The Tax Reform for Acceleration and Inclusion (TRAIN) law is one of the first among

many tax reform measures of the Duterte administration. The goal of the TRAIN law is to create
a more just, simple, and effective tax collection system.
Despite criticisms, the TRAIN law has its strong points. One is the reduced personal
income tax. Government employees, the self-employed and the professionals with an annual
salary of 250,000 pesos and below will be exempted of income tax. The tax rates for the other
salary brackets have also been lowered compared to the old tax system. With this, people can
get to enjoy more of their salary, and they can spend more on goods and services. With increased
spending, more money will flow to the economy.
Another good point of the TRAIN law is its care for public health. The increased tax on
some of the sugar-sweetened products (e.g., cola products) is an excellent way to decrease the
number of people patronizing such products which are considered dangerous to a person’s well-
being. With the exemption of tax for healthier products such as milk, 100% natural fruit and
vegetable juices, the consumers can be given a choice and opt for these healthier alternatives
since it will be cheaper. The tobacco excise tax can also help in deterring people from buying
tobacco products. With this, the population that might suffer from tobacco-related illnesses will
decrease. Furthermore, the TRAIN law lowered the prices of medicines for diabetes, high
cholesterol, and hypertension, which is a massive help to the general public.
It is also to be noted that the said decree cares for its environment in a way that it helps
the country shift towards a green environment. The increase in tax for the non-hybrid cars will
somehow let the consumers opt for the hybrid ones which are considered friendlier to the
environment. Furthermore, the increased tax on coal and other minerals, in a way, ensures lesser
use or mine of these non-renewable resources. After all, companies would want to gain more
profit rather than to incur more costs. With this, our non-renewable resources will be extended,
preserving some for the future. Exempting the renewable energy sources from the 12% VAT is
also useful as it helps in the move towards the use of such energy sources.
The TRAIN law indeed has its merits. However, it also has its share of setbacks. One is
the inevitable increase in price for market goods and commodities due to increased tax on fuel
and increased cost of transportation. It is said that only those with a stable source of income, such
as the government employees, are the ones who can genuinely benefit at its peak from this said
law. With higher taxes and inflation, those with no permanent source of income are at a significant
disadvantage.