PERCEPTIONS OF GRADE 12 ABM STUDENTS OF TARLAC

AGRICULTURAL UNIVERSITY-LABORATORY SCHOOL S.Y 2019-2020 ON

TRAIN LAW

Thesis Proposal

Jennieca Joyce Alagar Tablarin

Ann Gel Antic Ulanday
August 2019
 CHAPTER I
INTRODUCTION

Despite various reform efforts over the years, the tax system in the Philippines is

weighed down by persistent weaknesses. Tax rates are high relative to the country’s

ASEAN neighbors yet revenue productivity remains low. Filipino individual taxpayers

are overburdened by personal income tax brackets that have not been indexed to inflation,

resulting in bracket creep. The corporate income tax rate is among the highest in the

ASEAN region, adversely affecting the private sector’s competitiveness, especially in the

face of ASEAN integration and increasing globalization. The fiscal incentive system is

plagued by redundant incentives that result in sizable foregone revenues (Medalla 2002),

and as such need to be rationalized. The base of the value-added tax has become too

narrow because of numerous exemptions. Inflation has eroded the real value of peso-

denominated petroleum excise tax rates, and the regime generally suffers from efficiency

issues. Finally, taxation of financial instruments lacks neutrality as rates vary according

to the type of instrument, maturity, currency, and residency of depositor/ transacting

party. As a result, the tax system has continually failed to meet known benchmarks on

revenue collection and constrained the national government’s ability to finance inclusive

growth (Reside and Burns 2016). Amidst strong macroeconomic fundamentals and

improved credit ratings in recent years, job creation and poverty reduction have remained

elusive as low tax effort and weak public investment management reduced government
spending on infrastructure, education, and health (World Bank 2014). A comprehensive

tax reform effort appears to be well-justified not only in light of these issues but also of

the piecemeal character of past reforms to the tax system.

In response to these issues, the TRAIN Law is implemented. The Tax Reform for

Acceleration and Inclusion (TRAIN) Law is the first tax reform program on President

Rodrigo Roa Duterte’s administration and was sponsored by Senator Sonny Angara. The

law was signed by President Duterte last December 2017 as Republic Act 10963. The

TRAIN Law includes the lowering of the individual income taxation, reducing Value-

Added Tax base, increasing taxes on petroleum products and automobiles, and

introducing taxes for Sugar – Sweetened Beverages and cigarettes.

The TRAIN law is banking on the economic growth that will be generated by the

infrastructures to be built and whose funds will be drawn from the tax revenues, as well

as from foreign development assistance whose release is premised on the approval of the

TRAIN law. It is also hoped that the so-called “Build Build Build” initiative will generate

demand for construction-related work.

By the implementation of TRAIN Law, Filipino – ordinary citizens, employees,

employers, the self – employed, the poor and the rich were all affected. In line with this

issue.
Statement of the Problem

This research work aims to answer the following questions:

1. How may the students be described as to:

a. Gender

b. Average daily allowance

c. Degree to pursue

2. What are the student’s perceptions towards TRAIN Law?

3. What are the assessment of the students regarding the TRAIN Law?

Objectives of the Study

This study will accomplish the following objectives:

1. To determine the Grade 12 ABM student’s profile in terms of:

a. Gender

b. Average Daily Allowance, and

c. Degree to pursue

2. To determine the student’s perceptions towards TRAIN Law.

3. To determine the assessment of the students towards TRAIN Law.

Hypothesis of the Study

1. There is no significant relationship between:

a. the gender and the assessment of the students towards TRAIN Law.

b. the future degree to pursue and the assessment of the students towards

TRAIN Law.

2. There is a significant relationship between the level of awareness and the student’s

perceptions towards TRAIN Law.

Scope and Limitations

This study only focuses on the Perceptions of Grade 12 ABM Students of Tarlac

Agricultural University- Laboratory School S.Y. 2019-2020 on TRAIN Law.

Significance of the Study

This study aims to gauge the assessment and perceptions of the students on

TRAIN Law. This study will help the students to raise their awareness towards the said

law and to be knowledgeable for future purpose.

Definition of Terms

For the purpose of clarification , the following keys are hereby defined:

Average Daily Allowance – is the amount of money that an employee is entitled to on a

daily basis.

Awareness – knowing and understanding a lot about what is happening in the world or

around you. Having or showing realization, perception, or knowledge.

Tax – an amount of money that a government requires people to pay according to their

income, the value of their property, etc,. and that is used to pay for the things done by the

government.

TRAIN Law – the Tax Reform for Acceleration and Inclusion (TRAIN) Act, officially

cited as Republic Act No. 10963, is the initial package of the Comprehensive Tax Reform

Program (CTRP) signed into lawby President Rodrigo Duterte on December 19, 2017.