President Rodrigo R.

Duterte aims to make the Philippine Tax System simpler, fairer and
more efficient to promote investments, create jobs and to reduce poverty. So, back in
December 19, 2017, the Tax Reform for Acceleration and Inclusion (TRAIN) was signed into law
as Republic Act (RA) 10963. With the implementation of the said law, it raised different issues
and criticisms. A lot are telling that the said law will only result to a negative effect in the
economy of the Philippines. They said that upon the implementation of the law the poor will be
greatly affected because prices of products and other services will increase. Household bills will
also be affected and there will be higher imposition of excise tax on cars, tobacco, sugar-
sweetened beverages, and fuel which will affect the different members of the economy. Higher
fuel prices will have a trickle down effect on public transport service providers, therefore there
will be higher fares. But then if we look to a different and brighter side just like what our
President sees.
This TRAIN Law is actually a great help to the Filipino people and to the economy of the
Philippines. You see, if we look further and understand what the law really is for, we will realize
a lot of advantages it can do. The first one would be higher take home pay. The key component
of this tax reform is to unburden the employees, unlike the previous tax law, this law covers not
only the minimum wage earners but also those who earn annually 250,000 and below or 21,000
monthly. The law will also raise significant revenue to fund the President’s priority and social
infrastructure programs to reduce poverty (Build, Build, Build projects). Because the Philippines
suffered from unemployment and poverty the Build, Build, Build projects seeks to accelerate
infrastructure spending and develop industries that will yield robust growth, create jobs and
improve the lives of Filipinos. Thus, raising more funds for the Build, Build, Build will not only
produce a positive effect to our economy but also help more unemployed Filipinos as well. A lot
may critique this Law the positive effects it gives to our economy is inevitable. This law will offer
more job opportunities, better infrastructure that will lower the transport and distribution costs
and goods, and improve services. Up to 30% of the incremental revenues from the TRAIN will
help fund a targeted cash transfer program for the county’s poorest 10 million households to
aid the bottom 50% of the population in coping with the initial effects of the Tax Reform Law on
the prices of basic necessities. A lot may not realize these things now but in the coming future I
know that they will observe the difference in the economic state of our country from then and
now. Thus, I can tell that the TRAIN Law is very helpful to the economy of the Philippines. #