Revised

Awareness of Micro, Small and Medium Enterprises on the Impact of TRAIN Law
An Accounting Research
Presented to the
College of Management and Accountancy
PHINMA University of Pangasinan
Dagupan City
In Partial Fulfillment of
The Requirements in
Bachelor of Science in Accountancy
Lopez, Allia M.
Araojo, Jane Shyryll C.
Banayat, Marife N.
Clata, Jessica F.
De Vera, King David P.
Gamueda, Pamela Ann Marie L.
Latras, Frances Mae L.
Petchay, Karen Joy C.
Villanueva, Rosemarie C.
May 2021
i
Endorsement and Approval Form
In partial fulfilment of the requirements for the Bachelor of Science in
Accountancy the completed research entitled, “Awareness of Micro, Small and
Medium Enterprises on the Impact of TRAIN Law” prepared and submitted by
ARAOJO, JANE SHYRYLL C., BANAYAT, MARIFE N., CLATA, JESSICA F.,
DE VERA, KING DAVID P., GAMUEDA, PAMELA ANN MARIE L., LATRAS,
FRANCES MAE L., LOPEZ, ALLIA M., PETCHAY, KAREN JOY C.,
VILLANUEVA, ROSEMARIE C., is hereby enhanced for approval and acceptance.
MARK JOSEPH M. MUÑOZ, MBA VANGIE MAE M. MANAOIS, CPA

Adviser Co-Adviser
This is to certify that the completed research mentioned above submitted by

ARAOJO, JANE SHYRYLL C., BANAYAT, MARIFE N., CLATA, JESSICA F.,
DE VERA, KING DAVID P., GAMUEDA, PAMELA ANN MARIE L., LATRAS,
FRANCES MAE L., LOPEZ, ALLIA M., PETCHAY, KAREN JOY C.,
VILLANUEVA, ROSEMARIE C., has been examined and approved on May 15, 2021
by the Oral Examination Committee.
KIM MARK F. BIASON, CPA, LLB MARY GRACE V. VILLANUEVA, CPA

Member Member
DR. TEOFILA S. ALBAY, CPA

CHAIRMAN
APPROVED AND ACCEPTED as partial fulfillment of the requirements for the

Bachelor of Science in Accountancy on May 15, 2021 with a grade of _______.
DR. TEOFILA S. ALBAY, CPA

Dean, College of Management and Accountancy
ii
Abstract
Title: Awareness of Micro, Small and Medium Enterprises on the
Impact of TRAIN Law
Researchers: Lopez, Allia M
Banayat, Marife N.
Clata, Jessica F.
Latras, Frances Mae L.
Course: Bachelor of Science in Accountancy
Instructor: Mark Joseph M. Muñoz, MBA
Tax is one of the essential requirement in a business. It supplies the government

to work upon its constituents, and of these are the owners of the businesses.
Understanding determinant factors of awareness of micro, small and medium enterprises
on the impact of TRAIN Law is considered an important area of focus in the society.
In this paper, we present a review about the awareness of micro, small and
medium enterprises aligning with the newly implemented TRAIN law. We collected
necessary data about these three main factors: 1) the changes in stability of the Small
Retail Shops after the application of the TRAIN Law in terms of profitability and
compliance, 2) impact of amendments in Train law to SRSs in terms of reaping more
benefits, improving tax collection efficiency and giving better services and facilities, 3)
possible reasons of unawareness in the owners of SRSs on tax mandates, and 4) effects of
tax in the decision making of the management in terms of price, kind and quality.
We propose a conceptual framework and develop a questionnaire. The research
used a qualitative method to further study the related factor. The survey questionnaire
were given to the respondents that is primarily based on the statement of the problem
with the use of open ended questions that are answerable by yes or no and an instrument
structured in the modified like fashion. After gathering all the data needed, it was then
treated and analyzed through frequency distribution. Our research reveals that 61% of the
small retail shop owners are unaware about the tax mandates in the city which should
urge the government to give an extra effort to disseminate the right information about tax
in a simple and understandable way. On the other hand, the remaining respondents who
are aware of the tax mandates answered that the listed factors have impacted the Small
Retail Shops and owners.
iii
Acknowledgment
The realization and success of this study has been made possible through the
support, help and cooperation of:
Micro, Small and Medium Enterprises in Dagupan City during the dissemination
of questionnaires.
To each member of this research who made time just to attend meetings despite of
many school works and other personal matters.
The parents of the researchers that supported us throughout our journey in making
this research possible and successful.
To our beloved Dean Teofila S. Albay, for allotting her time and effort for the
approval of this paper. As well as our Program Head Kim Mark Biason and Ms. Mary
Grace Villanueva in becoming one of our research panels.
To our Research Teacher, Mr. Mark Joseph Munoz for being always open
whenever we had a question or problem about our research and to his guidance,
motivation, and enthusiasm that helped us all the time doing our research. We would also
like to thank him for providing insight and expertise that greatly assisted the research. For
the guidance and help as she gave us knowledge on how and what to write in this
research. And for the patience and time that he spent for us.
We also want to extend our deepest and sincerest gratitude to Ms. Vangie Mae D.
Manaois, CPA and Mr. Ian Midrick M. Delos Santos, CPA. We are grateful for your
unconditional support in keeping the researcher focused on their duties also as a student.
For her untiring guidance, suggestions and motivation which proved very helpful in the
enrichment of this paper work.
To our previous research advisers, for introducing us to the world of research since
we were in Junior High School and shaping us in order to do it very well.
And above all, to God almighty, for, without Him, without His guidance, without His
help, without His grace, and without His blessings, this research would never be done.
To all those who, in one way or another, have helped the research to go through the
difficult undertaking needed for the research
Thanks for all your encouragement!
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Dedication
We dedicate this research paper to the people we value the most – our family and
Almighty God.
We proudly dedicate this research to our parents, who did not stop believing in us
after all the wrong decisions we have made. We thank you, our parents for providing all
our needs and always pushing and encouraging us to move forward and do not limit
ourselves. We dedicate this because, you have an essential part of this research paper.
Thank you for being the best provider. Thank you for making sacrifices, for being patient
and loving.
We also dedicate this to our siblings, who always there to motivate us when we
are ready to stop and fail. To our friends and special someone that cheered us up in times
when we are exhausted, giving us the energy and the enthusiasm to wake up every day
and finished all of our daily tasks. Thank you for always being there and thank for being
understanding despite of our shortcomings.
This is also dedicated to our Great Provider, God. Who was and always be the
reason why we made this research possible and successful.
The Researchers,
Banayat, Marife N.
Clata, Jessica F.
Latras, Frances Mae L
Lopez, Allia M.
v
Table of Contents
Page
PRELIMINARIES
Title Page i
Approval form ii
Abstract iii
Acknowledgment iv
Dedication v
Table of Contents vi
List of Tables vii
List of Figures ix
CHAPTER Title
1 THE PROBLEM AND ITS BACKGROUND
Rationale 1
Conceptual Framework 4
Statement of the Problem 5
Hypothesis
Assumptions of the Problem 6
Significance of the Study 7
Scope and Limitation 8
Definition of Terms 8
2 REVIEW OF RELATED LITERATURE
Related Literature 9
Related Studies 12
3 METHODOLOGY
Research Design 14
Subject of the Study 14
Instrumentation and Data Collection 15
Statistical Treatment of Data 17
4 PRESENTATION, ANALYSIS, AND INTERPRETATION
Data Presentation 19
Data Analysis 19
Data Interpretation 19
5 SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary 40
Conclusions 44
Recommendations 47
BIBLIOGRAPHY 50
APPENDICES 56
CURRICULUM VITAE 69
vi
List of Tables
Table Title Page

3.1 Total Population Sampling Distribution 15
4.1 Frequency Distribution and Percentage of Gender of the 19
Respondents
4.2 Frequency Distribution and Percentage of Monthly Income in Peso 20
4.3 The Stability of Small Retail Shops in Dagupan City as to 20
Profitability
4.4 The Stability of Small Retail Shops in Dagupan City as to 21
Compliance
4.5 Level of Agreement in terms of Weight of Taxes to Small Retail 22
Shop Owners
4.6 Level of Agreement According to Obedience of Small Retail Shop 22
Owners in Paying Taxes
4.7 Level of Agreement of SRS Owners According to Paying Taxes 23
on Time
4.8 Level of Agreement of SRS Owners in terms of Reasonableness of 24
Tax Implementation in Dagupan City
4.9 Level of Agreement of SRS Owners in terms of High Tax 24
Expenses
4.10 Level of Agreement of SRS Owners According to the 25
Proportionality of the Taxes they Pay and the Benefits they
Receive from the Government
4.11 Level of Agreement of SRS Owners in terms of Tax Benefits 25
4.12 Distribution of SRS Owners According to Tax Collection 26
Efficiency
4.13 Distribution of SRS Owners According to Better Services in Tax 27
Collection
4.14 Distribution of SRS Owners According to Better Facilities in Tax 28
Collection
4.15 Distribution of Small Retail Shop Owners in the Implementation 30
of TRAIN Law
4.16 Distribution of SRS Owners According to Existence of Tax 31
Mandates in Dagupan City
4.17 Distribution of SRS Owners According to SRS Owners 32
Knowledge in Tax Mandates
4.18 Distribution of SRS Owners According to their Curiosity in Tax 33
Mandates
4.19 Distribution of SRS Owners Unawareness in Tax Mandates in 34
vii
terms of Lack of Information from Management
4.20 Distribution of SRS Owners Unawareness in Tax Mandates in 35
terms of Lack of Concern of SRS Owners
4.21 Distribution of SRS Owners about Hardcopies of Tax Mandates 35
4.22 Distribution of SRS Owners According to Setting their Prices 36
4.23 Distribution of SRS Owners According to the Quality of their 37
Product
4.24 Distribution of SRS Owners According to Selection of Retail 38
Products
4.25 Distribution of SRS Owners According to Influence of Tax 38
Mandates in Choosing the Kind of Product they Sell
viii
List of Figures
Figur Title Page

e
1.1 A Research Paradigm on The Impact of Tax Mandates on Small 4
Retail Shop Owners
D.1 Percentage Distribution of Respondents According to Age 59
D.2 Percentage Distribution of Respondents According to Gender 59
D.3 Percentage Distribution of Respondents According to Income in 60
Peso
D.4 Percentages Distribution of Respondents’ Responses as to The 60
Stability of the Small Retail Shops in Dagupan City changed after
the application of the TRAIN Law in terms of Profitability
the application of the TRAIN Law in terms of Compliance: The
train law must be permanently implemented.
the application of the TRAIN Law in terms of Compliance: Taxes
are so heavy that tax evasion is considered as a necessity for many
to survive.
the application of the TRAIN Law in terms of Compliance: You
pay taxes voluntarily without public pressure.
the application of the TRAIN Law in terms of Compliance: You are
paying taxes on time to avoid penalties.
implementation of Tax mandates in Dagupan is reasonable.
amount of income tax which you have to pay is too high.
the application of the TRAIN Law in terms of Compliance: Your
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tax compliance is proportional to the benefits you gain from the
government.
present tax system benefits the rich and is unfair to average income
shop owners.
impact of amendments in train law to the small retail shop owners
impact of amendments in train law to the possible reasons of
unawareness in the owners of SRSs on tax mandates in Dagupan
City
effects of tax in the decision making of the management in terms of
Price, Kind and Quality of Product
x
Chapter 1
THE PROBLEM AND ITS BACKGROUND
This chapter covers the foundations of the study. It includes the Rationale,
Statement of the Problem, Significance of the Study and Scope and Limitations of the
study.
Rationale
The imposed tax is considered as the backbone or lifeblood of the government. It
supports the management in aiding the needed fund to accomplish the proposed projects
for the state’s economic development. According to Vera vs. Fernandez, government
have always included taxes in almost everything because upon taxation depends the
government's ability to serve the people for whose benefit taxes are collected.
The Department of Trade and Industry claimed that “In terms of value added tax,
the Micro, Small and Medium Enterprise (MSME) sector contributed 35.7 percent. The
manufacturing sector in MSME contributed the largest share of 6.87 percent, while
wholesale, retail trade and repair contributed 6.58 percent followed by financial
intermediation with a share of 6 percent”. The 2019 data on the List of Establishments
from Philippine Statistics Authority (PSA) recorded a total of 1,000,506 business
enterprises operating in the country. Of these, 995,745 (99.5%) are MSMEs and 4,761
(0.5%) are large enterprises. Micro enterprises constitute 89% (891,044) of total MSME
establishments, followed by small enterprises at 10% (99,936) and medium enterprises at

1
0.5% (4,765). The top five (5) industry sectors according to the number of MSMEs in
2019 were: (1) Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
(462,492); (2) Accommodation and Food Service Activities (144,024); (3) Manufacturing
(115,387); (4) Other Service Activities (65,918); and (5) Financial and Insurance
Activities (46,100). These industries accounted for about 83.35% of the total number of
MSME establishments. Referring to this data presented, we cannot deny that in our
nation, MSMEs are vital to almost 80% of our country’s population and contribution of
tax.
The development of MSMEs is seen as the way to accelerate the achievement of
wider socio-economic goals, including poverty modification. The determination of what
constitutes a MSME is based on its total assets. This is provided in Republic Act No.
6977, as amended as the “Magna Carta for Micro, Small and Medium Enterprises
(MSMEs)”. MSMEs generally operate locally, thus offering larger employment
opportunity to the state. It also delivers necessary sustainability and innovation in the
economy as a whole.
Tax Reform for Acceleration and Inclusion (TRAIN) Law or the RA 10963 took
effect on January 1, 2018. According to Department of Finance National Tax Research
Center, its aim is to make the Philippine Tax System simpler, fairer and more efficient to
promote investments, create jobs, and reduce poverty. Along with this objective, the
Comprehensive Tax Reform Program (CTRP) also aims to raise revenues that will fund
the President’s Build, Build, Build Project that will sustain high and inclusive growth of
2
the country; and finance investments in our people through enhanced education health
and social services.
According to several research firms, Micro and Small-medium sized businesses
are one of those who will be benefited a lot because of this tax reform. Aranas says,
under the TRAIN Law, self-employed individuals whose gross sales/receipts are more
than P250, 000 but do not exceed P3 million are given the option to be taxed at either 8
percent of gross sales/receipts in excess of P250,000; or new graduated income tax rates
under the TRAIN Law. According to BIR Commissioner Caesar R. Dulay, bringing the
tax collection drive to the grassroots level is one of the bureau’s programs designed to
further improve tax enforcement activities and voluntary compliance. With these facts
stated, researchers will study on how tax payment affects the company’s cash flow and
financial reports.
Dagupan is considered as one of the fast emerging cities in the Philippines. It is
where different known establishments are located. Its economy is visibly vast and
continues to immense. As MSMEs are helping the local and national government through
their taxes, what are the significant and direct impact of this to their businesses? Do they
have a protest concerning the fact of taxes imposed to them? Are they aware of the
impacts of the TRAIN Law in their businesses?
The research aims to generate a concrete evidence about the awareness of
MSMEs in the impact of the implemented TRAIN Law in Dagupan City. Assessing
whether the tax reforms implemented were effective and helped Micro, Small and
3
Medium Enterprise to be more knowledgeable and compliant with the tax imposed to
them. This study focuses on reviewing the literatures which is substantial to this research
from various scholars and authors. It aims to provide a systematic analysis and theoretical
evidences about the influence of imposed taxes to MSMEs by the local and national
government. Interviews and surveys will be conducted simultaneously to local MSMEs.
Researchers shall have a comprehensive data investigation on both local businesses
personal evaluation on the impact of tax and local government justification on imposing
taxes on MSMEs.
Conceptual Framework
The researcher’s put significance of the factors that will help the researchers
identify the level of awareness of MSMEs on the impact of TRAIN Law as input to set
more importance on the unknown variables in the study.

INPUT PROCESS OUTPUT
 Profile of the The respondents 1. Awareness of
respondents will gather data Micro, Small and
 The level of awareness through the use Medium
of the owners of of descriptive Enterprises on the
MSMEs on the impact survey with Impact of TRAIN
of TRAIN Law in qualitative Law.
Dagupan City. questionnaires.
2. The MSMEs
 The relationship
owners will be
between the profile of
aware and can
respondents and the
trace the tax
level of awareness on
amount imposes
the impact of TRAIN
by the
Law.
government.
4
Figure 1.1 Research Paradigm
Statement of the Problem
The main problem of this study was to determine the Awareness of Micro, Small
and Medium Enterprises on the Impact of TRAIN Law in Dagupan City.
Specifically, it sought to answer the following questions:
1. Profile of Respondents as to:
a. Type of Business
b. Capital
c. Years of Operations
2. What is the level of awareness on the impact of TRAIN Law to the respondents as to:
a. Profitability
b. Compliance
c. Benefits
d. Decision Making
3. Is there a significant relationship between the profile of respondents and the level of
awareness on the impact of TRAIN Law?
5
Hypothesis of the Study
H0: There is no significant relationship between the profile of Micro, Small, and
Medium-sized Enterprises in Dagupan and the level of awareness of MSMEs on
the impact of TRAIN Law.
Assumptions of the Study
The part is a statement of things that are presumed to be true during the conduct
of the study. It should be noted that these assumptions need not be proven unlike the
hypothesis. It should likewise be based on the general and specific problems and be
stated in simple, brief, generally accepted statement.
1. The research will help contribute further information and awareness about how
TRAIN law is beneficial to the Filipinos.
2. The research will help MSMEs trace the tax amount imposed by the
government. The demand of sales will also trace by MSMEs if it is higher, lesser
or no improvement.
3. The research will help the local government units to assess the level of
awareness of the MSMEs about TRAIN Law and will serve as a basis for them to
provide better services for their taxpayers.
6
4. The research will help MSMEs managers to monitor the schedule of tax
payment and know the impact of noncompliance such as penalties, fines and
other sanctions.
5. The research will make the local business owners to be knowledgeable about
the importance of understanding the significance of tax.
Significance of the Study
This study will be undertaken to know the level of awareness of MSMEs on the
impact of TRAIN Law in Dagupan City whether it is an additional burden for them or
somehow helpful.
Micro, Small and Medium Enterprises
They would have knowledge or the needed awareness about the impacts of
TRAIN Law imposed by the government and how does it really affects them.
Business course Students.
They are the students in Accountancy and Business Management course and or
strand. They are the second main concern of this study because this will help them on
understanding further the role of tax mandates on aspects embodying the corporate world
of business.
The Local Government Unit
7
This study will serve as a guide for the LGU in implementing programs and tax
regulations. It will help them in determining the current impact of the implemented taxes
on MSMEs owners.
The Researchers
The result of the research is beneficial to either present or future researchers. This
study is essential and may be one of the basis in new theories that will arise about tax
mandates.
Scope and Limitations
This study will be conducted to determine the awareness of Micro-Small and
Medium Enterprises on the impact of the newly implemented TRAIN law. This data
collection will be conducted to 93 randomly selected Micro, Small and Medium
Enterprises owners in Dagupan City who will represent the population.
Although the research has reached its aims, there were some unavoidable
limitations. Each of the respondents will have the same questionnaires that will be
answered on google forms. This study will only be applicable to all the Micro, Small and
Medium Enterprises with monthly taxable income ranging from P25, 000 to P100, 000
and monthly gross sales of 100,000-300,000. The main source of data will be the
questionnaires which are prepared by the researchers.
Definition of Terms
1. Gross income includes all income you receive that isn't explicitly exempt
from taxation under the Internal Revenue Code (IRC).

8
2. Impact is used to express the immediate result and effect of the imposition
of the TRAIN law. It signifies the initial settlement of the tax burden on the tax
payer.
9
3. MSME (Micro, Small, and Medium Enterprises) according to DTI, it
refers to any business activity or enterprise engaged in industry, agribusiness
and/or services, whether single proprietorship, cooperative, partnership or
corporation whose total assets must have value falling under the following
categories:
Table 1.1 Micro, Small and Medium Enterprise Classification

Enterprise Asset Size
Micro Not more than P3,000,000
Small P3,000,001 – P15,000,000
Medium P15,000,001 – P100,000,000
4. Taxable income is the portion of your gross income that's actually subject
to taxation.
5. Tax Reform for Acceleration and Inclusion Law (TRAIN Law) or the
Republic Act 10963 aims to make the Philippine Tax System simpler, fairer, and
more efficient to promote investments, create jobs and reduce poverty.
6. Total assets include those arising from loans, but exclusive of the land on
which the particular business entity’s office, plant and equipment are situated.
10
Chapter 2
REVIEW OF RELATED LITERATURE
This chapter contains the existing literature by different scholars or research
studies cited from secondary data sources like magazines, journals, newspapers,
textbooks, internet among others. It includes the objective review, conceptual review, and
the theoretical review.
As the Philippines go about with its everyday life, the current President Rodrigo
Roa Duterte implements what is known as the Republic Act 10963 as a part of the
Comprehensive Tax Program. This TRAIN Law aims to give individuals and families to
take higher income pay by lowering income tax that they have to pay; downside of this is
that there will be an increase with daily commodities as compensation to the lowered
income tax that the taxpayers are mandatorily paying. These commodities include
sweetened beverages, fuel, estate, and excise in automobiles, tobacco, coal, and cosmetic
procedures. These implications then received mixed views not only from people from the
field of business but also citizens that gets to experience the law first hand. In a recent
study by the Research and Tech Lab or RTL, out of 861 recorded sentiments from online
netizens, 94.8% deemed the TRAIN Law to be useless and calling it as anti-poor. Even
though the law has been viewed by the masses negatively, the law still has benefits to
offer towards its people. The main benefit from this law is that individuals can have a
bigger income due to lowered income tax. The TRAIN Law reduces the burden that the
Filipinos face because of high income tax that individuals have to pay.
11
The Bureau of Internal Revenue also perceives this law as a way to control and
know the small and medium business have been properly paying their tax. With the
lowered income tax implemented towards everyone, each individual will now pay in
accordance to their respective business and the designated amount that they were required
to pay as it will no longer be a burden towards them. Another benefit of the law is that
micro, small, and medium enterprises are favorable in terms of the law, businesses
earning Php250,000.00 will be exempted from paying their tax as their annual income is
already low (Jiao, 2018). Aside from that, this law can benefit everyone as the targeted
good of the law is only exclusive to sweetened products. This could mean that individuals
would start to practice healthier living.
The TRAIN Law has built itself a reputation for being viewed negatively by the
Filipinos. One of the reasons of the TRAIN Law being viewed as negative is because of
the inflation on sweetened goods as they now require higher tax than previous years. The
past two years leading up to the implementation of the TRAIN Law has caused inflation
not only in basic goods but also in fuel. This could mean that consumer’s demand will
lower as higher prices can lead to consumers looking for other alternatives and can
possibly abandon goods and as such will cause disastrous effects on business that sells
products containing sugar. Another negative effect of the law is the demand of the
masses.
According to De Vera, manufacturing business has lowered performances from
January 2018 to February 2018. This is due to lower demand by the consumers and as
such some businesses are forced to fire some employees in order to cut the budget. This
12
is a problem as manufacturers that make sugar-based products and makes use of fuel such
as coal or petroleum will now have a hard time maintaining demand from consumers and
at the same time losing workers for their business as their budget is no longer cut enough.
This would also mean high unemployment rates in the future.
On Walsh & Yu’s research, it was found that TRAIN Law affects the
commodities price through imposing high cost in the market. Moreover, due to the
similarity of its idea about the rapid growth that pushed up commodity price around the
globe, raising questions about whatever a seemingly unstoppable rise in food price
burden the problems faces by the poor around the world. While inflation is often seen as
aggravating poverty and worsening the income distribution, distinguishing between food
and non-food inflation could be merit. Higher food price can hurt the well-being in urban
areas but may benefit the producer.
According to Inchauste & Lustig, which emphasizes determining the different
impacts and inequalities of Middle- class specifically the Low- income class families
from the government implemented policy in promoting growth, widening of
opportunities to cater the needs of the citizen, and minimizing poverty with the help of
the implemented plans.
Asian Development Bank claimed that the current problem that the nation is
facing with regard to the economic crisis here in the Philippines wherein the poor people
are more likely affected. This case study is related to this study because it
disproportionately affects the poor income class families. Wherein, the rich people get
13
richer and poor people get poorer. The Philippines is suffering from poverty and
inequality which is a huge challenge as a result of the global financial crisis and
increasing prices of food, fuel, and commodities that kept the country from progressing
with the same levels with the neighboring nations. One of its main factors is the high
inflation rate that is likely felt by the poor income class families making them think the
utmost burden.
It is stated on New & Brien article that the similarities of this study with the
experiences of each who suffer from taxation. Making poor income families too practical
in purchasing their needs which is a good sign but somehow limits their access from all
the basic need they needed. As a result, everyone is not guaranteed to meet their
satisfaction especially those how cannot afford to buy goods namely the poor income
class families. This narrative study shares the same goal with this research on how the
government perceived the effects of the increased pricing of commodities to the poor
income class families.
On the other hand, according to Tahk in recent years, the war on poverty has
moved in big part into the tax code. Scholarship has begun to observe that the tax laws,
which once worsen the problem of poverty, have grown to be an increasing number of
powerful tools that the federal government uses to fight against it. Questions stay about
how this new tax war on poverty works, how it is unique from the decades of non-tax
antipoverty coverage, and how it could improve. In line with Tahk study, thus the article
then analyzed those separate provisions as an entire, figuring out their underlying
commonalities and how these have caused the ever-expanding tax battle on poverty.
14
These commonalities included political feasibility, problems of distributive fairness, less
stigmatizing of program recipients, administrative ease, program flexibility, neglect of
the extremely poor, and vulnerable legal infrastructures.
Taking these commonalities under consideration, the article then proposed ways
in which tax lawmakers and tax lawyers can surmount the low features of the tax conflict
on poverty and significantly enhance its effectiveness in attacking poverty. With some of
these changes, and with the right evaluation mechanisms in place, the federal government
may additionally soon be able to figure out whether the tax war on poverty could end up
even more effective than its non-tax counterpart. To make this possible, however, tax
lawyers should include the extent to which tax law has ended up the new poverty law and
use tax tools to fight the country’s continuing war on poverty.
According to Peichl, the rearrangements of the tax system is a target of numerous
pay charge change recommendations. These are not easy because this unpredictability
prompts high constant costs for citizens. The intricacy of the tax system is likewise
observed as an impediment to reasonableness and productivity. For example, complexity
is believed to impede accomplishing reasonable appropriation of the taxation rate since it
may enable citizens with high wages to use consider escape clauses and decrease their
taxation rate. The present paper evaluates the effect of duty disentanglement a mix with a
level expense rate on the circulation of after assessment pay and the negligible salary
impose rates looked by changed sorts of citizens. The change in peripheral salary assesses
rates might be considered as unpleasant markers for the contortions brought about by the
duty framework. The investigation depends on the reproduction display for the German
15
duty and tax system (FiFoSiM) utilizing salary charge microdata and family unit study
information. They assess disentanglement as the abrogation of a lot of conclusions from
the expense base incorporated into the German pay impose framework.
If these measures are joined with a decrease of wage assess rates to protect
income non-partisanship, the distributional effect relies upon the sort of rate plan change.
We additionally consider the impact of these expense measures on the peripheral salary
assess rate. In writing, quantitative investigations of the effect of duty improvement on
the effectiveness of the expense framework and the dissemination of income exist just for
the U.S. In an ongoing commitment, Gale and Rohaly consider the impact of various
expense improvement recommendations. In addition to other things, they think about the
arrangement of a level rate pay charge, joined with esteem included duty change. They
locate that such an expense changed would build the taxation rate of the white collar class
and lessen the taxation rate for high and low earnings. Hurricane et al. breakdown the
impacts of presenting a level of duty in the US as per the idea of Hall and Rabushka and
comparative renditions. They presume that high pay family units benefit most while
families with low salaries experience the ill effects of a level assessment change.
However, the study of Arnold stated the connection between assessment structures and
development isn’t liable to this uncertainty.
If some assessment instruments are to be sure more unsafe to financial
development than others, at that point one ought to have the capacity to recognize these
examples in the information when contrasts in the dimension of expenses are controlled.
This study inspects whether there are undoubtedly such examples noticeable in a board of
16
21 OECD nations over the most recent 35 years and whether a more grounded
dependence on a few classes of assessments is related with more grounded development
performance. The proof exhibited in this study depends on a genuinely standard
observational model of financial development that can be obtained from both neoclassical
and endogenous development models. It considers the primary determinants of GDP per
capital distinguished in the past development writing, including the collection of both
physical and human capital. On the other hand, one important element of the examination
is that all details are measured under an administration spending limitation, which
considers that to decrease one assessment; another must be raised if incomes are to stay
unaltered. Taking into consideration of the basic direct requirement permits a review of
impartial income changes in the expense structure and in this manner a correlation
between distinctive classes of duties and their relationship to economic development.
On the other hand, the study of Davis and Herekson, gives thought about
assessments on work and utilization lead in imposing shirking, and tax avoidance on a
few edges. The expense initiated substitution of family unit generation, and relaxation for
market merchandise and administrations are reliable documents of duty shirking. The
outflow bring about the replacement of underground work movement for work in the
lawful market division, and the utilization of merchandise and enterprises created in the
underground economy to escape tax assessment are illegal types of tax avoidance. The
measure of the family unit and underground divisions proposes the potential for a big tax-
induced preoccupation of profitable movement far from the market part.
17
On Ismael research it was found that tax assessment is a noteworthy wellspring
of government income. In customary financial matters, there are a few sorts of tax
assessment, for example, deals, and administrations expense, products, and ventures
impose, salary charge to give some examples. On the off chance that the administration
income isn't adequate to back government spending, the legislature may build the
expense rate or execute another kind of tax assessment to get more profits. Malaysia is
additionally considering changing the country's expense framework by presenting a
Merchandise and Enterprises Assessment (GST). GST is intended to supplant the Deals
and Administrations Expense (SST) that has been utilized in the nation for quite a few
years to deliver more income. GST is a utilization assess forced on the offers of
merchandise and enterprises. In a few nations, it is likewise called Esteem Included
Assessment (Tank).
Numerous contentions host emerged from different gatherings including
academicians, experts, government officials and the country all in all worried on how
GST will influence the market cost. In connection to this contention, this paper
investigated the impacts GST may have on low-salary families. Toward the finish of the
investigation, an examination was made against riches assess (zakat) to offer arrangement
suggestions for the usage of such a change. This investigation inspected related writing
on the impacts of GST and riches measures on low-pay families and incorporated the
fundamental contentions to examine the two sorts of duties. This investigation
demonstrated that riches charge (zakat) is desirable over low-salary family units and lifts
the economy when contrasted with GST.
18
According to the report of the Commission on Taxation, in guiding some of
Ireland, they will play a vital role in the future policy. There is one prediction role if there
will be returns to be raised, it will have to be done in one (or both) of two way. First is to
is to widen the base taxation, expanding of the sets of good service and activities has a
tax. And the others would increase its rate on the existing tax base while deficit reduction
takes place either on the revenue or spending side. Spending reduction it is difficult in
industrial democracies. Therefore, increasing revenue measures will play a significant
role in deficit reduction in Ireland. According to the analysts, when the tax rates rise, the
distortions they cause will increase rapidly than the tax rates themselves. The economic
distortions of a tax increase with the square of the tax rate, 20 percent to 25 percent are
less costly than 30 percent to 35 percent or 40-45 percent. There is a way to make tax
rates as low as possible. It should be done subject to revenue constraints, which implies if
you’re going to raise a certain amount of revenue you need to undertake to broaden the
base over you’re levying your taxes.
This study supported the idea that tax-induced changes in behavior and
efficiency effects are important to recognize. Those are not the only concern in tax
design. Policymaker must also consider the distribution of the tax system. There is often
trade-off between an efficient tax system which has a broad base with low rates and tax
system which has a distribution profile were elected leaders are attracted, which doesn’t
place substantial burdens on those with comparatively low ability to pay. The trade-off
between equity and efficiency could be a perennial issue in tax design. In an analysis of
tax policy and tax reform, it’s essential to recognize that taxpayers respond to taxation. It
19
is often one among the insights that economic analysis adds accounting discussion of
potential tax charges. This is one of the key insights that economic analysis put on the
accounting discussion of potential tax changes. There is a fact stated about tax policy.
Tax policy: we cannot say that taxes changed. Thus, we can study their effect because
taxes changed for a reason- and that reason cause changes in taxpayer. According to the
study (Tax Reform Act), concludes that reducing taxes on labor earnings has substantial
and positive effects on the labor supply of secondary earners, primarily married women.
According to Slemrod, emphasized that the simplicity and compliance and
administration costs cannot be independently evaluated of some standard of tax
enforcement and intrusiveness. Many provision makes the tax system complicate because
other people thought that they added fairness or promoted a desirable objective.
Therefore, simplifying the tax system creates a trade-off with equality, socials goals and
tax enforcement.
Lastly, the study of Ihazianti stated that declaration the proposed usage of
Products, and Ventures Expense (GST) are made by the Head administrator of Malaysia
in spending plan 2005. In any case, the execution has been postponed, and the legislature
has settled the choice to actualize it on April 2015, as they are needed to get open input
before putting it into reality. As of not long ago, numerous networks are less
understanding concerning the GST framework and give a negative observation about it.
Likewise, this investigation endeavors to discover what dimension of mindfulness and
discernment to GST citizens in Malaysia. This investigation comprises 256 government
workers of the auxiliary teachers in the territory Kuala Kangsar, Perak. Information
20
gathered utilizing polls. The outcomes demonstrated that the dimension of mindfulness
was moderate and most of the respondents give a high negative recognition to the effect
of GST. Which, in the end causes most the respondents did not acknowledge the usage of
GST in Malaysia. Presentation Expense is a noteworthy supporter of government income
for some, nations, including Malaysia. In light of a survey of the Malaysia government's
income for the year, 2011 uncovered that immediate expenses and roundabout charges
speak to more than 70 percent of all-out national pay. On the off chance that the duty
income builds, the legislature can execute different activities to drive financial
development.
By Malaysia's objective of turning into a created country continually 2020, the
administration intends to execute charge changes intended to make the current expense
framework less complex, increasingly straightforward and progressively proficient.
Expense change is likewise essential to expand income and financial development.
Accordingly, Malaysia means to execute the products and enterprises impose (GST).
GST is not an extra duty to a purchaser, as it just replaces the current deals assessment
and administration charge. The two deals assessment and administration charge are single
stage charge, forced on the conclusive customer while GST is a multistage duty, and it is
to be gathered toward the finish of each middle of the road dimension of generation.
Galimardanova et al. draw attention to the fact that tax regulation for small
enterprises is one of the most important factors that significantly influences the
development of this segment of the economy. Therefore, the government is taking active
measures to promote the development of small enterprises at the national level,
21
Galimardanova stated. Zhuravleva has similar opinion, she states that the necessity of
small business development is due to the fact that they are one of the important categories
of taxpayers, which plays an important role in the formation of the revenue part of the
budget, as well as in solving social issues in society.
Taking into account the role of SMEs in the state, Wysłocka & Verezubova
investigated the prospects for reduction of tax regulatory requirements for them. Tarasov,
analyzing the results of small businesses in Ukraine comes to the conclusion that they
need to be exempted from paying taxes at all in order to enable them to accumulate a
certain amount of capital. While Kotowska and Martyniuk, considered the issue of tax 10
reporting of SMEs in the countries of Eastern Europe and concluded that a simplified
procedure for tax reporting maintenance and filing is provided for SMEs.
Atawodi and Ojeka explained that, the choice of tax policy to employ depends on
the use of one or both two groups of instruments. The first being the use of special tax
preferences and the other incentives to support start-up and growth of small companies.
These incentives comprise of the lowering of corporate income tax rates, special tax
exemptions or tax holidays and relieves for small businesses. The underlying reason for
all these is to effectively raise revenue through measures that suit a country’s
circumstances and administrative capacity.
Developing countries such as Ghana are usually struggling in terms of raising
internal revenues for development. In order to solve this issue, scholars have discussed
among others that the widening of the tax net is the way to go. This is due to the urgency
22
to provide infrastructure, create jobs and reduce unemployment, expand the productive
sectors of the economy and to significantly raise public revenues from the non-oil sectors.
With this process, tax policies are to aim at bringing all taxable adults into the tax bracket
with a graduated rate that should ensure that the well-off pay their own share while the
low income earners are given savings incentives. An effective and efficient tax
administration system should be integral to any country’s well-being.
The authorities and the administrators of taxes should seek to balance their
educational and assistance role with the enforcement role. According to Atawodi and
Ojeka, the rationale behind the whole system of tax is consistent with two of the three
major theories of tax namely; the Ability-to-Pay Principle and the Equal Distribution
Principle. The two principles stress equality and fairness. The Ability-to-Pay theory is of
the view that individual should be taxed based on the individuals’ ability to pay while on
the other breadth, the Equal distribution Principle proposes that the incomes, wealth as
well as the monetary transactions of the individuals should be taxed at a fixed percentage.
This implies that, the individuals who earn more and buy more should pay more taxes,
but will not pay a higher rate of taxes.
Tax compliance has been seen to be a complex issue to define according to Marti.
In simple terms, tax compliance can be defined as the fulfilment of all tax obligations as
specified by the law freely and completely. The nature & Ojeka. Especially since most
SMEs have access to limited resources and inadequate expertise to comply with diverse
and complicated regulation. Marti also believes that high compliance and size of small
and medium enterprises makes the issue of tax compliance one of particular importance,
23
said Atawodi costs can result in tax avoidance, tax fraud, and inhibit investment by way
of diminishing competitiveness of the country in terms of taxation attractiveness. There is
also the issue of noncompliance of tax and this could come in the form of: the failure to
submit a tax return within the required period or total non-submission of tax returns,
understatement of income, overstatement of deductions, failure to pay assessed taxes by
due date. In some cases noncompliance of tax 12 may mean an outright failure to pay
levied taxes. Further, studies have shown that the problem of tax evasion is a widespread
in development worlds.
Empirical study by Fagbemi, Uadile and Noah have reported that noncompliance
of tax is prevalent in developing countries and it hinders development thereby leading to
economic stagnation and other social and economic problems.
Many scholars have addressed the questions that emerge from this literature
especially the in-elasticity of tax location decision with respect to tax differences across
jurisdictions. The issue of incomplete integration between personal and corporate tax has
been addressed. Government need to review tax bias against entrepreneurs and design tax
policies for entrepreneurship to remedy market failures, while avoiding adverse side
effects. Marginal tax rates exert a statistically and quantitatively significant influence on
the growth of firms. Marginal tax rate may be defined as the amount of tax paid on an
additional cedi of income. This leads to the conclusion that raising income tax inhibits the
growth of small firms.
24
One of the goal or aim of the TRAIN Law was to simplify the rules of the
processes and make it more understandable for business owners. According to Abrea, the
simplified tax procedures should also benefit MSMEs that often don't have the time or
money to hire accountants to go over their books. The TRAIN law cut down the income
tax returns from 12 pages to four. It also extended the deadline for taxpayers to pay the
second installment of their tax liabilities from July 15 to October 15.
A study conducted by Bonhonoy, Stakeholders' Perspective on the
Implementation of Train Law in Cebu City, Philippines, they found out that it was
moderately evident that the imposed taxes affects the cost and prices of the goods they
offer that results to necessary adjustments of their prices to go much higher, thus
affecting their profitability because of the purchasing power of the buyers becomes less.
However, referring to Lopez’ article by esquiremag.ph about the assessment of
some retail companies after a year, they concluded that they are the ones who earned the
most. In their year-end financial reports the percentage in their sales growth doubled
comparing to the prior year financial statements.
25
Chapter 3
METHODOLOGY
This chapter of the research has include the research design, sources of data, the
respondents, instrumentation and collection of data at tools for data analysis.
Research Design
This study utilized the descriptive method of research in assessing the Awareness
of Micro, Small Medium Enterprise on the impact in TRAIN law.
The qualitative method of obtaining descriptive data made uses of questionnaires
to gather information about the awareness of Micro, Small Medium Enterprise on the
impact in TRAIN law. This chapter describes the research paradigm, approach, and
design that were used to achieve the purposes of the study.
Subject of the Study
In this research, 93 Micro, Small Medium Enterprise (MSME) owners or
managers will be selected to participate in order to determine the awareness of MSME in
implementing TRAIN law (R.A 10963). All of the owners will receive the same
questionnaires to fill out. This research subjects and respondents were the owners and or
managers of the MSME in Dagupan City since they would be more "knowledgeable
informants".
The researchers will explain to the participants the goal of this study which is to
determine the Awareness of MSME and this will help the respondents to know the price
commodity changes that will help them to track their budget capacity when they transact
26
with the market. It will help the Micro, Small Medium Enterprise (MSME) to become
more knowledgeable about tracing the tax amount imposed by the government to their
business. Once the participants have been identified, the questionnaires will be given to
them with the consent that is stated and explained by the researchers. The research study,
research procedures, benefits of the participants, participant rights and protection of
confidentiality is included in the research description. MSME who agreed in becoming a
participant will received the particulars about the interview process and procedure.
Table 3.1 Total Population Sampling Distribution

List of Barangays Sample
Mangin 17
Bonuan-Binloc 12
Perez 13
Pantal 14
Mayombo 24
Lasip-Chico 13
Total 93
Instrumentation and Data Collection
The researchers laid their own idea for possible topics that they might focused on.
A majority vote was used to choose in between different ideas of the researchers. For the
information included in this paper, every researcher was delegated to do a chapter or with
a partner using the books in the library, the internet and their own perceptions. In
conducting the survey questionnaires, first step done by the researchers was to make a
letter for the adviser of the respondents. The purpose of the letter is to ask permission to
conduct a survey in the local registered Micro, Small Medium Enterprise located in
Dagupan City. The researchers referred to the list of population of MSME registered in
Dagupan City and assessed their income whether they qualify in the study, and then
27
gathered a sample, using Random Sampling. The researchers integrate possible questions
and made a questionnaire that was answered by the respondents. The questionnaire was
encoded in Google Forms as a way of gathering and listing data easier.
Some of the researchers went in the physical stores near their residency with survey
printed out as the in-person interaction allows for a naturalistic setting in gathering such
confidential information. The in-person interviews and gathering of data through google
forms took place over three week period. The day of conduct of the survey was done
during free time of the researchers and the participants.
The questionnaire designed for the study was subjected to validation procedure
for face and content validity and was validated by four professors in University of
Pangasinan. They went through each questions carefully to ascertain the appropriateness
of the instrument. They have suggested some alterations for the benefit of the participants
and the researchers. A questionnaire designed by the researcher (see Appendix) was used
in the study.
The content of the instrument was primarily based on the Statement of the
Problem of the study. The questionnaire has four different types of data gathering in four
different sections:
 First section: Personal data of the respondents.
 Second Section: Questions using structured in the modified Likert fashion that
test the Level of awareness and possible reasons why some MSME owners are
unaware about TRAIN law.
28
 Third Section: An instrument structured in the modified Likert fashion about the
stability of the MSMEs in Dagupan City changed after the application of the
TRAIN Law in terms of profitability and compliance.
 Fourth Section: Questions that test the response on the effects of these factors on
the decision making of the management in terms of setting their prices quality of
the product and kind of the product.
Statistical Treatment of Data
Responses to the questionnaire by Micro, Small and Medium Enterprises Owners
or Managers were statistically analyzed with the data requirements of the study. MSME
owners were investigated with the data instruments of the study. Descriptive statistics
such as frequency count, mean, percentage are considered. To know if there is a
correlation between the independent and dependent variables. The Correlation
Coefficient was utilized with 0.03 level of significance.
Gathered data will be converted into percentage and presented into tabular forms
and graphs for ease of information interpretation.
The following are the statistical treatment used by the researchers:
1. Slovin’s Formula is used to determine the sample size.
N
n=
1+ N (e¿¿ 2) ¿
Where:
N = Population
n = sample
e = margin of error (10%)
29
2. Frequency Distribution
Formula:
% = f/n × 100
Where:
% = Percentage
f= Frequency
n= number of respondents
3. Pearson r Correlation Coefficient

Pearson product-moment correlation coefficient is a measure of the strength of the
linear relationship between two variables (David Lane, date). This treatment is used
to determine if there is a significant relationship between the profile of respondents
and the level of awareness on the impact of TRAIN Law. The researchers are able to
arrive at the results through the use of Statistical Package for the Social Sciences
(SPSS) Software. Where the formula of Pearson r is:
N Σ xy −(Σ x)( Σ y)
r=
√ [N Σ x− ( Σ x ) ][N Σ y −( Σ y ) ]
2 2 2
Where:
N= Number of respondents
∑xy= sum of the products of paired scores
∑x= sum of the x scores
30
∑y= sum of y scores
∑x2= sum of squared x scores
∑y2= sum of squared y scores
Table 3.2 Interpretation of the Correlation Coefficient

Correlation Coefficient Value (r) Interpretation
± 0.00 to ± 0.20 Negligible Relationship
± 0.21 to ± 0.40 Low correlation, Present but Slight
± 0.41 to ± 0.70 Substantial or Marked Relationship
± 0.71 to ± 1.0 High to very high, Perfect Relationship
31
Chapter 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the information and data gathered in the study which were
analyzed and investigated by the researchers. The data were treated statistically after
which they were interpreted in order to elicit answers to the research problems. The
presentation of the results is done in tabular forms. Frequency was employed and
percentage was drawn from the computer data. The findings are presented.
DEMOGRAPHIC CHARACTERISTIC
This section presents the demographic characteristics of the 93 respondents from
Micro, Small and Medium Enterprises in Dagupan City, whether the respondents is an
owner or manager of the shop, the entity’s gross sales in peso (monthly), taxable income
in peso (monthly), and their net asset. For the statistical treatment of data gathered and
collected, the frequency count and percentage distribution were used.
Table 4.1 Owner or Manager of the Shop

Owner or Manager Frequency Percentage
Owner of the Shop 44 47%
Manager of the Shop 49 53%
Total 93 100%
Table 4.1 shows above, forty-four (44) or 47% of the respondents generate
ownership of the shop and forty-nine (49) or 53% of respondents, their managers of the
shop respectively. Largely, forty-nine (49) or 53% are managers of the shop in terms of
32
owner or manager of the shop. This result suggests that most of our micro, small and
medium enterprises respondents are managers of the shop because they are ultimately
responsible for the day-to-day operations (or management) of a retail store.
Table 4.2 Gross Sales in peso (monthly)

Gross Sales in peso Frequency Percentage
P100,000-P150,000 54 58%
P150,001-P250,000 18 19%
P250,001-P300,000 21 23%
Total 93 100%
Table 4.2 shows above, fifty-four (54) or 58% of the respondents generate gross
sales in peso ranging from P100, 000 to P150, 000 monthly; eighteen (18) or 19% of
respondents their gross sales in peso is from P150, 001 to P250, 000 monthly and twenty-
one (21) or 23% of respondents gross sales in peso is from P250, 001 to P300, 000
monthly respectively. Largely, fifty-four (54) or 58% are P100, 000 to P150, 000 in terms
of gross sales in peso (monthly). This result suggests that most micro, small and medium
enterprises business respondents in TRAIN Law an average amount of gross sales in peso
(monthly). The value of all of a business's sales transactions over a specified period of
time without accounting for any deductions. Net sales are a company's gross sales minus
three kinds of deductions in terms of allowances, discounts, and returns.
Table 4.3 Taxable income in peso (monthly)

Taxable income in peso Frequency Percentage
P25,000-P50,000 52 56%
P50,001-P75,000 25 27%
P75,001-P100,000 16 17%
Total 93 100%
33
Table 4.3 shows above, fifty-two (52) or 56% of the respondents generate taxable
income in peso ranging from P25, 000 to P50, 000 monthly; twenty-five (25) or 27% of
respondents their taxable income in peso is from P50, 001 to P75, 000 monthly and
sixteen (16) or 17% of respondents taxable income in peso is from P75, 001 to P100, 000
monthly respectively. Largely, fifty-two (52) or 56% are P25, 000 to P50, 000 in terms of
taxable income in peso (monthly). This result suggests that most micro, small and
medium enterprises business respondents in TRAIN Law has an average amount of
taxable income and they have a portion of a person's gross income that the government
deems subject to TRAIN Law. Taxable income consists of both earned and unearned
income. Taxable income is generally less than adjusted gross income because of
deductions that reduce it.
Table 4.4 Net Asset

Net Asset Frequency Percentage
P3,000,000 and below 68 73%
P3,000,001-P11,000,000 14 15%
P11,000,001 and up 11 12%
Total 93 100%
Table 4.4 shows above, sixty-eight (68) or 73% of the respondents generate net
assets ranging from P3,000,000 and below; fourteen (14) or 15% of respondents their net
assets are from P3,000,001 to P11,000,00 and eleven (11) or 12% of respondents net
assets are from P11,000,001 and up respectively. Largely, sixty-eight (68) or 73% are
between P3, 000,000 and below in terms of net asset. This result suggests that most
micro, small and medium enterprises business respondents in TRAIN Law had an
average amount of net assets—the value of a company's assets minus its liabilities.
34
PROFILE OF THE RESPONDENTS
This section presents the profile of the 93 respondents from Micro, Small and
Medium Enterprises in Dagupan City in terms of type of business, capital in peso, years
of operations. For the statistical treatment of data gathered and collected, the frequency
count and percentage distribution were used.
Table 4.5 Type of Business

Type of business Frequency Percentage
Wholesale and Retail 36 39%
Trade
Accommodation and Food 11 12%
service Activities
Other service Activities 46 49%
Total 93 100%
Table 4.5 shows the type of business distribution of the respondents; Wholesale
and Retail Trade was thirty-six (36) or 39%, Accommodation and Food service Activities
was eleven (11) or 12% and other service Activities was forty-six (46) or 49%. Largely,
forty-six (46) or 49% are other service activities in terms of type of business. This result
suggests that it needs to adhere to the types of the business of an organization or
enterprising entity engaged in commercial, industrial, or professional activities towards
tax awareness about MSME of the TRAIN Law in Dagupan City.
Table 4.6 Capital in Peso

Capital in peso Frequency Percentage
P100,000-P500,000 54 58%
P500,001-P2,000,000 28 30%
P2,000,001 and up 11 12%
Total 93 100%
35
Table 4.6 shows above, fifty-four (54) or 58% of the respondents generate capital
in peso ranging from P100,000 to P500,000; twenty-eight (28) or 30% of respondents
their capital in peso is from P500,001 to P2,000,000, eleven (11) or 12% of respondents
capital in peso is from P2,000,001 and up respectively. Largely, fifty-four (54) or 58%
are P100, 000 to P500, 000 in terms of capital in peso. This result suggests that most
micro, small and medium enterprises business respondents in TRAIN Law that
participated had an average amount of capital in peso in building up their businesses.
Table 4.7 Years of Operations

Years of Operations Frequency Percentage
3-5 years 41 44%
6-10 years 39 42%
11 years and up 13 14%
Total 93 100%
Table 4.7 shows above, forty-one (41) or 44% of respondents generate years of
operations from 3 to 5 years; thirty-nine (39) or 42% of respondents their years of
operations is from 6 to 10 years and thirteen (13) or 14% of respondents years of
operations is from 11 years and up respectively. Largely, forty-one (41) or 44% are 3 to 5
years in terms of years of operations. This result suggests that most micro, small and
medium enterprises business respondents in TRAIN Law can take about a year but most
micro, small and medium enterprises businesses take at least two to three years to reach
profitability.
LEVEL OF AWARENESS ON THE IMPACT OF TRAIN LAW
36
This section presents the level of awareness on the impact of TRAIN Law of the
93 respondents from Micro, Small and Medium Enterprises Owners and Managers in
Dagupan City in terms of awareness, profitability, compliance, benefits, and decisions
making. For the statistical treatment of data gathered and collected, the frequency count
and percentage distribution were used.
Awareness of MSME about TRAIN Law

Table 4.8 Distribution of MSME Owners According to MSME Owners Knowledge in
TRAIN Law
Awareness Frequency Percentage
Disagree 9 10%
Slightly disagree 25 27%
Agree 56 60%
Strongly agree 3 3%
Total 93 100%
From the table 4.8, the researchers asked the respondents if they are well
knowledgeable about TRAIN Law implemented in Dagupan City and these were the
results; a frequency of nine (9) or 10% of the respondents disagreed, a frequency of
twenty-five (25) or 27% of the respondents slightly agreed, a frequency of fifty-six (56)
or 60% of the respondents agreed and a frequency of three (3) or 3% of the respondents
strongly agreed. Largely, fifty-six (56) or 60% awareness of the respondents agreed that
they are well knowledgeable about implementing TRAIN Law. This result suggests that
most micro, small and medium enterprises business respondents in TRAIN Law
generated awareness of MSME about TRAIN Law in distribution of MSME owners
according to MSME owner’s knowledge in TRAIN Law.
37
Based on the study of D’Amore-McKim, “Nothing is certain but death and taxes”
– this idiomatic expression generally attributed to Benjamin Franklin has long been
synonymous with certainty in a constantly changing world. A testament to Franklin’s
status as an iconic and prescient figure, the phrase is still an apt summary of most of
human history.
Not long after the beginning of civilization as we know it, people began to pay
taxes in support of the things we now take for granted: food, housing, infrastructure,
defense and much more. A history of taxation, therefore, reads almost like a history of
society and culture in general. Therefore, we should be aware of our obligations to pay
the tax whenever the changes of the law are implemented by what we need to pay our
taxes in our nations. And according to the data above, 60% of the micro, small and
medium enterprises owners are aware about the TRAIN Law.
Table 4.9 Distribution of MSME Owners According to their Curiosity in TRAIN Law
Disagree 9 10%
Agree 56 60%
Strongly agree 3 3%
Total 93 100%
From the table 4.9, the researcher asked the respondents if they inquired or
searched about TRAIN Law before starting their business and these were the results; a
frequency of five (5) or 5% of the respondents disagreed, a frequency of eight (8) or 9%
of the respondents slightly agreed, a frequency of sixty (60) or 65% of the respondents
agreed and a frequency of twenty (20) or 21% of the respondents strongly agreed.
38
Largely, sixty (60) or 65% awareness of the respondents agreed that they inquired or
searched about TRAIN Law before starting business. This result suggests that most
micro, small and medium enterprises business respondents in TRAIN Law that
participated had generated awareness of MSME about TRAIN Law in distribution of
MSME owners according to their curiosity in TRAIN Law.
The findings of this study shows that most of the MSME owners inquired or
searched about the TRAIN Law before starting their business. Based on the study of Mon
Abrea, tax payers have been asked before if there is a way to pay taxes without
compromises. It's a common sentiment among taxpayers that even if we pay the right
taxes, the BIR will still find a way to collect more taxes, plus penalties and compromises.
Maybe the reason why there are such opinions coming from different sources is because
most of the taxpayers did not inquire or had the right information about TRAIN Law.
Table 4.10 Distribution of MSME Owners Unawareness in TRAIN Law in terms of

Lack of Information from Management
Disagree 10 11%
Agree 47 50%
Strongly agree 22 24%
Total 93 100%
From the table 4.10, the researcher asked the respondents if their reason of
unawareness on TRAIN Law is because of lack of information coming from the
management and these were the results; a frequency of ten (10) or 11% of the
respondents disagreed, a frequency of fourteen (14) or 15% of the respondents slightly
39
agreed, a frequency of forty-seven (47) or 50% of the respondents agreed and a
frequency of twenty-two (22) or 24% of the respondents strongly agreed. Largely, forty-
seven (47) or 50% awareness of the respondents agreed that the unawareness of TRAIN
Law is because of lack of information coming from the management. This result
suggests that MSME owner’s unawareness in TRAIN Law is because of lack of
information coming from management.
The result proves that 50% of the MSME owners are suggesting that the
government should give an extra effort to disseminate the right information about tax in a
simple and understandable way.
Table 4.11 Distribution of MSME Owners Unawareness in TRAIN Law in terms of

Lack of Concern of MSME Owners
Disagree 8 9%
Agree 59 63%
Strongly agree 6 6%
Total 93 100%
From the table 4.11, the researchers asked the respondents if they think that the
reason of unawareness on TRAIN Law is because of lack of concern from micro, small
and medium enterprises owners and these were the results; a frequency of eight (8) or 9%
of the respondents disagreed, a frequency of twenty (20) or 22% of the respondents
slightly agreed, a frequency of fifty-nine (59) or 63% of the respondents agreed and a
frequency of six (6) or 6% of the respondents strongly agreed. Largely, fifty-nine (59) or
63% awareness of the respondents agreed that the unawareness of TRAIN Law is
40
because of lack of concern from micro, small and medium enterprises owners. This result
suggests that MSME owners unawareness in TRAIN Law is beacuse of lack of concern
of MSME owners.
This implies that one of the reasons that they are unaware is because they are not
interested in these types of business matters. What they are interested in, mostly of the
business owners, is how to gain more profit and how their businesses will survive, and
not look into other factors that may affect the flow of their profits. They are simply
ignorant in terms of how taxes work, maybe because it is a complex topic and not all of
the people have the interest to learn about taxes.
Table 4.12 Distribution of MSME Owners about Hard Copies of TRAIN Law
Disagree 3 3%
Agree 51 55%
Strongly agree 37 40%
Total 93 100%
From the table 4.12, the researcher asked respondents if they agree that the DTI
should give them a copy that explains their responsibilities and benefits on TRAIN Law
from micro, small and medium enterprises owners and these were the results; a frequency
of three (3) or 3% of the respondents disagreed, a frequency of two (2) or 2% of the
respondents slightly agreed, a frequency of fifty-one (51) or 55% of the respondents
agreed and a frequency of thirty-seven (37) or 40% of the respondents strongly agreed.
Largely, fifty-one (51) or 55% awareness of the respondents agreed that the DTI should
give them a copy that explains their responsibilities and benefits on TRAIN Law from
41
MSMEs. This result suggests that MSME owners are suggesting that it will help them if
the government will give clear and accessible copies about TRAIN Law.
The findings of this study shows that the DTI should give the owners of MSMEs
a copy that explains their responsibilities and benefits on TRAIN Law. Based on the
study of Bureau of Trade Regulation & Consumer Protection - Department of Trade and
Industry (DTI) Members, The Department of Trade and Industry (DTI) is a prime mover
of consumer welfare. It is committed to protecting the rights and interests of the
consumers and is also committed to developing policies and programs aimed at
sustaining the growth and development of the Philippine economy. Thus giving the right
information in an effective way is suggested to improve the performance of the taxpayers
in paying their taxes.
The change in the stability of the MSMEs in Dagupan City after the application of
the TRAIN Law in terms of Profitability
Table 4.13 The Stability of Micro, Small and Medium Enterprises in Dagupan City as
to Profitability Increased
Profitability Increased Frequency Percentage
Disagree 13 14%
Slightly Agree 32 34%
Agree 41 44%
Strongly Agree 7 8%
Total 93 100%
From the table 4.13, the researcher asked the respondents on how did the stability
of the micro, small and medium enterprises changed after the application of TRAIN Law.
In terms of increase in profitability , these were the results; thirteen (13) or 14% of the
respondents disagreed; thirty-two (32) or 34% of the respondents slightly agreed; forty-
one (41) or 44% of the respondents agreed and seven (7) or 8% of the respondents
42
strongly agreed. Largely, forty-one (41) or 44% of the respondents agree that their profits
have increased in the stability of the MSMEs. These results suggest that TRAIN Law has
directly impacted most of the micro, small and medium enterprises in Dagupan City that
participated and had generated awareness of MSME about TRAIN Law in the stability of
micro, small and medium enterprises in Dagupan City as profitability increased.
to Profitability Decreased
Profitability Decreased Frequency Percentage
Disagree 30 32%
Agree 27 29%
Strongly Agree 7 8%
Total 93 100%
From the table 4.14, the researcher asked the respondents on how did the stability
in terms of decrease in profitability of the micro, small and medium enterprises changed
after the application of TRAIN Law and these were the results; thirty (30) or 32% of the
respondents disagreed; twenty-nine (29) or 31% of the respondents slightly agreed;
twenty-seven (27) or 29% of the respondents agreed and seven (7) or 8% of the
respondents strongly agreed. Largely, thirty (30) or 32% of the respondents disagree that
their profits have decreased. These results suggest that the stability of some micro, small
and medium enterprises in Dagupan City as profitability have decreased.
the TRAIN Law in terms of Compliance
to Compliance
Compliance Frequency Percentage
Disagree 4 4%
43
Agree 56 60%
Strongly Agree 12 13%
Total 93 100%
From the table 4.15, the researcher asked the respondents if the TRAIN Law must
be permanently implemented and these were the results; four (4) or 4% of the
respondents disagreed; twenty-one (21) or 23% of the respondents slightly agreed; fifty-
six (56) or 60% of the respondents agreed and twelve (12) or 13% of the respondents
strongly agreed. Largely, fifty-six (56) or 60% of the respondents agree that the TRAIN
Law must be permanently implemented. This implies that TRAIN Law contributed much
to the enhancement of their business and TRAIN Law must be permanently implemented.
Table 4.16 Level of Agreement in terms of Weight of TRAIN Law to Micro, Small and
Medium Enterprises Owners
Disagree 15 16%
Agree 35 38%
Total 93 100%
From the table 4.16, the researcher asked the respondents if taxes are so heavy
that tax evasion is considered as a necessity for many to survive and these were the
results; fifteen (15) or 16% of the respondents disagreed; thirty (30) or 32% of the
respondents slightly agreed; thirty-five (35) or 38% of the respondents agreed and
44
thirteen (13) or 14% of the respondents strongly agreed. Largely, thirty-five (35) or 38%
compliance of the respondents agreed that taxes are so heavy and tax evasion is
considered as a necessity for many to survive. This implies that micro, small and medium
enterprises owners generally operate on low turnovers and low margins. Tax is
considered as a burden for many Micro, Small and Medium Enterprises entrepreneurs
since their earning is not as much. In most cases, tax is avoided not with the intention of
cheating but because of difficult circumstances.
Table 4.17 Level of Agreement of Micro, Small and Medium Enterprises Owners
According to Paying Taxes on Time
Disagree 2 2%
Agree 41 44%
Total 93 100%
From the table 4.17, the researcher asked the respondents if they are paying their
taxes on time to avoid penalties and these were the results; two (2) or 2% of the
respondents disagreed; ten (10) or 11% of the respondents slightly agreed; forty-one (41)
or 44% of the respondents agreed and forty (40) or 43% of the respondents strongly
agreed. Largely, forty-one (41) or 44% compliance of the respondents agree that they are
paying their taxes on time to avoid penalties, and they know that the longer the delay in
filing their tax return or paying their tax, the more they are going to end up paying larger
penalties and interest.
This result implies that the owners of MSMEs are considering the penalties
imposed by the government in their compliance. This makes the primary purpose of a
penalty evident. Because according to the Quality Planning Resource, the purpose of
45
creating penalties is to punish the offender and to deter future offending, not only by the
offender, but in the community at large.
Table 4.18 Level of Agreement of MSME Owners in terms of Reasonableness of TRAIN

Law Implementation in Dagupan City
Disagree 0 0%
Agree 63 68%
Total 93 100%
From the table 4.18, the researcher sought to find out if the implementation of
TRAIN Law in Dagupan is reasonable and these were the results; zero (0) or 0% of the
respondents disagreed; twenty-one (21) or 22% of the respondents slightly agreed; sixty-
three (63) or 68% of the respondents agreed; nine (9) or 10% of the respondents strongly
agreed. Largely, sixty-three (63) or 68% compliance of the respondents agree that the
implementation of TRAIN Law in Dagupan is reasonable. This implies that
implementation of TRAIN Law facilitates the growth of micro, small and medium
enterprises. The MSMEs owners found the TRAIN Law in Dagupan City as rational and
acceptable.
Table 4.19 Level of Agreement of MSME Owners According to the Proportionality of

the Taxes they Pay and the Benefits they Receive from the Government
Disagree 3 3%
Agree 51 55%
Total 93 100%
46
From the table 4.19, the researcher sought to find out if their tax compliance is
proportional to the benefits they gain from the government and these were the results;
three (3) or 3% of the respondents disagreed; twenty-two (22) or 24% of the respondents
slightly agreed; fifty-one (51) or 55% of the respondents agreed and seventeen (17) or
18% of the respondents strongly agreed. Largely, fifty-one (51) or 55% compliance of the
respondents agree that their tax compliance is proportional to the benefits they gain from
the government. This implies that micro, small and medium enterprises owners see that
they are paying their taxes in proportion to the benefits they receive from the
government.
the TRAIN Law in terms of Benefits
Table 4.20 Level of Agreement of MSME Owners in terms of TRAIN Law Benefits
Benefits Frequency Percentage
Disagree 11 12%
Agree 55 59%
Strongly Agree 6 6%
Total 93 100%
From table 4.20, the researcher sought to find out if the TRAIN Law benefits the
rich and is unfair to average income shop owners and these were the results; eleven (11)
or 12% of the respondents disagreed; twenty-one (21) or 23% of the respondents slightly
agreed; fifty-five (55) or 59% of the respondents agreed and six (6) or 6% of the
respondents strongly agreed. Largely, fifty-five (55) or 59% of the respondents agree that
the rich are unfair to average income shop owners. This implies that the present tax
47
system has worsened poverty and income inequality. The MSMEs owners believe that
even if they are paying their taxes according to the income they make, according to their
own assessment it is still unfair to them to pay such TRAIN Law.
Table 4.21 Distribution of MSME Owners According to Better Tax Collection System
Disagree 2 2%
Agree 37 40%
Strongly Agree 8 9%
Total 93 100%
From table 4.21, the researcher asked respondents if the TRAIN Law gave a better
tax collection system to Micro, Small and Medium Enterprises and these were the results;
two (2) or 2% of the respondents disagreed; forty-six (46) or 49% of the respondents
slightly agreed; thirty-seven (37) or 40% of the respondents agreed and eight (8) or 9% of
the respondents strongly agreed. Largely, forty-six (46) or 49% of the respondents
slightly agree that the TRAIN Law gave a better tax collection system to MSMEs. This
implies that micro, small and medium enterprises owners see that they have a better tax
collection system according to the benefits they receive from the government.
The findings of this study show that TRAIN Law gave a better tax collection
system to Micro, Small and Medium Enterprises. Based on the study of Janna Herron, if
you just cut a check to calculate your tax rate for the year, you may be wondering where
all those hard-earned taxes go. Unfortunately, you can’t earmark your tax to departments
or programs you support. Your taxes go into the bigger pool contributed by everyone else
and are allocated based on need and policy direction.
48
Even so, it is smart to understand how the government uses the collected taxes, in
this way taxpayers can be an engaged and informed citizen. The majority of tax helps to
fund defense, Social Security, Medicare, health programs and social safety net programs
such as food stamps and disability payments, along with paying off interest on the
national debt. Among these things, the MSME owners believe and agree that there is a
better tax collection system with the help of the implemented TRAIN law.
Table 4.22 Level of Agreement of MSME Owners According to the Proportionality of

the Experienced Better Programs they Receive from the Government
Disagree 3 3%
Agree 46 50%
Total 93 100%
From the table 4.22, the researcher sought to find out if after the implementation
of TRAIN Law, MSMEs experienced better programs coming from the government and
these were the results; three (3) or 3% of the respondents disagreed; thirty-three (33) or
35% of the respondents slightly agreed; forty-six (46) or 50% of the respondents agreed
and eleven (11) or12% of the respondents strongly agreed. Largely, forty-six (46) or 50%
of the respondents agreed that MSMEs experienced better programs coming from the
government. This implies that micro, small and medium enterprises owners see that they
experienced better programs in proportion to the benefits they receive from the
government.
49
the TRAIN Law in terms of Decision Making
Table 4.23 Distribution of MSME Owners According to Setting their Prices

Setting your prices Frequency Percentage
Disagree 34 37%
Agree 39 42%
Strongly Agree 4 4%
Total 93 100%
From table 4.23, the researcher asked the respondents in order to understand
further the impact of TRAIN Law, what are the effects of TRAIN Law on the decision
making of the management in terms of setting their prices and these were the results;
thirty-four (34) or 37% of the respondents disagreed; sixteen (16) or 17% of the
respondents slightly agreed; thirty-nine (39) or 42% of the respondents agreed and four
(4) or 4% of the respondents strongly agreed. Largely, thirty-nine (39) or 42% of the
respondents agree that it is agreed the effects of TRAIN Law is the decision of setting
their prices. This shows that their range of prices for their services and products vary
because of different factors and one those are the TRAIN Law they are paying.
The findings of this study showed that the MSME owners are considering the
TRAIN Law they have to pay in setting their prices. Based on the study of the Chamber
of Commerce of Metropolitan Montreal formerly known as the Board of Trade of
Metropolitan Montreal, the price you charge for your product or service is one of the
most important business decisions you make. Setting a price that is too high or too low
50
will - at best - limit your business growth. At worst, it could cause serious problems for
your sales and cash flow.
It suggests that when there is a higher tax, this means that the capital of their
products will also be affected. As the tax increases the ingredients or components needed
in the making of a certain product will also increase. In order to utilize a profit, the micro,
small and medium enterprises owners will also increase the price of the product they sell.
Table 4.24 Distribution of MSME Owners According to the Quality of their Product
Quality of product Frequency Percentage
Disagree 41 44%
Agree 29 31%
Strongly Agree 7 8%
Total 93 100%
From the table 4.24, the researcher asked respondents what are the effects of
TRAIN Law on the decision making of the management in terms of the quality of
product and these were the results; forty-one (41) or 44% of the respondents disagreed;
sixteen (16) or 17% of the respondents slightly agreed; twenty-nine (29) or 31% of the
respondents agreed and seven (7) or 8% of the respondents strongly agreed. Largely,
forty-one (41) or 44% of the respondents disagreed that the effects of TRAIN Law is the
decision of the quality of product. This implies that the TRAIN Law to them does not
greatly affect the quality of products and services that they offer. But the percentage
difference is low, so we can infer that to some owners, their quality of product is still
affected by TRAIN Law.
51
Table 4.25 Distribution of MSME Owners According to Selection of Retail Products
Kind of product Frequency Percentage
Disagree 19 20%
Agree 38 41%
Total 93 100%
From table 4.25, the researcher asked respondents if the TRAIN Law affects the
decision making of the management in choosing the kind of product they choose to retail
or sell and these were the results; nineteen (19) or 20% of the respondents disagreed;
twenty-four (24) or 26% of the respondents slightly agreed; thirty-eight (38) or 41% of
the respondents agreed and twelve (12) or 13% of the respondents strongly agreed.
Largely, thirty-eight (38) or 41% of the respondents agreed that the effects of TRAIN
Law is the decision of choosing the kind of product they choose to retail or sell. The
results significantly show that TRAIN Law affects the kind of product they choose to
sell.
Table 4.26 Distribution of MSME Owners According to Influence of TRAIN Law in

Choosing the Kind of Product they Sell
Kind of product Frequency Percentage
Disagree 19 20%
Agree 45 49%
Strongly Agree 7 7%
Total 93 100%
From table 4.26, the researcher asked the respondents what are the effects of it on
the decision making of the management in terms of the kind of product that will cost
them less to pay and these were the results; nineteen (19) or 20% of the respondent
52
disagreed; twenty-two (22) or 24% of the respondents slightly agreed; forty five (45) or
49% of the respondents agreed and seven (7) or 7% of the respondents that it is strongly
agreed. Largely, forty five (45) or 49% of the respondents agreed that the effects of
TRAIN Law is the decision of a kind of product that will cost them less to pay. The
results significantly show that they are choosing products to sell that will cost them less
tax to pay.
Table 4.27 Significant Relationship between Profile of the Respondents and Level of
Awareness on the Impact of TRAIN Law
Mean Standard Deviation N
Type of Business 2.1075 0.93788 93
I am well knowledgeable about the
TRAIN Law in Dagupan City. 2.5699 0.71320 93
Type of Business
Type of Business Pearson Correlation 1 0.005
Sig. (2-tailed) 0.963
N 93 93
I am well knowledgeable Pearson Correlation 0.005 1
about the TRAIN Law in Sig. (2-tailed) 0.963
Dagupan City. N 93 93
Table 4.27 reflects the significant relationship between the profile of the
respondents and level of awareness on the impact of TRAIN Law. The type of business
and knowledge about the TRAIN Law of the respondents appears to have a Pearson
correlation of 0.005, and sig. (2-tailed) of 0.963 respectively which indicates that there is
no significant relationship between the variables.
Table 4.28 Significant Relationship between Type of Business and Curiosity

of the Respondents about TRAIN Law
53
Business owners should
inquire or search about
TRAIN Law before starting 3.0215 0.72199 93
their business.
Type of Business
N 93 93
Business owners should Pearson Correlation 0.350 1
inquire or search about Sig. (2-tailed) 0.001
TRAIN Law before starting
their business. N 93 93
Correlation is significant at the 0.01 level (2-
tailed).**
and the curiosity of the respondents about TRAIN Law before starting their business
appears to have a Pearson correlation of 0.350, and sig. (2-tailed) of 0.001 respectively
which indicates that there is no significant relationship between the variables.
Table 4.29 Significant Relationship between Type of Business and Unawareness on

TRAIN Law due to Management
The reason for unawareness on
TRAIN Law is because of lack
of information coming from
the management. 2.8710 0.89959 93
Type of Business
N 93 93
The reason for unawareness on Pearson Correlation 0.377 1
TRAIN Law is because of lack of Sig. (2-tailed) 0.000
information coming from the
management. N 93 93
54
tailed).**
and unawareness of TRAIN Law is due to lack of information coming from the
management appears to have a Pearson correlation of 0.377, and sig. (2-tailed) of 0.000
respectively which indicates that there is a significant relationship between the variables
thus rejecting the hypothesis.
Table 4.30 Significant Relationship between Type of Business and Unawareness on

TRAIN Law due to MSME owners
TRAIN Law is because of lack of 2.6774 0.72474 93
concern from MSME owners.
Type of Business
N 93 93
concern from MSME owners. N 93 93
and unawareness of TRAIN Law is due to lack of concern from MSME owners appears
to have a Pearson correlation of 0.084, and sig. (2-tailed) of 0.426 respectively which
indicates that there is no significant relationship between the variables.
55
Table 4.31 Significant Relationship between Type of Business and Respondents should
have a copy of TRAIN Law
The DTI should give you a copy
that explains your
responsibilities and benefits on 3.3118 0.67532 93
TRAIN Law.
Type of Business
N 93 93
The DTI should give you a copy Pearson Correlation 0.650 1
that explains your responsibilities Sig. (2-tailed) 0.000
and benefits on TRAIN Law.
N 93 93

tailed).**
and DTI should give a copy that explains the responsibilities and benefits on TRAIN Law
appears to have a Pearson correlation of 0.650, and sig. (2-tailed) of 0.000 respectively
which indicates that there is a significant relationship between the variables thus rejecting
the hypothesis.
Table 4.32 Significant Relationship between Capital in Peso and Knowledge about the
TRAIN Law
Capital in Peso 1.7527 2.23439 93
I am well knowledgeable about
the TRAIN Law in Dagupan
City. 2.5699 0.71320 93
56
Capital in Peso
Capital in Peso Pearson Correlation 1 -0.156
N 93 93
I am well knowledgeable about the Pearson Correlation -0.156 1
TRAIN Law in Dagupan City. Sig. (2-tailed) 0.135
N 93 93
respondents and level of awareness on the impact of TRAIN Law. The capital in peso and
knowledge about the TRAIN Law in Dagupan City appears to have a Pearson correlation
of -0.156, and sig. (2-tailed) of 0.135 respectively which indicates that there is no
significant relationship between the variables.
Table 4.33 Significant Relationship between Capital in Peso and Curiosity of the
Respondents about TRAIN Law
Capital in Peso 1.7527 2.23439 93
Business owners should inquire
or search about TRAIN Law
before starting their business. 3.0215 0.72199 93
Capital in Peso
Capital in Peso Pearson Correlation 1 0.172
N 93 93
Business owners should inquire or Pearson Correlation 0.172 1
search about TRAIN Law before Sig. (2-tailed) 0.100
starting their business. N 93 93
curiosity of respondents about TRAIN Law before starting their business appears to have
57
a Pearson correlation of 0.172 and sig. (2-tailed) of 0.100 respectively which indicates
that there is no significant relationship between the variables.
Table 4.34 Significant Relationship between Capital in Peso and Unawareness on

TRAIN Law due to Management.
Capital in Peso 1.7527 2.23439 93
TRAIN Law is because of lack
of information coming from the 2.8710 0.89959 93
management.
Capital in Peso
N 93 93
I am well knowledgeable about Pearson Correlation 0.141 1
the TRAIN Law in Dagupan Sig. (2-tailed) 0.178
City. N 93 93
unawareness of TRAIN Law due to lack of information coming from the management
appears to have a Pearson correlation of 0.141 and sig. (2-tailed) of 0.178 respectively
Table 4.35 Significant Relationship between Capital in Peso and Unawareness on

TRAIN Law due to MSME owners.
Capital in Peso 1.7527 2.23439 93
The reason for unawareness
on TRAIN Law is because of
lack of concern from MSME 2.6774 0.72474 93
owners.
58
Capital in Peso
Capital in Peso Pearson Correlation 1 -0.150
N 93 93
The reason for unawareness on Pearson Correlation -0.150 1
unawareness of TRAIN Law due to lack of concern from MSME owners which appears
to have a Pearson correlation of -0.150 and sig. (2-tailed) of 0.150 respectively which
indicates that there is no significant relationship between the variables.
Table 4.36 Significant Relationship between Capital in Peso and Respondents should
have a copy of TRAIN Law.
Capital in Peso 1.7527 2.23439 93
The DTI should give you a
copy that explains your
responsibilities and benefits on 3.3118 0.67532 93
TRAIN Law.
Capital in Peso
N 93 93
The DTI should give you a copy that Pearson Correlation 0.607 1
explains your responsibilities and Sig. (2-tailed) 0.000
benefits on TRAIN Law. N 93 93
tailed).**
59
DTI should give a copy that explains the responsibilities and benefits on TRAIN Law
which indicates that there is a significant relationship between the variables thus rejecting
the hypothesis.
Table 4.37 Significant Relationship between Years of Operations and Knowledge

about the TRAIN Law.
Years of Operations 1.6989 0.70379 93
I am well knowledgeable
about the TRAIN Law in 2.5699 0.71320 93
Dagupan City.
Years of Operations
Years of Operations Pearson Correlation 1 -0.153
N 93 93
I am well knowledgeable about the Pearson Correlation -0.153 1
N 93 93
respondents and level of awareness on the impact of TRAIN Law. The years of
operations and knowledge about the TRAIN Law appears to have a Pearson correlation
of -0.153 and sig. (2-tailed) of 0.144 respectively which indicates that there is no
significant relationship between the variables.
Table 4.37 Significant Relationship between Years of Operations and Knowledge

about the TRAIN Law.
Business owners should
inquire or search about
TRAIN Law before starting 3.0215 0.72199 93
60
their business.
Years of Operations
Years of Operations Pearson Correlation 1 0.163
N 93 93
I am well knowledgeable about the Pearson Correlation 0.163 1
N 93 93
operations and curiosity of respondents about TRAIN Law before starting their business
Table 4.39 Significant Relationship between Years of Operations and Unawareness on

TRAIN Law due to Management.
on TRAIN Law is because of 2.8710 0.89959 93
lack of information coming
from the management.
Years of Operations
N 93 93
information coming from the N 93 93
management.
61
operations and unawareness of TRAIN Law due to lack of information coming from the
management appears to have a Pearson correlation of 0.058 and sig. (2-tailed) of 0.580
respectively which indicates that there is no significant relationship between the
variables.
Table 4.40 Significant Relationship between Years of Operations and Unawareness on

TRAIN Law due to MSME owners.
on TRAIN Law is because of 2.6774 0.72474 93
lack of concern from MSME
owners.
Years of Operations
Years of Operations Pearson Correlation 1 -0.129
N 93 93
The reason for unawareness on Pearson Correlation -0.129 1
operations and unawareness of TRAIN Law due to lack of concern from MSME owners
appears to have a Pearson correlation of -0.129 and sig. (2-tailed) of 0.219 respectively
Table 4.41 Significant Relationship between Years of Operations and Respondents

should have a copy of TRAIN Law.
62
The DTI should give you a
copy that explains your 3.3118 0.67532 93
responsibilities and benefits on
TRAIN Law.
Years of Operations
N 93 93

tailed).**
operations and DTI should give a copy that explains your responsibilities and benefits on
TRAIN Law which appears to have a Pearson correlation of 0.543 and sig. (2-tailed) of
0.000 respectively which indicates that there is a significant relationship between the
variables thus rejecting the hypothesis.
63
Chapter 5
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
The aim of this chapter is to present the conclusions drawn from the results of the
analysis of the questionnaires and interviews and then make recommendations for further
research.
Summary
Conclusions
This study uses student’s perceptions in answering questions related to the
factors that affects their skills in using accounting related computer applications. The
result of this research provides an overview to the future researchers. It is expected to
enhance the students understanding in the factors in improving their skills in using
accounting related computer applications. In addition, the future research may be
expanded to compare the perception of the students and the perception of the lecturer. 46
The findings of this study should serve as a starting point for future exploration of
the researchers of University of Pangasinan, in the factors that influence the improvement
of using computer applications. The outcome of this study also may be useful to the
instructor or lecturer to improve their teaching skills.
Further research may integrate these dimensions used in knowing the factors that
affects the skills of AIS students that adheres them to cope with their chosen program.
64
Recommendations
65
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%20is%20a%20prime,development%20of%20the%20Philippine%20economy
74
Appendix A: Letter of the Respondents
Dear Respondent,
Good day!
We are 3rd year Bachelor of Science in Accountancy students at PHINMA University of

Pangasinan. As for the completion of the partial requirement for our ACC 116
Accounting Research Methods subject, we are researching about “Awareness of Micro,
Small and Medium Enterprises on the Impact of TRAIN Law”. In line with this
research, accurate data gathering is a must, hence the reason for conducting a survey.
The questionnaire is designed to further understand customer behavior and perceptions

that will be helpful in formulating every aspect of the research. Gathered data will be
treated with utmost confidentiality and shall be only used for research purposes. If you
agree to participate in this survey, please answer the questions as best as you can. Your
insight and cooperation is earnestly solicited and shall be highly appreciated.
Thank you!
Sincerely yours,
LOPEZ, ALLIA M.
ARAOJO, JANE SHYRYLL C.
BANAYAT, MARIFE
CLATA, JESSICA
DE VERA, KING DAVID P.
GAMUEDA, PAMELA ANN MARIE L.
LATRAS, FRANCES MAE L.
PETCHAY, KAREN JOY C.
VILLANUEVA, ROSEMARIE C.
Researchers
MARK JOSEPH M. MUÑOZ, MBA

ACC 116 Instructor
75
Appendix B: Survey Questionnaire
I: Demographic Characteristics
Name: Owner of the shop Manager of the Shop
Name of shop (optional): _______________
1. Gross Sales in peso (monthly):
P100, 000-150,000 P150, 001-250,000 P250, 001-300,000
2. Taxable income in peso (monthly):

P 25,000-50,000 P50, 001-75,000 P75, 001-100,000
3. Net Asset:
P 3M and bellow P3, 000,001-11M 11,000,001 and Up
II: Profile of Respondents as to:
A. Capital in peso:
P100, 000-500,000 P500, 001-2M P2, 000,001 and Up
B. Years of Operations
3-5 Years 6-10 Years 11 Years and Up
C. Type of business:
Wholesale and Retail Trade
Accommodation and Food service Activities
Other service Activities
III. Level of awareness on the impact of TRAIN Law to the respondents.

A. Possible reasons why some MSME owners are unaware about TRAIN law.
Disagree Slightly Agree Strongly

disagree Agree
I am well knowledgeable about the TRAIN Law
in Dagupan City.
Business owners should inquire or search about
TRAIN Law before starting their business.
The reason of unawareness on TRAIN Law is
because of lack of information coming from the
management.
76
The reason of unawareness on TRAIN Law is
because of lack of concern from small retail
shop owners.
The DTI should give you a copy that explains
your responsibilities and benefits on TRAIN
Law.
B. The change in the stability of the MSMEs in Dagupan City after the application of the
TRAIN Law in terms of Profitability.

Agree Agree
After the implementation of TRAIN law, profits
have increased
After the implementation of TRAIN law, profits
have decreased
C. The change in the stability of the MSMEs in Dagupan City after the application of the
TRAIN Law in terms of Compliance.

Agree Agree
The train law must be permanently
implemented.
Taxes are so heavy that tax evasion is
considered as a necessity for many to survive.
You are paying your taxes on time to avoid
penalties.
The implementation of Tax mandates in
Dagupan is reasonable.
Your tax compliance is proportional to the
benefits you gain from the government.
D. The change in the stability of the MSMEs in Dagupan City after the application of the
TRAIN Law in terms of Benefits.

Agree Agree
The TRAIN Law benefits the rich and is unfair
to average income shop owners.
The TRAIN Law gave better tax collection
system to MSMEs.
After the implementation of TRAIN Law,
MSMEs experienced better programs coming
77
from the government.
E. The change in the stability of the MSMEs in Dagupan City after the application of
the TRAIN Law in terms of Decision Making.

Agree Agree
Setting your Prices
When the tax you are paying is higher, you set
your prices high as well.
Quality of Product
The quality of your product decreases, when the
tax you are paying is high.
Kind of Product
Tax affects what kind of product you choose to
retail.
You chose to sell this kind of product because it
will cost you lesser tax to pay.
78
Appendix C: Sample Computation
The researchers set a criteria of the possible respondents to be surveyed based on
their monthly income:
Criteria
P100, 000-150,000
P150, 001-250,000
P250, 001-300,000
The gathered data from Dagupan Business Center is a total of 5,593 population of
business enterprises here in Dagupan City. Only 1213 respondents qualified in the said
criteria randomly selected in the barangay near the residence of the researchers because
of the pandemic and the time constraint.
Applying Slovin’s Formula:
N
n=
1+ N (e¿¿ 2) ¿
Where:
N = Population
n = sample
e = margin of error (10%)
1213
n=
1+1213(0.10¿¿ 2) ¿
n=92.38 or 93 (rounded off to the nearest whole number)
List of Barangays Sample

Mangin 17
Bonuan-Binloc 12
Perez 13
Pantal 14
Mayombo 24
Lasip-Chico 13
Total 93
79
LOPEZ,
ALLIA M.
#139 Mangin Dagupan
City, 2400
CAREER OBJECTIVE
To be able to apply the skills and knowledge I have
acquired in business accounting course regarding tax
allialopez729@gmail.com | +639274275292
mandates.
SKILLS
 Professional written and verbal
communication skills
 Corporate team ethics and expertise
EDUCATIONAL BACKGROUND  Customer Service Skills
University of the Philippines-Baguio
Bachelor of Arts in Communication CHARACTER REFERENCES
2018 - 2019
Mr. Mark Joseph Munoz
PHINMA University of Pangasinan Research Adviser
Bachelor of Science in Accountancy University of Pangasinan
2019 – 2021
mmmunoz@up.phinma.edu.ph
ELIGIBILITY AND CERTIFICATIONS Mr. Mosses Jordan Reyno

Work Immersion at Asia Career Senior High Adviser
under Accounting Department Dagupan City National High School
2018 danreyno@gmail.com
Mdm. Erly G. Datario

AFFILIATIONS High School Principal
Junior Philippine Institute of Dagupan City National High School
Accountants 0945372863
Member
2019-2021
College of Management and

Accountancy Student Council
SOCO Officer
2020-2021
80
CAREER OBJECTIVE
ToARAOJO, JANEmySHYRYLL
continuously enhance C. and
knowledge, skills
experience by getting involved in challenging work
#184 Brgy. Dorongan
environment Punta Mangatarem,
and utilize Pangasinanand
them for personal
jaco.araojo@up.phinma.edu.ph
organizational growth to the best of| my
+639064068186
ability.
SKILLS
 Good communication skills.
 Proficient in using Microsoft Office (Word,
EDUCATIONAL BACKGROUND
Excel, PowerPoint).
 Ability to cope and work with people in groups
Mangatarem I Central School -
Elementary with positive approach, believes in teamwork,
2007 – 2012 proactive and highly motivated.
Mangatarem Catholic School -
Junior High School CHARACTER REFERENCES
2012 – 2016
Mrs. Hyacinth L. Balila
PHINMA University of Pangasinan – Elementary Adviser
Senior High School Mangatarem I Central School
2016-2018
PHINMA University of Pangasinan Mrs. Kristina N. Valencia

Bachelor of Science in Accountancy JHS Adviser
2018 – 2021 Mangatarem Catholic School
Hon. Philip Theodore E. Cruz

AFFILIATIONS Mun. Councilor
Junior Philippine Institute of LGU-Mangatarem
Accountants
Member
2018-2021
81
82
BANAYAT, MARIFE NARVASA
269 Sitio America Bonuan Binloc,
Dagupan City 2400
marifebanayat24@gmail.com | +639456182146
CAREER OBJECTIVE
To secure a challenging position to fully utilize my

training and skills. And to make a significant
contribution to the success of the company
PHINMA University of Pangasinan SKILLS

2018 – 2021  I can manage my time wisely.
 Good communication skills.
ELIGIBILITY AND CERTIFICATIONS
Has good collaboration and leadership skills
National Certificate Level III in
Bookkeeping
Technical Education and Skills
CHARACTER REFERENCES
Development Authority
April 8, 2017
Ms. Monaliza M. Camacho
Adviser in Grade 11 and Grade 12
AFFILIATIONS Manaoag National High School
Junior Philippine Institute of +639958890923
Accountants
PHINMA University of Pangasinan Mr. Manuel Jaime Vinuya
Member Science Department Head in High School
2018-2021
Manaoag National High School
diegosilang@email.com
Mr. Alfredo F. Valenzuela

Math Adviser in Grade 6
Cabanbanan Elementary School
+639957569180
83
CLATA,
JESSICA F.
Barangay Sabangan San
Fabian, Pangasinan
jefe.clata@up.phinma.edu.ph| +639639985219
CAREER OBJECTIVE
Recent college student and motivated student. Who took

up and finished the two taxation subjects.

SKILLS
2018 – 2021
 Problem solving: able to deal with problems
calmly band efficiently as shown on regular basic
AFFILIATIONS
in my role.
Junior Philippine Institute of
Accountants
PHINMA University of Pangasinan CHARACTER REFERENCES
Member
2018-2021 Ms. Vangie Mae Manaois
JPIA Adviser
84
DE VERA,
KING DAVID
P.
#145 Brgy. Quintong,
CAREER OBJECTIVE
San Carlos City,
Pangasinan 2420
To be able to apply the current analysis and enhance skill
that Ideveradavid22@gmail.com
have adapted in accountancy| +639217304968
subject concerning
tax mandates in TRAIN Law.
SKILLS
Quintong Elementary School
2006-2012  Having ability to analyze the comprehensive
problem regarding tax.
Tandoc National High School
(Junior and Senior High)
 Good in intercommunication skill.
2012-2018  Proficient in using computer and software
application.
2018 – 2021 CHARACTER REFERENCES
ELIGIBILITY AND CERTIFICATIONSND Ms. Vangie Mae Manaois

JPIA Adviser
Passer of Collegio de Dagupan PHINMA University of Pangasinan
Scholarship Exam
AFFILIATIONS Mrs.Cherrie Mae Nadora

Junior Philippine Institute of Senior High Adviser
Accountants Tandoc National High School
PHINMA University of Pangasinan 09484584375
Member
2018-2021
85
86
GAMUEDA,
PAMELA ANN
Jewelville Subd. Brgy.
Anolid, Mangaldan,
CAREER OBJECTIVE Pangasinan
Secure a responsible career opportunity to fully utilize
my training and skills, while making a significant
contribution to the success of the business
palo.gamueda@up.phinma.edu.ph | +639616070610
SKILLS
 Proficient in using Microsoft Applications (MS Word,
MS Excel, MS Powerpoint)
 Have a strong communication skills and very keen to
details
 Good at organization and prioritize work

2018 – 2022
Ms. Vangie Mae Manaois
JPIA Adviser/Research Co-Adviser
AFFILIATIONS
vdmanaois@up.phinma.edu
Accountants
Mr. Mark Joseph Munoz
Vice President for Graphics and Research Adviser
Publications University of Pangasinan
2019-2021 mmmunoz@up.phinma.edu.ph
Mr. Mosses Jordan Reyno

Senior High Adviser
Dagupan City National High School
danreyno@gmail.com
87
LATRAS,
FRANCES
MAE L.
#147 Lenor Road
CAREER OBJECTIVE
Mancup, Calasiao,
Highly motivated entrepreneurs are looking to join a
Pangsinan
professional organisation, where skills and expertise can
frla.latras@up.phinma.edu.ph
exploit | +639455825830
business development potential.
SKILLS
 Communication abilities: I can effectively
transmit to technical or nontechnical audiences
complicated concepts and ideas.
 Computer Literacy: I have extensive computer
expertise in Microsoft Word, Excel, PowerPoint,
Calasiao Comprehensive National
and so on.
High school - Junior High and
Señior High  Technical abilities: I am capable of reading and
2012 - 2018 solving the problems of the mathematical words
in certain drawings and specifications.
2018 – 2022 CHARACTER REFERENCES
Mrs. Yasmin J. Evangelista
ELIGIBILITY AND CERTIFICATIONS Adviser
National Certificate Level III in Calasiao Comprehensive National High School
Bookkeeping
NCI III Bookkeping Ms. Veronica Emmanuel Jaime Jayme
June 7, 2019
Finance Employee
AFFILIATIONS vjjayme@gmail.com
+639569662793
Accountants
PHINMA University of Pangasinan Ms. Camille B. Aquino
Member Bookstore Employee
2018-2021 PHINMA University of Pangasinan
88
89
PETCHAY, KAREN JOY C.
08 Sitio Pagas, Nagsaing Calasiao, Pangasinan
Kpetchay123@gmail.com | +639519731033
CAREER OBJECTIVE
To enhance my skills and knowledge regarding
EDUCATIONAL BACKGROUND Taxes specifically the new Amendment of Taxes:
TRAIN LAW
Calasiao Comprehensive
National High School
Grade XII Senior High School SKILLS
AFFILIATIONS Can analyze and solve some Tax problems.

Accountants
Member
2018-2021 Mrs. Fely Garcia
CMA Secretary
Mrs. Yasmin J. Evangelista

Senior High Teacher
Calasiao-Comprehensive NHS
Mrs. Grace M. Balberan

Junior High Teacher
Doyong-Malabago NHS
90
VILLANUEVA, ROSEMARIE
CASILANG
278 Lasip Chico, Dagupan City 2400
vrosemarie14@gmail.com | +639552495471
CAREER OBJECTIVE
Seeking a challenging research study with
EDUCATIONAL BACKGROUND implementations that provides an opportunity to
capitalize skills and abilities in the field of taxes.
Juan L. Siapno Elementary School
Grade 1 - 6
2006 – 2012 SKILLS
Dagupan City National High School  Ability to work independently or as part of a

Junior High School (SPA) team.
2012 – 2016  Highly organized and efficient.
 Ability to analyze and balance.
Dagupan City National High School
Senior High School (ABM)  Ability to be creative in a way.
2016 – 2018
Bachelor of Science in Accountancy Mr. Ian Midrick Delos Santos
2018 – 2022 Professor
ELIGIBILITY AND CERTIFICATIONS PHINMA University of Pangasinan
Artist of the Year
Mr. Widmark C. Balmores
2010 – 2012
Media Artist of the Year SPA & Senior High School Teacher
2014 – 2016 Dagupan City National High School
With Honors +639177731216
2017 – 2018
Hon. Marc Brian C. Lim

AFFILIATIONS
Mayor
Junior Philippine Institute of LGU Dagupan City
Accountants
Member
2018 – 2021
91
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Awareness of Micro, Small and Medium Enterprises on the Impact of TRAIN Law

MARK JOSEPH M. MUÑOZ, MBA VANGIE MAE M. MANAOIS, CPA

This is to certify that the completed research mentioned above submitted by

KIM MARK F. BIASON, CPA, LLB MARY GRACE V. VILLANUEVA, CPA

DR. TEOFILA S. ALBAY, CPA

APPROVED AND ACCEPTED as partial fulfillment of the requirements for the

DR. TEOFILA S. ALBAY, CPA

Tax is one of the essential requirement in a business. It supplies the government

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THE PROBLEM AND ITS BACKGROUND

The imposed tax is considered as the backbone or lifeblood of the government. It

from Philippine Statistics Authority (PSA) recorded a total of 1,000,506 business

establishments, followed by small enterprises at 10% (99,936) and medium enterprises at

The development of MSMEs is seen as the way to accelerate the achievement of

wider socio-economic goals, including poverty modification. The determination of what

(MSMEs)”. MSMEs generally operate locally, thus offering larger employment

effect on January 1, 2018. According to Department of Finance National Tax Research

and social services.

According to several research firms, Micro and Small-medium sized businesses

Dagupan is considered as one of the fast emerging cities in the Philippines. It is

impacts of the TRAIN Law in their businesses?

The research aims to generate a concrete evidence about the awareness of

government. Interviews and surveys will be conducted simultaneously to local MSMEs.

Researchers shall have a comprehensive data investigation on both local businesses

more importance on the unknown variables in the study.

Statement of the Problem

and Medium Enterprises on the Impact of TRAIN Law in Dagupan City.

Specifically, it sought to answer the following questions:

1. Profile of Respondents as to:

awareness on the impact of TRAIN Law?

Medium-sized Enterprises in Dagupan and the level of awareness of MSMEs on

the impact of TRAIN Law.

Assumptions of the Study

stated in simple, brief, generally accepted statement.

TRAIN law is beneficial to the Filipinos.

provide better services for their taxpayers.

the importance of understanding the significance of tax.

Significance of the Study

Micro, Small and Medium Enterprises

Business course Students.

The Local Government Unit

Scope and Limitations

This study will be conducted to determine the awareness of Micro-Small and

collection will be conducted to 93 randomly selected Micro, Small and Medium

Enterprises owners in Dagupan City who will represent the population.

questionnaires which are prepared by the researchers.

from taxation under the Internal Revenue Code (IRC).

refers to any business activity or enterprise engaged in industry, agribusiness

and/or services, whether single proprietorship, cooperative, partnership or

Table 1.1 Micro, Small and Medium Enterprise Classification

more efficient to promote investments, create jobs and reduce poverty.

REVIEW OF RELATED LITERATURE

This chapter contains the existing literature by different scholars or research

the theoretical review.

would start to practice healthier living.

According to De Vera, manufacturing business has lowered performances from

This would also mean high unemployment rates in the future.

areas but may benefit the producer.

According to Inchauste & Lustig, which emphasizes determining the different

from the government implemented policy in promoting growth, widening of

the implemented plans.

income class families.