Tax Reform for Acceleration and Inclusion (TRAIN) LAW

President Rodrigo Duterte signed Republic No. 10963, Package 1 of the

Comprehensive Tax Reform Program (CTRP), commonly known as the Tax Reform for
Acceleration and Infusion (TRAIN), into law on December 19, 2017. It made various
alterations in personal income tax, estate tax, value-added tax and, documentary stamp tax.
There is also the excise tax of petroleum products, mineral products, tobacco products,
sweetened beverages, cosmetic procedures, and automobiles. In his 3rd State of the Nation
Address (SONA), he emphasizes that TRAIN’s implementation “cannot and should not”
stop. While TRAIN mandates wealthier taxpayers to contribute more, I strongly oppose
TRAIN law, as higher taxes dragged more Filipinos into poverty.
A tax is a governmental organization’s mandatory financial charge or other sorts of
levy imposed on an individual or legal entity to fund government spending and other public
expenditures. However, I believe that the TRAIN law only worsens inequality. Some of the
alterations favor the rich, frequently at the expense of the poor. For instance, the excise tax
on automobiles, the rich are on the advantage as lower-cost cars will be taxed at lower
rates. Even if the value of these cars drops, the poor and middle classes, in my opinion, will
still be unable to purchase one because they have more necessary needs to consider.
Furthermore, due to the excise tax on petroleum goods, there is inflation in commodities,
making it more expensive for the poor. Moreover, high excise taxes on coal, oil, and
petroleum goods aggravated the problems of millions of low-income individuals. Thus, I
can say that the law only worsens poverty in the country. Furthermore, I think that the tax
on Sugar-Sweetened Beverages is unnecessary because not everyone in the Philippines has
a sweet tooth. It merely adds to the cost of the people. Besides, there are many other ways
to lower the risk of diabetes and obesity. If the government is determined to make the
Philippines healthier, it should focus on promoting an overall healthy lifestyle rather than
focusing on specific illnesses. On the other hand, I understand that the government needs
funding for their programs; the question is, does it all go to public services? Corruption is
rampant in the Philippines. In fact, according to the 2019 Corruption Perceptions Index, the
country is ranked 113th least corrupt out of 180 nations. It is a 14-notch drop from the
previous year's ranking. Hence, in my opinion, we need a serious implementation of anti-
corruption laws to improve the country’s tax collection and to handle economic issues
better.
The government requires long-term funding for social programs and public
investments. Thus, taxation is a crucial aspect between citizens and the economy as it is
utilized for public goods and services. The TRAIN law is one of the initiatives of the
government to promote economic growth and development. I, however, am strongly
opposed to it as it has become a burden for the Filipino people. They were pulled farther
into poverty as a result of it. While it is an anti-poor act, it primarily affects the poor and
middle classes. If only we were in better hands, we might be able to maintain the country's
growth without having to levy more taxes.