ENG 5 Academic Paper:

Republic Act No. 10963

Tax Reform for Acceleration and Inclusion (TRAIN)
to Sustainable Near-Term Growth

Submitted by:
Abuel, Rey Joyce B.
Adanza, Gina H.
Cristobal, Harlika Dawn C.
Daigdigan, Ivy Mae L.
Ngaso, Estelle Mae A.

BSAC - 1 ACB

Submitted to:
Ann Catherine Ticao Acenas

March 11, 2019

 TABLE OF CONTENTS
Page Number

Abstract
I. Introduction 1
II. Body
2.1 Analyzing The Problem 3
2.2 Legislative History 4
2.3 Advantages and Disadvantages of the Law
2.2.1 Increased Annual Income Tax Exemption 5
2.2.2 Increased Tax Rate for P8-Million Annual Earners 6
2.2.3 Lower Estate Tax and Fairer Value-Added Tax 6
2.2.4 Increased Government Revenue To Support
‘Build, Build, Build’ Program 7
2.2.5 Increased Excise Tax on Oil, Automobiles and
Sugar-Sweetened Beverages 7
2.4 Consequences of The Problem
2.4.1 Effects on Filipino Consumers 8
2.4.2 Effects on Filipino Businesses 9
2.4.3 Government’s Lack of Public Disclosure 9
2.4.4 Lack of Responsiveness and Accountability 9
III. Conclusion 10
IV. Recommendations 12
References 14
Bibliography 15
Appendices
 ABSTRACT

The report mainly focuses on the relativity of Tax Reform for Acceleration and

Inclusion (TRAIN) to sustainable growth of the country. It was implemented to raise

additional funds to help support the government’s accelerated spending on its “Build,

Build, Build” and social services programs. Aside from the reason to finance the

government’s infrastructure and development projects, TRAIN Law seeks to address

the issue of embezzlement, spending of public funds for personal purposes, several

unnecessary overseas trips of the government officials and unaccounted expenses of

the previous administration. However, with the positive outlook of the current

administration, people argued and pointed out how ineffective and inefficient the

government is in exercising its economic development strategy through the TRAIN

Law. The enactment of the law reduces personal income tax but it offsets the benefits

because it imposes a higher tax on prime commodities, fuel, cars, tobacco and sugary

beverages.

Based on the results of the report, the authors conclude that TRAIN Law needs

to have proper public disclosure of the allocation of funds in order to maximize the full

potential of the benefits. Moreover, in order to achieve such goal, the governing body

should take an effort on presenting transparency, responsiveness and accountability.

 ACKNOWLEDGMENT

The authors wish to express their deepest gratitude to the following people who, in

every way, helped them in making this academic paper possible.

To Mrs. Ann Catherine Ticao Acenas, adviser, who dedicated her time for the

success of this report. Despite the minimal time allotted for this, she open-handedly

shared every speck of knowledge to us.

To the family and friends, whose support filled the authors with enormous

dedication to fulfill whatever it takes to conclude this academic paper.

And above all, to the LORD ALMIGHTY, for His infinite provision of grace and

divine intervention in the completion of this report, for in Him nothing is impossible for

He is filled with love.