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Tax Reform for Acceleration and Inclusion (TRAIN): An Instrument for National Survival and Growth

I. Introduction
Real positive change or Tunay na pagbabago has always been the mantra of the Duterte
Administration since he took his oath of office. This change include comprehensive and
inclusive growth manifested by a comfortable life for all, improved public services, more and
better jobs and more money put in the peoples pockets.

Thus, the President, during his first State of the Nation Address urged both houses of the
Congress to pass in haste the Tax Reform for Acceleration and Inclusion Bill.

The aforementioned tax policy reform is seen as a measure to raise additional investments,
along with sustainable borrowings, budget reform, and tax and customs administration
reform. These measures are anchored in the vision of reducing poverty rate from 21.6% in
2016 to 14% in 2022, equating to 6 million Filipinos uplifted, and further eradicating it by
2040; increase gross national income from USD 3,500 to USD 4,100 in 2022, and to 12,000
USD in 2022 to achieve high income status where Malaysia and South Korea are today.

II. What is TRAIN?

In essence, the Tax Reform for Acceleration and Inclusion (TRAIN) is the re-modelling of the
Philippines antiquated tax system to be simpler, fairer and more efficient for all, while also
raising the resources needed to invest in infrastructure and people and to lessen the overall
tax burden of the poor and the middle class.

It could be noted that among the neighboring Southeast Asian countries, Philippines has the
highest rate of income tax, thus tantamount to lesser money taken home by the working class.

Comparison of the tax rate imposed in the Philippines vs other neighboring countries.

III. Scope of TRAIN

Tax Reform proposal will be able to fund investments in

Education- Achieve 100% enrollment and completion rates, build 13,553 classrooms, hire
181,980 more teachers between 2017 and 2020
Infrastructure- fund infra programs of dpwh consists of major highways, expressways and
flood control projects
Investment needs-
Health- Upgrade 704 local hospitals, 100% coverage of philhealth, build 15,988 new barangay
health stations, hire additional doctors, nurses, dentists, pharmacists, med tech, public health
associates and UHC implementers.