% which is really a pain for
employees.

I agree on the excise tax on sugar-sweetened beverages and cigarettes. Because this
promotes a healthy-living lifestyle for everyone. This additional tax will keep us away from
diseases that may lead us to death or high hospital bills. Take note that milk, coffee and fruit and
vegetable juices are exempted from this.

Regarding estate and donor tax, a constant rate of 6% will be imposed. From the past
years, a estate that worth more than P200,000 will be taxed 20%. But because of TRAIN, a estate
that worth P5 million below will have zero percent tax and only a 6% to those above P5 million.
And in the previous years, donors tax can go up to 15% (if related) and 30% (if non-related). Due
to TRAIN, donors tax will be a constant of 6% regardless of the relationship.

Value Added Tax (VAT) will be exempted to small businesses with annual sales less than
P3 million, senior citizens, PWDs, renewable energy, and medicines for diabetes, hypertension
and cholesterol. Also, monthly rentals up to P15,000 will be exempted from VAT.

TRAIN will create a simpler tax compliance because people who earn below P250,000 a
year will no longer file their income tax returns (ITR). Bureau of Internal Revenue (BIR) will cut
down ITR to four pages instead of twelve for those who still have to pay tax.

Under TRAIN, 10 million poor Filipinos would be provided with cash assistance. They
will receive P200 a month and will increase to P300 a month for the next two years.
 Saint Mary’s University
Senior High School

As I said before, 70% of the fund to be collected will go to Build, Build, Build project of
the government that aims to spend more on infrastructures until the end of President Duterte’s
term in 2022. 30% will go to education, social protection, health and housing for others.

Despite of all the good benefits of the program, there are also instances that the program
is seemingly harmful to the pocket of everyone. And this is the increase in petroleum and
automobile tax and the tax on lotto winnings and cosmetic procedures.

There is an eight-peso increase on petroleum products this year because of TRAIN. Tax
in petroleum and gas will increase until 2020. Vehicles worth more than P1 million will have an
excise tax of 20% and 40% to those above P4 million.

And beginning 2018, winnings more than P10,000 will have 20% tax. And 5% tax to
cosmetic surgeries.

This excise tax is a pain in the pocket but this is where the government will get their
funds for their projects. So what we need to do is to just support and trust the government and
become a country as one. We might suffer due to inflation but we must think of the long term
effect of the TRAIN. This program may erase extreme poverty in our country.

TRAIN is not simply addition of tax to products. It is a revision of our tax system and
improved management of funds that the government will get. Again, I support this TRAIN law,
for a better future, and for a better Philippines.