TRAIN Law, like the other laws and regulations that have been implemented, has

also its pros and cons. One advantage of TRAIN is that income taxpayers who earn
approximately P22,000 monthly and below are now exempted from income tax payment.
These employees will be able to receive their salary without any deductions because of
tax. Train will also lower estate tax. Taxpayers would now have to pay a fix rate of 6
percent (6%) for the net estate with the standard deduction of P5 million. The said law
changed the value-added tax (VAT) and made it “fairer” after it revoked 54 special laws
that provided nonessential VAT exemptions. But due to these reduced taxes, the
government need to make up for loss of revenue. As a result, certain goods will have
higher taxes. Buyers and consumers should expect higher prices for fuel and gas,
electricity, vehicles, tobacco, and other products and services. Though income taxes will
greatly decrease for almost all employees, they would need to spend more money on
things that they might need. Documentary stamp tax (DST), which is a tax levied on
special documents, papers, agreements, etc., increased 50 percent (50%) to 100 percent
(100%), except for property, savings and nonlife insurance. Foreign currency deposit
units increased from 7.5 to 15-percent (7.5%-15%) final tax on interest income. Capital
gains of non-traded stocks increased from 5 to 10-percent (5%-10%) to 15-percent (15%)
final tax on net gains only.