Effects of TRAIN Law on Government Workers' Purchasing Power in Region XII

JMJ Marist Brothers
NOTRE DAME OF MARBEL UNIVERSITY

Graduate School
City of Koronadal, South Cotabato
Effects of Tax Reform for Acceleration and Inclusion (TRAIN) Law to the
Purchasing Power of Government Workers in Region XII
In Partial Fulfillment of the Requirements in PA 250

(Advanced Research and Statistical Design)
ACOSTA, Kim Anthony N.
July 2019
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Graduate School
TABLE OF CONTENTS
Title Page…………………………………………………………………………………..………i
Table of Contents……………………………………………………………..…………………...2
Introduction
Background of the Study………………………………………………………………….3
Review of Related Literature……………………………………………………………...6
Statement of the Problem………………………………………………………………….7
Conceptual Framework……………………………………………………………………7
Significance of the Study………………………………………………………………….8
Scope and Limitation……………………………………………………………………...9
Definition of Terms………………………………………………………………………..9
Methodology
Research Design………………………………………………………………………….10
Research Locale………………………………………………………………………….11
Development of Research Questionnaire………………………………………………...13
Data gathering procedure………………………………………………………………...13
Data Analysis…………………………………………………………………………….15
Ethical Considerations…………………………………………………………………...15
References………………………………………………………………………………..17
Appendix
Appendix A: Research Survey Questionnaire…………………………………………...20
Appendix B: Informed Consent………………………………………………………….22
Appendix C: Certificate of Thesis Editing……………………………………………….28

Effects of Tax Reform for Acceleration and Inclusion (TRAIN) Law to the Purchasing Power of Government
Workers in Region XII Page 2
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INTRODUCTION
There have been major changes in tax systems in several countries over the last decades
for variety of economic systems and levels of developments. The motivation for these reforms
has varied from one country to another and the thrust of reforms has differed from time to time
depending on the development strategy and philosophy of times (Rao, 1992). In China, the
Chinese Vice-Premier Li Keqiang has urged more taxation reforms and structural tax cuts to
boost industrial upgrading and the transformation of the economic growth pattern by expanding
trials of replacing business tax with a value-added tax (Xinhua, 2012). Whereas in Vietnam, they
have amended and supplemented the current laws on corporate income tax, personal income tax,
value added tax, special sales tax and natural resources tax (Tan, 2017). Meanwhile, this study
aims to analyze and describe the effects of TRAIN Law to the purchasing power of government
workers particularly in Region XII. It will also ascertain the implications of TRAIN Law and the
successes achieved in their implementation.
In the epoch of fiscal crises, the ideas of tax reform had once taken center stage thus
yielding the Philippines to undergo major resurgence towards its taxation system with the newly
amended Tax Reform for Acceleration and Inclusion (TRAIN) Law. On December 19, 2017,
President Rodrigo R. Duterte signed into law the Package 1 of the Comprehensive Tax Reform
Program (CTRP) also known as the Tax Reform for Acceleration and Inclusion (TRAIN) as
Republic Act No. 10963. The Law took effect on January 1, 2018 which aims to make the
Philippine Tax System simpler, fairer, and more efficient to promote investments, create jobs and
reduce poverty (Mangondato et. al., 2018). It also hopes to provide an increase in the take-home
pay of salaried Filipino by reducing income tax rate while increasing and rationalizing tax rates
in other goods and services. Along with these objectives, the CTRP also aims to raise revenues to
help fund the President’s “Build, Build, Build” Program which will give sustainable and
inclusive growth and finance investments through enhanced education, health and social
services. According to Gimena (2018), TRAIN Law has a great impact to the inflation rate of an
economy and consequently disrupt the purchasing power of an individual. In essence, inflation
rate is affected by several issues including changes in supply and demand which also affects
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prices of goods and services, interest rates, credit ratings, tax systems and programs and other
factors affecting an economy (Hayes, 2019). Purchasing power is an important indicator of the
economic condition of the nation. All else being equal, inflation decreases the amount of goods
or services one is able to purchase; and reduced purchasing power leads to a decrease in living
standards (Dascil, 2018). According to Ingram (2019), any changes in tax systems of a nation
will hugely affect the inflation which may lead to downturn of economic activities and then
provoke decrease in purchasing power. Rationalizing about the effects of TRAIN law, the
Philippine government expects to achieve economic growth, healthier and wealthier Filipinos
(Villar, 2018).
Several changes were made to our tax system including reduction of personal income
taxes, higher excise taxes on automobiles, petroleum products, tobacco, sugar-sweetened
beverages and other non-essential goods, reduction of donor’s and estate taxes to a 6 percent flat
rate, and ease of documentary requirements . The legislators intended that with the people’s
support, all these reforms will ultimately result in lower prices for higher purchasing power,
greater government income, more job opportunities, massive infrastructure, better health and a
brighter future for each and every Filipino (Rodriguez, 2018).
In many developing countries, the immediate reason for tax reforms has been the need to
enhance revenues to meet impending fiscal crises. Bird (1993) commented, “fiscal crisis has
been proven to be the mother of tax reforms.” Such reforms, however, are often ad hoc and are
done to meet immediate exigencies of revenue. In most cases, these reforms are not in the nature
of systematic improvements to enhance the long run productivity of the tax systems (Rao, 1992).
As in the other countries like India, the systematic reforms in the tax system in the Philippines
were the product of crisis but the reforms were calibrated on the basis of detailed analysis. In the
Philippines, however, most people are clamoring for lesser excise tax for petroleum services and
sugar-sweetened beverages. The increase in petroleum prices led to an increase in the prices of
goods and services, falling on the shoulders of consumers, especially the poor. For somebody
who drives almost daily, the taxi drivers might be dealing badly with gasoline prices that spiked
to a record-breaking P60.87 in October 2018 (Gialogo, 2018). Household budgets bought fewer
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and fewer groceries. Restaurants started skimping on portion sizes or simply charged more. The
answer lies in whether or not there has indeed been an improvement in the effective purchasing
power of Filipinos. In October 2018, inflation hit 6.7 percent, moving even further away from
the Bangko Sentral ng Pilipinas’ target range of 2-4 percent for 2018 (Espenilla, 2018). Although
the causes include world oil prices or other forces, it is clear that the rise in inflation was partly
caused by TRAIN. Adding fuel to the fire, whereas the higher excise taxes targeted the rich, the
increase in prices hurt the poor the most. Hence, the wide gap between the rich and the poor
remains. Although the increase of sugar-sweetened beverages was for the better health of
Filipinos, many were not pleased about the substantial increase to its prices. Burdened by the
price shock, there was an uproar from citizens seeking the suspension of the law (Gimena, 2018).
The most popular part of the TRAIN law is the reduction of personal income tax of a
majority of individual taxpayers. Prior to the enactment of the new law, an individual employee
or self-employed taxpayer would normally have to pay income tax at the rate of 5 to 32 percent,
depending on one's bracket. Under TRAIN, an individual with a taxable income of P250,000 or
less will now be exempt from income tax. Those with a taxable income of above P250,000 will
be subject to the rate of 20 to 35 percent effective 2018, and 15 to 35 percent effective 2023.
Moreover, the deductible 13th month pay and other benefits are now higher at P90,000 compared
to P82,000 under the old law (Gialogo, 2018).
In response to this problem, the Philippine lawmakers should reevaluate the said existing
law to make sure that no one is left behind. They should find ways to mitigate the negative
effects of the TRAIN Law, especially to the poor in Region XII. For a government auditor like
me, it seems that TRAIN Law have both positive and negative impact. In the course of our work,
the economic effect looks better due to the increase in net take home pay. But due to parallel
effect in prices of goods and services, we could not almost feel its positive effects (Mendoza,
2017). Notwithstanding its drawbacks to most consumers of this region, tax reforms will
hopefully produce more benefit than harm, and that such advantages will trickle down to
ordinary people sooner. This study hopes to identify the effects of TRAIN Law to the
government workers in Region XII which are strategic people and place to give us knowledge
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about the effects of TRAIN Law. Lastly, periodic review of the effects of the law is the key,
along with efficient execution, to ensure that tax collection is indeed put to good use (Scrypnik,
2019).
Review of Related Literature
Despite the importance of tax system, there is a dearth of studies conducted to investigate
the effects of tax reforms. The amendments of the tax system and tax reforms have gained
considerable attention from researchers across the globe. Most of the countries made tax cuts and
increase due to several reasons. The recent tax reform in the Philippines led me to dig deeper to
other related studies.
In the study of M. Govinda Rao of India (1992), he analyzed the evolution of the tax
system in India since early 1990s. The paper described and assessed the introduction of new
forms of direct and indirect taxes, their revenue and equity implications and the successes
achieved in their implementation. The paper concludes that after eight years of reform improving
the tax system remains a major challenge in India.
A study about the “Tax Cuts and Jobs Act” in the United States of America by David
Floyd (1992), evaluated the tax reform which brought sweeping changes to the tax code. The
said tax reform signed by President Donald Trump on December 22, 2017 has significant and
permanent tax cuts especially to the wealthy, banks and other corporations. Financial services
companies stand to see huge gains based on the new, lower corporate rate (21 percent) as well as
more preferable tax treatment of pass-through companies.
Mangondato, Cabalida, Ibrahim, Mimbantas, Sagarino and Maneja (2019) conducted a

study about “Effects of Tax Reform for Acceleration and Inclusion Law to the Sales in Pala-o
Public Market” using survey questionnaires in collecting the data from selected respondents and
interview method to assess the insights of the respondents towards Tax Reform for Acceleration
and Inclusion (TRAIN) Law. They found out that the mostly affected by TRAIN Law were rice
retailers, grocery/sari-sari stores and meat shops. There was also a decrease of sales after the
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implementation of the said law. They also cited that most of the store owners in Pala-o Public
Market are not aware or has no knowledge of the implementation of TRAIN Law and its effects
to their sales performance. Thus, the researchers concluded that taxes levied on other goods and
services tend to increase the price of the products but not all store owners are aware about it.
Statement of the Problem
This study specifically aims to answer the following questions:
1. What are the effects of TRAIN Law to the purchasing power of government workers in
Region XII?
2. Is there an increase or decrease in the personal income tax of government workers after the
implementation of TRAIN Law? How does the change in personal income tax affect their
purchasing power?
Conceptual Framework
Figure 1: The conceptual framework of the study
Government Effects of Purchasing

Workers TRAIN Law Power
Commission on Prices of products Net change in the

Audit – XII & services and total income of the
permanent change in personal government
employees income tax workers
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This study shows the effects of Tax Reform for Acceleration and Inclusion (TRAIN) Law
to the purchasing power of government workers particularly the Commission on Audit - Region
XII. The study aims to assess if there was change in the purchasing power of government
workers before and after the implementation of the aforementioned law.
Significance of the Study
This research about the newly implemented TRAIN Law and its effects to the Purchasing
Power of Government Workers can be a good paradigm for economic and social stability in
Region XII. It would be beneficial to the following:
a. Government Workers. It will identify the factors affecting the Purchasing Power of
Government Workers through salary budgeting and expenditure planning as well as
products/services price variations due to the implementation of TRAIN Law.
b. Consumers. This research is of great help to the consumers for it provides a further
knowledge about the resurgence of the Philippine taxation system together with its effects to the
market economic traits in their daily living.
c. Providers/Businesses. This study is useful to providers/businesses because it will help them

know and understand the effects of TRAIN Law that will increase their level of awareness
towards the newly implemented taxation structure in our country.
d. Future Researchers. This study will be beneficial to the future researchers for it will
determine not only the effects of TRAIN Law but as well as its role to a wide variety of
economic activities.
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Scope and Limitation
This study only focuses on the effects of Tax Reform for Acceleration and Inclusion
(TRAIN) Law to the purchasing power of government workers in Region XII. The researcher
will conduct a survey limited only to all permanent government workers of the Commission on
Audit - Region XII. The researcher will use Descriptive and Correlational Research Design.
Definition of Terms
 Government Workers – an individual who has recognized rights and duties and works
part-time or full-time in the government under permanent status in the Commission on
Audit – Region XII.
 Purchasing Power – is expressed in terms of the amount of goods or services that one
unit of money of an individual can buy. It is important because, all else being equal,
inflation decreases the amount of goods or services you would be able to purchase. It is
decreased if the prices of goods and services increase and increase if the personal income
tax decreased.
 TRAIN Law – relatively decreases the tax on personal income, estate, and donation.
However, it also increases the tax on certain passive incomes, documents (documentary
stamp tax) as well as excise tax on petroleum products, minerals, automobiles, and
cigarettes (Gialogo, Rappler 2018).
 Tax – is a compulsory financial charge or some other type of levy imposed upon a
taxpayer (an individual or other legal entity) by a governmental organization in order to
fund various public expenditures. A failure to pay, along with evasion of or resistance
to taxation, is punishable by law (Investopedia, 2019).
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METHODOLOGY
Effects of Tax Reform for Acceleration and

Inclusion (TRAIN) Law to the Purchasing
Power of Government Workers in Region XII
Effects of TRAIN Law Locale

Prices of goods and Personal income tax Region XII
services
Participants
COA XII
Decrease? Increase?
permanent
employees
Method
Positive Negative
Purchasing Purchasing
Power Power Census
Instrument
Survey
Questionnaire
Guide
Data Analysis
Frequency
and
Percentage
Figure 2: Research Design
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This quantitative study will ascertain the effects of TRAIN Law to the purchasing power
of government workers in Region XII and the relationships of variables including the effects of
TRAIN Law on the prices of products and services (independent), changes in personal income
tax of government workers (independent), and the purchasing power of government workers
(dependent). The descriptive method will be used to describe the purchasing power of
government workers and their perception about TRAIN Law. Furthermore, the researcher will
also use survey questionnaires in collecting the data from selected respondents to assess the
insights of the respondents towards TRAIN) Law (Farooq, 2013).
Research Locale
Region XII also known as SOCCSKSARGEN is a region of the Philippines, located in

central Mindanao, and is officially designated as Region XII. The name is an acronym that
stands for the region’s four provinces and one of its cities: South Cotabato, Cotabato, Sultan
Kudarat, Sarangani and General Santos City. The region is more formally known by its older
name Central Mindanao. The regional center is Koronadal City located in the province of South
Cotabato. Cotabato City, though geographically within the boundaries of the province of
Maguindanao, itself is part of SOCCSKSARGEN, and is independent of that province.
Maguindanao province is, in fact, a part of the Autonomous Region in Muslim Mindanao
(ARMM) which has its seat in Cotabato City. SOCCSKSARGEN and the province of
Maguindanao were once part of the original Cotabato province (Villa, 2019).
The researcher chose Region XII as the setting because it is the most strategic place for
this study. One of the highest inflation rates in country has been recorded in Region XII since the
implementation of TRAIN Law and it is reasonable to make the study in Region XII. Also, the
region is one of the providers mostly of products and services in the Philippines which are
affected by TRAIN Law.
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Figure 3: Maps of Region XII

The Commission on Audit, abbreviated as COA, is an independent constitutional
commission established by the Constitution of the Philippines. It has the primary function to
examine, audit and settle all accounts and expenditures of the funds and properties of the
Philippine government. The Commission has the power, authority and duty to examine, audit and
settle all accounts pertaining to the revenue and receipts of and expenditures or uses of the funds
and properties of the Philippine government. Towards that end, it has the exclusive authority to
define the scope, techniques and methods of its auditing and examination procedures. It also may
prevent and disallow irregular, unnecessary, excessive, extravagant or unconscionable
expenditures, or uses of government funds and properties (Commission on Audit, 2019).
The Commission on Audit – Region XII is located in Koronadal City, South Cotabato
and is composed of 243 permanent employees. All of the permanent government workers
assigned in the COA XII will be our respondents. Figure 4 shows COA XII employees below:
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Development of Research Questionnaire
The purpose of the survey questionnaire is to discover the effects of Tax Reform for
Acceleration and Inclusion (TRAIN) Law to the Purchasing Power of Government Workers in
Region XII. To develop the research instrument, the researcher will follow these steps: (a)
Identify the goal of the survey questionnaire; (b) Choose what type of questions; (c) Develop
questions for the survey questionnaire (d) Ensure to protect the respondents’ privacy. The
researcher will also utilize a mixed questionnaire which is a combination of open-ended and
close-ended questions, wherein the respondents were free to express their views and opinions.
(Mangondato et. al., 2018)
Data gathering procedure
The researcher will use survey questionnaires as means of gathering the data. The survey
questionnaire will be made up of questions related to the statement of the problem. It will then be
validated and revised before the actual data gathering and distributed to the respondents for them
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to answer. The survey questionnaire will be retrieved and the result of the survey will be
tabulated. Lastly, the tabulated results will be interpreted.
The survey is created using suitable questions modified from related research and
individual questions formed by the researcher. The survey is comprises 3 main parts related to
their level awareness of TRAIN Law, change in personal income tax, and personal experience
scale. In the questionnaire, Likert scale will be used to determine if the respondent agreed or
disagreed in a statement. Also, Dichotomous questions will be asked and answered by either
“YES” or “NO”. After the questionnaire will be approved, copies will be distributed to the 243
respondents of the Commission on Audit – Region XII. The data gathered from this research
instrument will be tallied and computed for interpretation according to the frequency of items
checked by the participants.
Figure 5: The Data Gathering Procedure of the Study
With the research design applied, the method of data gathering is by conducting a survey
with the use of a questionnaire. The researcher will visit and interact with the respondents from
the Commission on Audit – Region XII to answer the administered questions on the effects of
Tax Reform for Acceleration and Inclusion (TRAIN) Law to the Purchasing Power of
Government Workers in Region XII. The researcher will gather data using the same
questionnaires to all respondents.
The Method of Data Collection that will be used by the researcher in this study is Census
Method. The Census Method is also called as a Complete Enumeration Survey Method wherein
each and every item in the universe is selected for the data collection. The universe might
constitute a particular place, a group of people or any specific locality which is the complete set
of items and of interest in any particular situation. One of the major advantages of census method
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is the accuracy as each and every unit of the population is studied before drawing any
conclusions of the research. When more and more data are collected the degree of correctness of
the information also increases. Also, the results based on this method are less biased. This
method will cover all of the population of the Commission on Audit – Region XII which is 243
employees.
Data analysis
After the data gathering, the researchers had tabulated, analyzed and interpreted the data
using the following statistical methods and techniques shown below (Sridhar, 2018):
1. Frequency
This method will be utilized to summarize the gathered data from the survey
questionnaires that the respondents answered. For the level of awareness scale, the answers of
respondents will be summarized depending on the frequency of answer “YES” or “NO” in each
item. For the change in personal income tax scale, the respondents’ answer is either increase or
decrease will be summarized and interpreted based on the frequency of score. Lastly, for the
personal experience scale, the respondents’ answers will be based the positive or negative effects
of TRAIN Law on each item and will also be summarized based on the frequency of answers.
2. Percentage
This method will be utilized to determine the average scale of the given answers or data
by the respondents. After the tabulation of summary, the result will be computed to get
percentage. The percentage score of each item for each sub-sections will be the basis of the
interpretation.
Ethical Considerations
The researcher cited the three (3) ethical considerations of this study given the constraints
in data collection (Scott, P. A.):
 Informed Consent - research participants are adequately and properly informed

regarding the nature of the research project including the approximate time requirement,
number of questions in the survey questionnaire and so forth.
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 Confidentiality - the respondents are assured that his/her participation, responses,

confidential information and so forth are being used for the purposes of this research
only.
 Respects for persons – respondents, as autonomous beings, have the right to decide
whether or not they get involved in this research.
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REFERENCES
Bird, A.D. (1993). Fiscal Crisis

Retrieved on July 11, 2019
Burns, L., University of Sydney, Australia, (2017). Tax Reforms

Retrieved on July 11, 2019 from https://ideas.repec.org/p/phs/dpaper/201610.html
Business Jargons, (2019). Census Method

Retrieved on July 11, 2019 from https://businessjargons.com/census-method.html
Commission on Audit, (2019). List of Government Agencies in the Philippines.

Retrieved on July 11, 2019 from https://coa.gov.ph/listofgovernmentag
enciesinthephilippines
Commission on Audit, (2019). COA XII

Retrieved on July 11, 2019 from https://coa.gov.ph/coa12
Creswell J.W., (2010). Research Assignments

Retrieved on July 11, 2019 from https://prudencexd.weebly.com/
Dascil, R.T., (2018). Tax Reform Acceleration and Inclusion (TRAIN) Law
Retrieved on July 11, 2019 from https://www.senate.gov.ph/trainlaw
Espenilla Jr., N.A. (2018). Inflation Report – Q3, 2018

Retrieved on July 11, 2019 from https://www.bsp.gov.ph/inflationrate2018q3
Farooq, U., (2013). Census Method of Data Collection, Advantages & Disadvantages
Retrieved on July 11, 2019 from http://www.studylecturenotes.com/social-research-
methodology/what-is-census-method-of-data-collection-advantages-disadvantages
Gialogo, E.G., (2018). Train law: What does it change?

Retrieved on July 11, 2019 from https://www.rappler.com/thought-leaders/192873-train-
tax-reform-law-what-does-it-change-explainer
Gimena, A.C.D., (2018) Revisiting TRAIN Law

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Retrieved on July 11, 2019 from https://www.bworldonline.com/revisiting-the-train-law/
Hayes, A. (2019), Purchasing Power (Economics)

Ingram, D., (2019). Factors Influencing Purchasing Power in an Economy

Retrieved on July 17, 2019 from https://smallbusiness.chron.com/factors-influencing-
purchasing-power-economy-1575.html
Likert, R., (N.D.). Likert Scale

Retrieved on July 17, 2019 from https://www.surveymonkey.com/mp/likert-scale/
Mangondato et. al., (2018). Effects of Tax Reform for Acceleration and Inclusion Law to the
Sales in Pala-o Public Market
Retrieved on July 11, 2019 from https://journamangondatol.pdf
Mendoza, R.U., (2017). Spatial Disparities and Poverty: The Case of Three Provinces in the
Philippines
Retrieved on July 11, 2019 from https://www.researchgate.net/publication/311785893_
Spatial_Disparities_and_Poverty_The_Case_of_Three_Provinces_in_the_Philippines
Nillos, T.E., (2014). Map of Region XII

Retrieved on July 11, 2019 from https://www.google.com.ph/search?q=region+xii&
source=lnms&tbm=isch&sa=X&ved=0ahUKEwjAlquSnbvjAhWlIqYKHWWbAX4Q_A
UIEigC&biw=1536&bih=754&dpr=1.25#imgrc=ez2dDW1TFLme2M:
Rao, G.M. (2000), Tax reform in India: Achievements and Challenges

Reside Jr., R.E., (2018). Towards Rational Fiscal Incentives (Good Investments or Wasted
Gifts?)
Retrieved on July 12, 2019 from https://ideas.repec.org/p/phs/dpaper/201610.html
Rodriguez, T.A., (2018). Tax Changes You Need to Know

Retrieved on July 11, 2019 from www.ntrc.gov.ph/images/Publications/train/tax-
changes-you-need-to-know.pdf
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Scott, P. A., (2013). Ethical Considerations

Retrieved on July 11, 2019 from https://pdfs.semanticscholar.org/4a92/c888451db89d408
9a8adba23b5420e935499.pdf
Scrypnik, M., (2019). The Concept Of Tax Reform In Ukraine

Retrieved on July 11, 2019 from https://www.researchgate.net/publication/332239097_
THE_CONCEPT_OF_TAX_REFORM_IN_UKRAINE
Sridhar, J., (2018). What Is Data Analysis and Why Is It Important?

Retrieved on July 11, 2019 from https://www.makeuseof.com/tag/what-is-data-analysis/
Tan, H.D., (2017). Vietnam announces tax reform proposals

Retrieved on July 11, 2019 from https://www.ey.com/gl/en/services/tax/international-
tax/alert--vietnam-announces-tax-reform-proposals
Villar, C.T., (2018). The Impact of Tax Reform for Acceleration and Inclusion (TRAIN) on
Philippine Agriculture
Retrieved on July 12, 2019 from https://www.senate.gov.ph/theimpactoftaxreformforacce

lerationandinclusion(train)onphilippineagriculture
Villa, T.F., (2019). SOCKSARGEN Region

Retrieved on July 12, 2019 from https://philippinescities.com/region-12-soccsksargen/
Xinhua, K.C. (2012). China taxation reforms to boost industrial upgrading

Retrieved on July 12, 2019 from http://www.chinadaily.com.cn/business/2012-
10/22/content_15835540.htm
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Appendix A:
RESEARCH SURVEY QUESTIONNAIRE
Dear Respondents,
Good Day!
I am a student of Notre Dame of Marbel University – Graduate School and currently enrolled
under Master in Public Administration program. I am presently working on my research study
titled “Effects of Tax Reform for Acceleration and Inclusion (TRAIN) Law to the
Purchasing Power of Government Workers in Region XII”. In line with this, I humbly
request you to answer this survey questionnaire that will enable me to gather significant
information in fulfilling my study. Respondents should be permanent employees of the
Commission on Audit – Region XII and must be in government service for at least 1 year.
It will be rest assured that whatever information gathered in this survey will be used only for
thesis purposes and be treated with uttermost confidentiality.
Your cooperation will be highly appreciated.
Very truly yours,
Kim Anthony N. Acosta
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Part I – Personal Background
Name (optional): .
Part II – Survey Statement
LEVEL OF AWARENESS SCALE

Instruction: Please CHECK either “YES” or “NO” for each of the item that reflects your
perception or feelings towards the questions given below.
ITEM YES NO
1. I am aware of the Republic Act No. 10963 or Tax Reform for
Acceleration and Inclusion (TRAIN) Law.
2. I have enough knowledge about tax systems and laws in the Philippines.
3. I am aware of the effects of TRAIN Law to my personal income tax and
to market prices.
4. I am aware of that the taxes levied on me help fund the government’s
“Build, Build, Build” program.
5. I am aware of that the purpose of TRAIN Law is to enhanced education,
health and social services.
6. Prices of goods and services became higher after the implementation of
TRAIN Law.
CHANGE IN PERSONAL INCOME TAX SCALE

Instruction: Please CHECK below the effect of TRAIN Law to your personal income tax
and salary.
ITEM INCREASE DECREASE
1. What is the effect of TRAIN Law to your Monthly
Income Tax after TRAIN Law Implementation (2018)?
2. How does TRAIN Law affect your salary?
Instruction: Please identify if the following items below have Positive (P) or Negative
(N) effect on your purchasing power or net income. Put P if positive and N negative.
PERSONAL EXPERIENCE SCALE
ITEM Effect
1. Reduction of personal income tax
2. Reduction of donor’s and estate taxes to a 6% flat rate
3. Increase on the price of sugar-sweetened beverages (soft drinks and etc.)
4. Increase on the price of Petroleum Products (Fuel, gasoline & etc.)
5. Increase of public utility vehicles fares (jeeps, tricycles, taxis and etc.)
6. Increase on the price of automobiles (car, jeeps and trucks)
7. Increase on the price of tobaccos (cigarettes, vapes, and etc.)
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Appendix B:
INFORMED CONSENT
Name of Researcher: Kim Anthony N. Acosta
Research Title: Effects of Tax Reform for Acceleration and Inclusion

(TRAIN) Law to the Purchasing Power of Government
Workers in Region XII
Institution Name: Notre Dame of Marbel University

Graduate School
Koronadal City, South Cotabato
Contact Number: 09177047542
PART I. INFORMATION SHEET
Introduction
I, KIM ANTHONY N. ACOSTA, Master in Public Administration student at Notre

Dame of Marbel University, am doing a study about TRAIN Law.
I am giving out information sheets and I hereby invite you to participate in the study. You
don’t need to decide immediately whether to participate or not. You may still want to ask
questions regarding the study. I am most willing to give my time in order to explain this to you.
Objectives of the Study
The research aims at gathering information about effects of TRAIN Law implementation
and respondents’ purchasing power.
Method of Study
This study uses the survey questionnaire method.
JMJ Marist Brothers
Graduate School
Key Informants
The key informants of the study are the government workers in Region XII particularly
from the Commission on Audit – XII.
Ethics Review
The researcher will ask the permission of his mentor prior to the conduct of the study.
Consent Form
The consent form must be explained by the researcher to the key informants.
Signatory
The signature of the key informant must appear in the form.
Witness to the consent
There is no need of a witness to authenticate the key informant’s signature.
Proxy Signatory
There is no need of a proxy signatory.
Process of Obtaining Consent Form
Before obtaining the signature, the contents of the Consent Form shall have been
explained to the key informants for 15-20 minutes or as necessary.
JMJ Marist Brothers
Graduate School
Time and Place in Obtaining the Consent
The consent may be obtained at any time most convenient to the key informant.
Making known the objectives, risks, benefits and process of the study
Inform the participants of the objectives, risks, benefits and process of the study. The key
informant may withdraw from answering the questionnaire in the process. There is no risk
involved.
Voluntary Participation
Participation in the study is voluntary. I am inviting you to participate in this study so that
I can gather as much TRAIN Law and its effects to the respondents. You may choose not to
participate or may withdraw anytime should you wish to.
Process of Gathering Information and Protocol
The key informants will be given a questionnaire where they will be asked information
about themselves, about the effects of TRAIN Law to their purchasing power or financial
capacity.
Time Frame
Fifteen (15) minutes is allotted in answering the questionnaire.
Side Effects
None
JMJ Marist Brothers
Graduate School
Risks
None
Benefits
Participating in the study would help identify the effects of TRAIN to the purchasing
power or financial capacity of respondents.
Reimbursements
There is neither incentive given to the participant nor any reimbursement of whatever
cost incurred.
Confidentiality
All entries to the questionnaire shall be kept confidential. Each key informant will be
assigned a number code instead of divulging his/her real identity. The researcher is bound to
keep all information confidential.
Sharing the Results
The results of the study will be validated with the key informants prior to its final release
or submission. Key informants’ identity will be strictly withheld. The study will ultimately be
published in order to help interested persons or entities.
Researcher’s Responsibility over Adverse Events
No adverse events are expected to happen in relation to the survey.
JMJ Marist Brothers
Graduate School
Extent of Use of Study Data
At the moment, there is no intention to use the data other than in the objectives of the
protocol.
Authorship and Contributorship
The principal author of the study is KIM ANTHONY N. ACOSTA. There are no co-
authors and no contributors.
It is clear to the author that the university will be given a number of copies upon
completion of the study.
Conflicts of Interest
The author does not see any conflict of interest.
Publications
This study may be submitted to local and international publishing houses. Participants
should be informed of this possibility before they are made to sign the consent forms.
Funds
The researcher and/or funding agency, if any, will finance the entire study.
Copy of the Informed Consent Form
Key informants will be given a duplicate copy of the consent form. Additional copies will
be made available.
JMJ Marist Brothers
Graduate School
Right to Refuse or Withdraw
You have the right to refuse or withdraw participation at any stage of the study.
Questions Regarding the Study
Should there be any question regarding the study, the key informants are encouraged to
air this out before or during the filling up of the questionnaire.
Who to contact
For any question or further information about the study, you may contact the researcher
in this number 09177047542.
PART II: CERTIFICATE OF CONSENT
I have read, have been informed and understood all the pertinent information regarding the
study. I have been given a chance to ask questions and have been answered accordingly to my
full satisfaction. I willfully consent to participate in this study. I also understand that I may
withdraw my participation at anytime during the duration of the study if I wish to, and that I
will not be held liable nor will I suffer from such action.
Name of Participant:_________________
Date:________________________
Name of Person who took the Consent form__________________
_______________________________
Researcher’s Name & Signature
JMJ Marist Brothers
Graduate School
Appendix C:
CERTIFICATION OF THESIS EDITING
I have submitted this paper for language editing. All remaining errors are my
own.
Signed this 24th day of July 2019 at Notre Dame of Marbel University, City
of Koronadal, South Cotabato.
Submitted by:
KIM ANTHONY N. ACOSTA
Attested by:
KING ARMAN A. CALINGASAN, MAEd

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JMJ Marist Brothers

NOTRE DAME OF MARBEL UNIVERSITY

In Partial Fulfillment of the Requirements in PA 250

ACOSTA, Kim Anthony N.

Background of the Study………………………………………………………………….3

Review of Related Literature……………………………………………………………...6

Statement of the Problem………………………………………………………………….7

Significance of the Study………………………………………………………………….8

Scope and Limitation……………………………………………………………………...9

Development of Research Questionnaire………………………………………………...13

Data gathering procedure………………………………………………………………...13

Appendix A: Research Survey Questionnaire…………………………………………...20

Appendix B: Informed Consent………………………………………………………….22

Appendix C: Certificate of Thesis Editing……………………………………………….28

Review of Related Literature

Mangondato, Cabalida, Ibrahim, Mimbantas, Sagarino and Maneja (2019) conducted a

Statement of the Problem

This study specifically aims to answer the following questions:

Figure 1: The conceptual framework of the study

Government Effects of Purchasing

Commission on Prices of products Net change in the

Significance of the Study

c. Providers/Businesses. This study is useful to providers/businesses because it will help them

Scope and Limitation

Effects of Tax Reform for Acceleration and

Effects of TRAIN Law Locale

Figure 2: Research Design

Region XII also known as SOCCSKSARGEN is a region of the Philippines, located in

Figure 3: Maps of Region XII

Development of Research Questionnaire

Data gathering procedure

Figure 5: The Data Gathering Procedure of the Study

 Informed Consent - research participants are adequately and properly informed

 Confidentiality - the respondents are assured that his/her participation, responses,

Bird, A.D. (1993). Fiscal Crisis

Burns, L., University of Sydney, Australia, (2017). Tax Reforms

Business Jargons, (2019). Census Method

Commission on Audit, (2019). List of Government Agencies in the Philippines.

Commission on Audit, (2019). COA XII

Creswell J.W., (2010). Research Assignments

Espenilla Jr., N.A. (2018). Inflation Report – Q3, 2018

Gialogo, E.G., (2018). Train law: What does it change?

Gimena, A.C.D., (2018) Revisiting TRAIN Law

Retrieved on July 11, 2019 from https://www.bworldonline.com/revisiting-the-train-law/

Hayes, A. (2019), Purchasing Power (Economics)

Ingram, D., (2019). Factors Influencing Purchasing Power in an Economy

Likert, R., (N.D.). Likert Scale

Nillos, T.E., (2014). Map of Region XII

Rao, G.M. (2000), Tax reform in India: Achievements and Challenges

Rodriguez, T.A., (2018). Tax Changes You Need to Know

Scott, P. A., (2013). Ethical Considerations

Scrypnik, M., (2019). The Concept Of Tax Reform In Ukraine

Sridhar, J., (2018). What Is Data Analysis and Why Is It Important?

Tan, H.D., (2017). Vietnam announces tax reform proposals

Retrieved on July 12, 2019 from https://www.senate.gov.ph/theimpactoftaxreformforacce

Villa, T.F., (2019). SOCKSARGEN Region

Xinhua, K.C. (2012). China taxation reforms to boost industrial upgrading

RESEARCH SURVEY QUESTIONNAIRE

Your cooperation will be highly appreciated.

Very truly yours,

Kim Anthony N. Acosta

Part I – Personal Background

Part II – Survey Statement