Name: Pegarro, Justin L Score:

Section: BS CS 1A (ALU)

Personal insight 1- Final term

The Tax Reform for Acceleration and Inclusion (TRAIN) Act, officially known as
Republic Act No. 10963, is the first installment of President Rodrigo Duterte's Comprehensive
Tax Reform Program (CTRP). It was signed into law on December 19, 2017 by President Rodrigo
Duterte. The TRAIN Act is the first of four tax reform packages to the 1997 National Internal
Revenue Code, commonly referred to as the Tax Code. This package amended the personal income
tax (PIT), the estate tax, the donor's tax, the value added tax (VAT), the documentary stamp tax
(DST), and the excise tax on tobacco, fuel, and other products. The TRAIN Act is intended to
produce revenue to fund the Duterte administration's 2022 and 2040 visions, which include the
eradication of extreme poverty, the establishment of inclusive institutions that provide equal
opportunities for everyone, and the attainment of higher income nation status. Additionally, it aims
to make the tax system simpler, more equitable, and more efficient.

Bear in mind that TRAIN revenues will be used to pay critical services such as free
education, raises in teacher wages, and critical infrastructure improvements under the 'Build,
Build, Build' program. The incremental revenue generated by the Train will help fund the
government's P8.4 trillion infrastructure modernization program, which will serve as the catalyst
for sustaining the economy's high growth trajectory and transforming it into a high-middle income
economy by 2022, while reducing poverty to 14%. One significant effect of infrastructure
development is the redistribution of wealth to rural areas, as farmers and other rural workers will
be able to transport their commodities more cheaply and expand their market access. As a result
of the lower transportation and distribution costs, residents of metropolitan areas will benefit from
lower prices for basic items.

Finally, the economic activity generated by the Train and the infrastructure expansion will
reduce expenses for everyone and generate additional revenue in other areas. That is why we
require this tax reform legislation.