INTRODUCTION

For almost 20 years, the Philippines have already a law that has set rules in the taxation process of
all products, services, and other commodities consumed by the public. This law is the Republic Act No.
8424 otherwise known as The National Internal Revenue Code of 1997. But as President Rodrigo Roa
Duterte took the seat of the highest government official in the country, he pushed the immediate
amendment of the said law that led to the creation of Tax Reform for Acceleration and Inclusion (TRAIN)
Law.

Through the implementation of the new law, the government seeks to enhance the tax system
of the country thereby promoting sustainable and inclusive economic growth. The law also looks up to
give solace to a greater number of taxpayers and their families in order to improve levels of disposable
income and increase economic activity. Lastly, the revenues that will come from this law will be used for
the betterment of infrastructure, health, education, employment, and social protection of the people.

The T.R.A.I.N. Law relatively decreases the tax on personal income, estate and donation.
However, it also increases the tax on certain passive incomes, documents (documentary stamp tax)
along with the excise tax on petroleum products, minerals, automobiles, and cigarettes.

Aside from that, the T.R.A.I.N. Law also imposes an excise tax on sweetened beverages and non-
essential services (invasive cosmetic procedures) and removes the tax exemption of Lotto and other
PCSO winnings amounting to more than P10, 000.

Nevertheless, the new law is not just about changes that can bring us headache, but a milestone
in making our country a progressive one by simplifying the tax compliance.