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Activity 10 History
Activity 10 History
ACTIVITY/EVALUATION:
The Philippines implemented the TRAIN Law in 2017 to reshape taxation. It reduced
personal income tax, aiming to financially empower individuals. This positively
impacted citizens by lowering income deductions, potentially boosting spending and
economic activity.
However, the law also increased excise taxes on goods like fuel and sugary drinks,
directly affecting consumer prices. For instance, higher fuel taxes led to increased
transportation costs, and elevated taxes on sugary drinks raised their prices,
contributing to a higher cost of living.
Analysing the TRAIN Law reveals a divide. While reduced personal income tax is
seen as positive for financial empowerment, increased taxes on essential goods
cause inflationary pressures, particularly affecting those with lower incomes.
From my point of view, the TRAIN Law emphasises the difficulty of resolving tax
reforms. While the intention to financially empower citizens is admirable, the
unanticipated impact on consumer costs should not be neglected. Future tax
reforms should take a comprehensive strategy to ensure financial relief without
adversely influencing the cost of living. This balance is critical for really improving
citizens' financial well-being.