Professional Documents
Culture Documents
Researchers:
Padriganda, Rhea
Revillo, Jamie
ABM 12-3
March 2018
Page | 1
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Chapter I
Introduction
operate and with which the State discharges its functions for the welfare of its
constituents (2014). A new tax reform, namely Tax Reform for Acceleration and
Inclusion (TRAIN) was introduce and implemented in the Philippines last December
2017. These measures lower personal income taxes while increasing the tax paid on cars,
As the Tax Reform for Acceleration and Inclusion (Train) Law has been imposed
by President Rodrigo, consumers and businessmen are having a problem since one of the
effects of train law is to raise the price of sweet-beverages. For instance, a one liter of
Coca-Cola is now 43.00 from 31.00 (Rappler.com). It is reported that many businessmen
are still adjusting for the changes, somewhat vendors forced to buy fewer supplies and
also S&R give their consumer a prior notice about discontinuing the 'unlimited soda' due
to the price hike. Lots of study indicated that sugar-sweetened beverages trigger this
health problem since it contains ingredients that have high metabolic effects. On the other
hand, the taxation has been proposed, to reduce the intake of these beverages and to make
conduct this study is to know the perception of the business owners in PUP Lagoon and
Page | 2
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
how they will take the excise in sugar-sweetened beverages. The researchers also want to
test the business owners' knowledge about TRAIN Law in order to spread the right facts
Lagoon Sta. Mesa, Manila manage the changes in price brought by the newly-imposed
tax.
protecting the health of the Filipinos”, a remark by the World Health Organization
(WHO). Philippines is among the first Asian countries to implement such law, but before
it was implement in the Philippines, taxes on SSB have been carry out in other countries
Denmark is one of the oldest countries who impose taxes on sweet beverages that was
dated back in 1930’s. However it was no longer valid in 2014 due to its economy making
it less strong and active. In 2012 France collects money by charging tax on sodas in
response to obesity. January 2014, Mexico imposes tax on sweet beverages and achieved
12% dropped in purchases at the end of the year. Also in 2014, Berkley, California
Philippines for domestic sale or consumption. This includes the new tax reform of SSB's
in the TRAIN law adding P6 tax per liter. Sweet Beverages is a common drink for the
Page | 3
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Filipinos, however it is said that regular consumption of SSB's can cause negative effect
Mexico is one of the countries that impose the tax on sugary drinks and it was
totally effective. The tax has been criticized and under attack by the citizens since it was
product like water. In fact, in December 2014, sales had decreased by 17% for the sugary
drinks while sales of bottled water increased by 4%. And in 2015, it was reported that the
estimated revenue from the 10% tax on sugary drinks reached 15.4—16.0 billion pesos.
Researchers estimate that Mexico's 10% tax on soda and other sugary drinks will prevent
about 189,300 new cases of Type 2 diabetes, 20,400 strokes and heart attacks, and 18,900
Page | 4
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Conceptual Framework
Increase in Change of
product suppliers
Increase in the prices
prices1:
Figure ofResearch
raw Paradigm
materials.
TAX REFOFM
FOR ACCELE-
RATION
The circle Decrease
ANDfigure contains in
the main Profit
subject of the &
research,
Quantity/
Tax Quality
Reform for
certain product Capital of
INCLUSION
(TRAIN LAW)
Acceleration stocks.LAW). This law tends to create a taxraw
and Inclusion (TRAIN system that
materials
impose to lower take home taxes of every worker while increasing the paid taxes on
Promoting
goods and
consumable products. The three New
boxes show the effect of TRAIN LAWAdaptation,
in business
services. Adjustments
marketing
strategy and
industry primarily in P.U.P lagoon and the businesspersons’ cooperative responses
Acceptance
The study aims to know the perception of the Polytechnic University of the
Philippines Lagoon Business Persons to the Tax Reformation for Acceleration and
Page | 5
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
2.1. Knowledge – The respondent’s overall knowledge about the TRAIN Bill
2.4. Legal Strategy – The respondents’ additional (If any) requirements in the
legal matter
2.5. What are the respondents’ perceived benefits in light of the application of
the law?
Campus-Sta. Mesa, Manila. The research is during the first semester of academic year
Page | 6
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
2017-2018. The respondents of the study are 20 selected business persons will be
interviewed. The study aims to identify the perception of the respondents in lagoon of
The study is descriptive in nature. This research will use homogenous sampling in
which all the respondents will belong to similar course and the main instrument use in
This study only covers the perceptions and benefits of the business owners to the
said TRAIN law. Other categories related to the study will not be discussed in this study.
Polytechnic University of the Philippines' Lagoon regarding the newly implemented law,
namely Tax Reform for Acceleration and Inclusion. We also want to know how these
enterprises will react or adjust to the changes. This study may help the following:
handle their business well and how can they cope up with changes due to the newly
released law.
Consumers. This study may increase the knowledge and awareness of the
consumers regarding the topic. It also helps every consumer to have a healthy lifestyle
Page | 7
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Teachers. This study may help the teachers to increase their knowledge and
Future Researchers. The findings of the study will serve as a reference material
and a guide for future researchers who wish to conduct the same study. They can also
Definition of Terms
The following terms used in this study are conceptually and operationally defined.
activity of providing goods and services involving financial and commercial and
industrial aspects.
Business people refer to people working in a business. The business people are
Consumer refers to an individual who buys products or services for personal use
something. It also refers to the state of being or process of becoming aware of something
Sugar-sweetened beverages (SSB) are drinks with added sugar including: non-
diet soft drinks/sodas, flavoured juice drinks, sports drinks, sweetened tea, coffee drinks,
Page | 8
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Tax refers to the mandatory and obligatory money collection of the government
who is earning a high income and for the cost of goods or services that someone has
bought.
Tax Reform for Acceleration and Inclusion (TRAIN LAW) refers to the newly
reformed comprehension of law in terms of tax in some goods and services. This bill
envisions creating a tax system that is simpler, fairer, and more efficient, characterized by
low rates and a broad base that promotes investment, job creation and poverty reduction.
Chapter 2
Page | 9
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Local Literature
proposed tax on sugar sweetened beverages (SSB) is seen to divide the market into
unbalanced segments as it favours businesses catering to the higher income sector. The
SSB tax proposes a P10 per liter tax on beverages using high-fructose corn syrup, P5 per
liter on drinks using sugar, and P3 per liter on drinks using non-caloric sweeteners. The
tax will cover beverages such as energy drinks, powdered juice drinks and soft drinks.
This tax claims to be a health measure aimed at curbing rising incidences of diabetes and
"The proposed SSB tax is anti-poor as it target staples that are not just
patronized by lower-income households, but also those that are the source of livelihood
of sari-sari stores." said the chairman of Federation of Philippine Industries, Jesus Lim
Arranza. This article posted inphilstar.com business section will help the researchers
provide some information to the lagoon business owners on tracking down their
The proposed Philippine SSB excise tax amounting to 10 pesos per liter is
disproportionately high compared those in other countries with similar taxes. Considering
the Mexican tax table as a best practice in sugar taxation, it only affects the prices of
SSBs by a maximum of 10%. However the prices of Filipino’s basic drinks increase from
35% (C2 Green Tea Litro) to a high of 111% (Nestea Lemon 25g). In Philippine pesos,
the SSB tax in Mexico is only 2.50 per liter compared to the proposed local tax of 10
Page | 10
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
exempts from paying taxes the first two hundred fifty thousand pesos (P250,000.00)
annual taxable income, meaning those earning twenty one thousand pesos (P21,000.00) a
month would no longer need to pay income taxes. It also raises the tax exemption for
13th month pay and other bonuses to ninety thousand pesos (P90,000.00). However, to
compensate for loss of revenue from income taxes, Filipinos will need to pay excise tax
mining, and coal as for the formal sectors. Tanjusay said it is looking at filing wage
petitions in a bid to counter the effects of the tax reform law. He said they are eyeing at
the possibility of simultaneously filing wage petitions in all seventeen (17) regional wage
boards once they have enough basis to ask for wage adjustments. He said that they will
be making a decision as soon as they see substantial increases in the prices of basic
commodities such as rice, fish, and vegetables; as well as in the cost of services such as
platform that will serve as a 24/7 online helpdesk for taxpayers, specifically for those
who are self-employed and professionals to enjoy the ease of complying with the new tax
law, rules, and regulations." Said Mon Abrea, the adviser of Bureau of Internal Revenue
how individual will be helped to understand more about TRAIN Law. This article will
help the researchers to know where to find information about the implemented law.
Page | 11
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
An article posted by Sunstar Manila said that TRAIN Law has adverse
Congress of the Philippines (ALU-TUCP) vendors, fisher folks, farmers, public utility
vehicle, and pedicab drivers would face harder circumstances now that the law is
effective. The ALU-TUCP also said that informal workers may be forced to do illegal
activities just to have enough means to live. Those who are in the poverty line can resort
to illegal means such as criminality, violence, and illegal drugs in order to survive the
Local Study
Economic Impact Study of the SSB Bill on the Beverage Industry in the Philippines”
aside from being higher tax than other countries and burdening lower income consumers,
the proposal will hurt the sugar and coffee farmers, and sari-sari store owners.
SSB is a popular and common energy source for snacks among the
Filipino's (Adaik&Popkin, 2005). Because of its budget friendly prices and availability in
the market many people tend to buy these products. In the study of Philippine Journal
drinking SSB's while 16.33% of female school-aged children and 26.67% in adolescence
much higher than male. These data show how many people who drinks SSB's, small
business owners can be the most affected since the additional of P6 or P10 in SSB's price
Page | 12
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
tax reformation stated that majority of the respondents did not favor the following: the
expansion of the value-added tax (VAT) coverage (83.6%); raising of taxes on petroleum
products (87.7%); charging of Php10 per liter tax on sugary drinks and increasing
annually thereafter (82.2%); imposition of 12% tax on rented dwelling with monthly rate
of Php10,000 and below (77.5%); and imposition of 12% tax on remittance fees, such as
those from overseas Filipino workers (77%). On a nationwide scale, the article by
Ibon.com will help the researchers in creating hypotheses and expectations on what may
Foreign Literature
In recent time the world economy has developed tremendously and this
has been linked with activities of Small and Medium Scale Enterprises (SMEs),
especially in developing countries. A Study carried out by the Federal Office of Statistics
shows that in Nigeria, Small and Medium Scale Enterprises make up 97% of the
situation where the same profit or income respectively which is liable for tax in Nigeria
has been subjected to tax by another tax authority in Nigeria or another country outside
Nigeria (Osita, 2004). In such situations relief is usually granted to that tax payer for the
earlier tax paid or to which he may be liable. Specific arrangements are made with a view
circumstance.
Page | 13
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
with a study of West African Ceramics Limited, Ajaokuta, Kogi State. From all
literatures reviewed, the researchers deduced that the development and operation of
SMEs has economic impact on the nation. The researchers established relationships
between SMEs’ sizes and their ability to pay taxes, multiple taxations and SMEs survival.
The researchers therefore conclude that multiple taxations affect the survival and growth
of SMEs in Nigeria.
person perceives the world and approaches the life problems differently-
Whatever we see or feel is not necessarily the same as it really is. It is because
what we hear is not what is really said, but what we perceive as being said. When
we buy something, it is not because it is the best, but because we take it to be the
best. Thus, it is because of perception, we can find out why one individual finds a
job satisfying while another one may not be satisfied with it.
2. If people behave on the basis of their perception, we can predict their behavior in
environment. One person may be viewing the facts in one way which may be
Page | 14
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
3. With the help of perception, the needs of various people can be determined,
4. Perception is very important for the manager who wants to avoid making errors
when dealing with people and events in the work setting. This problem is made
more complicated by the fact that different people perceive the same situation
differently. In order to deal with the subordinates effectively, the managers must
understand their perception, that is, how they perceive the different situations. People’s
behavior is based on their perceptions of what reality is, not on reality itself. The world as
it is perceived is the world that is important for understanding the human behavior.
of something through the senses. In other words it's the ability to see, hear, understand or
and understood.
It's the way people perceive things that defines their character and attitude.
Kindness, hate, love and all other emotions originate from one's perceptions about
something.
It’s just perception which defines what happiness means to a person. For some
Human perception towards god is the main reason why are having so many
religions today. It not just shows that perceptions are varied but also perceptions
Perceptions help in shaping up a person's goal and his/her outlook on life. It's the
Foreign Study
The government implemented TRAIN Law as for the people of its nation.
The said law wants to benefit their people by protecting their health. An eight-year cohort
study among 91,249 women showed that the women who consumed one or more serving
of sugar-sweetened beverages daily had almost double the risk of diabetes compared to
the women consuming less than one serving per month. Half of the increased risk was
attributed to the greater body weight. The women consuming one or more per day also
suffered a 23% increased risk of coronary heart disease. Another study compared women
showed a gain of 8kg in bodyweight for the women increasing their intake, whereas the
women decreasing their intake gained 2,8kg of bodyweight (Brownell et al., 2009).
2014 Mexico instituted a nationwide tax on sugar - sweetened beverages (SSB) in order
to prevent the increasing rate of diabetes because of the high-level consumption of SSB.
In the study according to the data of Mexico Government and Market Research survey
Page | 16
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
there are two main scenarios, 10% reduction in SSB consumption (corresponding to the
reduction observed after the tax implementation) and a 20% consumption (increase in
taxation levels). Given by the data, Mexican replaces calories from SSB with calories
from other sources. The study of Sanchez-Romero et al. will help the researchers to know
the perception of business enterprise regarding the TRAIN Law knowing that most of the
taxation on sales of sugary soft drinks. These studies typically have estimated the price
elasticity of demand, which is a measure of the likely change in demand for—or sales of
—a product that would result from a change in price. In an analysis based on surveys of
households, Finkelstein and colleagues estimated that a tax on sugary soda would reduce
demand, with a price elasticity of demand of -0.7, meaning that for every 10% tax, sales
would fall by 7% (Finkelstein, E.A. et al., 2010). The article by Finkelstein will be a
helping hand of the researchers to understand more the topic and also to carry out an
empirical study about how the price elasticity of demand can be one of the effects
restaurants be out of business (Schneider, 2017) In Chicago, Illinois, the new sugar tax
affects the small businesses; restaurant owner said that the bill of their water may rise as
Swenson (1994) on her thesis "The impact of U.S. tax reform on foreign
direct investment in the United States" showed that her study empirically examines how
Page | 17
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
taxes shape foreign direct investment, and found that increased taxes spur inward foreign
investment. The finding conforms to theories that recognize that foreign investor
response is critically shaped by the tax provisions faced by the foreign investor in his
home country, and by the effects of tax reform on pre-tax asset returns. She also
demonstrated that average tax rates may better proxy tax effects than do effective tax
rates. Her findings were more robust than previous results since she utilized the entire
1980s tax history, consider a fuller set of industry distinctions, and estimate the tax
performance in the euro area: A simulation-based analysis using the New Area-Wide
Model" shows that lowering tax distortions to levels prevailing in the United States
would result in an increase in hours worked and output by more than 10%. At the same
time, tax reductions would have positive spillovers to the euro area's trade partners,
bolstering the case for tax reforms from a global perspective. Finally, they illustrated that,
between Tax burden and Entrepreneurial development in Nigeria and most entrepreneurs
are unaware of various tax incentives as provided in the industrial development income
tax relief act 2004 as amended, therefore, she recommends that instead of finding ways to
reduce the present tax burden, government should explore ways of ameliorating the
Page | 18
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Synthesis
Although the TRAIN Law exempts the workers earning twenty one
thousand (P21,000.00) and down a month, the higher excise tax imposed on sweetened
beverage, petroleum, automobile, and mining products compensated for the loss of
revenue from income tax. Jesus Lim, the chairman of Federation of Philippine Industries
said that SSB tax is anti-poor as it targets staples that are the source of livelihood of sari-
sari stores and the products patronized by lower-income households. An article posted by
Sunstar Manila stated that the TRAIN Law has adverse effect on informal workers.
Informal workers might be forced to do illegal activities in order to survive the high cost
of living brought by the TRAIN Law. In a study conducted by Philippine Journal Science
(2005), the data obtained shows that small business owners is the most affected because
of the higher additional price in SSB products that can be hard to sell. Okoye (2017)
stated that there is a significant negative relationship between Tax Burden and
entrepreneurs; the increase in tax might trigger them to close their stores if high taxes
continued to be a burden. The TRAIN Law is said to be implemented for the people of its
nation. The said law does want to benefit people by protecting their health. The high
consumption of sugar-sweetened beverages is one of the reasons why women have higher
risk of obesity (Brownell et al, 2009). According to Schneider (2017) independent and
family owned business and restaurants might cause them to be out of business. In general,
Page | 19
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
these studies and literatures will benefit the researchers to track down the perception of
Chapter III
Research Methodology
Page | 20
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
conducting the study. It incorporated the research design, population sample, research
instruments, validation procedure, data gathering procedure and statistical treatment. This
chapter shows how the researcher will collect the data necessary to the study and how
Research Design
The research design refers to the narrative research that has been chosen to
integrate the different components of the study in a comprehensible and logical way.
Narrative research is a term that subsumes a group of approaches that in turn rely on the
typically focus on the lives of individuals as told through their own stories. Narrative
methods are appropriate in this study because the researchers are investigating real life
problem that the lagoon business owners are already facing since the implementation of
the TRAIN Law. This study will explain the preferred answer of the Lagoon Business
Owners in Polytechnic University of the Philippines, Sta. Mesa with regards their
perception on the new tax reform regarding the Sugar-Sweetened Beverage (SSB) Tax in
the Philippines. The researchers will use two methods, depending on the participants'
Page | 21
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Research Locale
in Sta. Mesa, Manila City, Philippines. It was founded on October 19, 1904 as the Manila
Business School, under the Division of City Schools – Manila as the city's business
school. It is also the flagship campus and the seat of administration of the PUP System,
the country's largest university in terms of geographical reach and student population.
Sample Respondents
The respondents of this study are the Lagoon Business Owners from
purposive sampling survey, a total of 15 business persons from different stalls in the PUP
Lagoon. These business owners will partake the said survey. If given a chance, this
population will give answers to the questions or problems of the study. The respondents
will be interviewed or answer the survey questionnaires during their free time to avoid
Research Instrument
study. A mediated interview will be used if the respondent does not want to answer the
survey questionnaire in light circumstances that may hinder the respondent in answering
such questionnaire. The researchers will use a structured list of predetermined open-
ended questions which contains the business profile of the respondent corresponding with
Page | 22
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
six questions. The interview guide consists of items that will determine the perception of
reformation of the Philippine tax system. Hence, it will answer the aims of the study.
The researchers will have a brief introduction about the significance of the
study through personal interaction. The survey or interview will start by asking
respondents’ business profile. It is then follow by a structured interview wherein there are
sets of relevant questions raised by the researchers. The data gathered will be carefully
The researchers will read and review the answers of the respondents and
search for dominant, relevant and best answers and highlight those words. It is then
similar response. After reviewing the data gathered from the respondents, the researchers
will categorize this gathered information into six classes corresponding to answers in
each of the question. The researchers will make the information concise and specific to
Chapter 4
Page | 23
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
In this chapter, the results of the data analysis are presented. The data were
collected and then processed in the response to the problem posed in chapter one.
Participants in this study share their different points of views on the implemented
law and how they are able to cope up with a good strategy in running their businesses.
The questions were focused on the perception of Business Enterprises at the lagoon of the
Polytechnic University of the Philippines (PUP). The researchers want to know the
participants demographic profile, their thoughts about the proposed TRAIN Law; how
will they be able to perceive and adjust in terms of: (1) Financial Budgeting Strategy, (2)
Marketing Strategy and (4) Legal Strategy; and the benefits that they think they’ll get in
Table 1 show that there were 6 or 40% male respondents and also 9 or 60%
female respondents.
Page | 24
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
4 27% 4 27%
P30,000- P60,000
0 0% 1 1%
P70,000- P100,000
1 7% 0 0%
P110,00- above
8 53% 5 33%
None (not indicated)
15 100% 15 100%
Total
Most of the respondents which is 53% didn’tindicate their capital. But 27% are
putting capital ranging P30, 000 to P60, 000. For the profit, 33% of them are estimated
incomes are P5, 000 to P20, 000 same percentages to those who did not indicate their
profits.
Law that is implemented. The rest of the 100 % respondents said it is a tax that is been
added to the goods and products. The effect of the said tax is to its consumers, a burden
to carry for all its nation and small enterprises. TRAIN Law for them is an increased net
Page | 25
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Budgeting Strategy
According to them, as the raw materials are increasing in price, the product
will increase too. They also consider decreasing their budgets, some increase capital and
changing their suppliers with affordable one to remain stable their prices. Some strategy
depends on the numbers of the students. Taking a partnership will be a help. But
sometimes they are “abunado pa minsan”. And for the respondents who really don’t
know what TRAIN Law is which 5 out of 15, they don’t have any actions to do so.
S7: "Pag tumataas ang raw products/ materials,.. tataas din ang presyo ng
paninda"
(As the prices of raw products or materials are increasing, the prices of final
Page | 26
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Marketing Strategy
In terms of marketing strategy, 80% of them take some actions. They maintain
providing good food in affordable price without sacrificing the quality of the product like
what they always did when they started. Other stalls offers promos like buy one take one,
discounts for bulk orders, adding combos in value meals and some are forced or they
have no choice to add price on it but in those stalls that doesn’t know or don’t have any
idea about TRAIN Law still did the price hike because of the raw materials that they
used. The rest 20 % they have nothing to do after the implemented law.
Stall 6,7, 21
S21: “adding our value meal/ combo meals. Yes we put a price hike”
6 out of 15 respondents say that they applied new legal requirements or papers in
the process of put a price hike for the new implemented TRAIN Law. The rest of the
CMSE: “.. Requirements just like business permit and health certificate.”
Page | 27
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
TRAIN Law can be both beneficial and harmful to the consumers and sellers
(stall 21). The government implemented it because they needed funds to provide its
citizen good services (stall 5) but this is a burden to the small business owners and
S7: “Ang alam natin sa TRAIN Law, may pagtaas sa mga pangunahing bilihin sa
gas/ diesel. Sana lang magamit sa maayos at mabuting bagay ang idadagdag na tax ng
gobyerno.”
(We just know about TRAIN Law is that there is an increase in the prices of the
Paraiso: “Hirap kami, samin mas okay pa yung khit na may tax...”
Virgin Stall: “Para sa amin magreresulta ang TRAIN Law sa pagtaas ng mga
bilhin. Bilang isang nagtitinda, tumataas ang cost of production naming dahil mahal na
ang mga bilihin. Mas malaking capital dapat ang nilalabas at mapipilitan kaming
Page | 28
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
(For us, it will result to increase in price of the products. As a seller, our costs of
Chapter 5
of the study.
Page | 29
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Summary of Findings
enterprise on the implementations of TRAIN Law in PUP. The results of the survey
showed that most of them did not know much about the said law. On the other hand, a
few said that it is a tax that has been to the goods and products.
As for budgeting strategy, they considered to decrease their budget while some
increase their capital and even change their suppliers just to cope up with the law. Despite
of this, their budget is sometimes not enough so they have to use their own money.
price without sacrificing the quality of the product like what they always did when they
started. TRAIN Law can be both beneficial and harmful to the consumers and sellers. The
government implemented it because they needed funds to provide its citizen good
services but this is a burden to the small business owners and minimum-waged
employees.
Conclusion
Based on the data collected and interpreted by the researchers amongst Lagoon
enough knowledge about the TRAIN Law notwithstanding the fact that they are mostly
affected by the newly imposed law but some of the respondents have quite an insight
Page | 30
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
about its implications; albeit stating "increase in prices of goods and products." About the
Budgeting Strategy, some already increase the prices of their products; others change
their suppliers and find new ones that have more affordable prices. Some have not
developed new budgeting strategy since the implementation because they are still
adjusting and measuring the odds. In terms of Marketing Strategy, most business
enterprises sell quality food at a reasonable price. Some included promos like buy one,
take one and combo meals. Others had no choice but to put hike on prices of their
The researchers conclude that the implementation of the TRAIN Law is both
beneficial and burden. Beneficial in a way that it will help the government sustains better
services for the general public. Burden, not only for the business owners but also for the
consumers, because it will lead to less number of people buying their products therefore
less profit and money to take home for their families. As to the perception of the business
enterprises regarding the TRAIN Law, mixed reactions were derived on the subject
Recommendations
To Future Researchers
The issue about the TRAIN LAW is a hot topic to discuss because of its
surprising and hasty implementation to the public. This research aimed to know
the perceptions of the business enterprises in PUP Lagoon in light of the law’s
Page | 31
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
instigation. Thus, this study suggests that future researchers can broaden the scope
Also, the researchers recommend conducting a study that inhibit the effects and
The implemented tax reform law not just affects the business owners but
also the consumers. The researchers recommend having at least notice such as
posters located in the store of the business owners so that the consumer will be
aware on the tax law if there is a change in the prices of their preferred products.
law, the researchers suggest conducting more seminars discussing the features and
effect of the tax reform law on business industry primarily on the small enterprise
owners.
Page | 32