Effects of Train Law in the Essential Needs of the Families of Grade 12 HUMSS Students at Bestlink College of the Philippines

Vol.3, No.1D

Abstract

Tax Reform for Acceleration and Inclusion is the first package of the comprehensive tax reform program that President Duterte‘s administration envisioned. It seeks to correct several deficiencies in the tax system to make it simpler, fairer, and more efficient. It also includes mitigating measures designed to redistribute some gains to the underprivileged. 

According to Ranada (2017), President Rodrigo Roa Duterte signed Republic Act No.10963, or Tax Reform for Acceleration and Inclusion Law, on December 19, 2017. It was immediately taken into effect last January 01, 2018. It contains amendments to several provisions of the National Internal Revenue Code of 1997 on several tax provisions such as individual income taxation, passive income for both individuals and corporations, estate tax, donor‘s tax, value-added tax, excise tax, and documentary stamp tax. 

With the implementation of the TRAIN Law, Filipinos- ordinary citizens, employees, employers, the self-employed, the rich, and the poor were all affected. Gialago (2018), as a tax lawyer, noticed that there are many news reports on the changes. There are much more significant changes under the TRAIN Law, which is not being reported. TRAIN relatively decreases the tax on personal income, estate, and donation. However, it also increases the tax on certain passive income documents and an excise tax on petroleum products, minerals, automobiles, and cigarettes. The TRAIN Law also imposes new taxes as the excise tax on sweetened beverages and non-essential services (invasive cosmetic procedures). It removes the tax exemption of Lotto and other PCSO winnings amounting to more than P10,000. Nonetheless, the new law also contains praiseworthy provisions that simplify tax compliance. 

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