What is the purpose of train law in the Philippines?

The Law took effect on January 1, 2018. The TRAIN aims to make the Philippine Tax System simpler, fairer, and more efficient to promote investments, create jobs and reduce poverty.

Are Train laws implemented?

Reactions. The TRAIN Law finally took effect in January 2018. Since its implementation, there have been numerous individuals for and against the new tax reform, such as Budget Secretary Benjamin Diokno who has expressed support for the law as the additional revenues provide funds for government initiatives.

Is train law beneficial or not?

TRAIN corrects and simplifies the current tax system, as well as make it fairer by lowering the PIT, reducing VAT exemptions, and adjusting excise tax rates on petroleum products and automobiles.

What can you say about the train law in the Philippines?

The Tax Reform for Acceleration and Inclusion (TRAIN) Law or Republic Act No 10963 took effect on January 1, 2018. One would be the increase in excise taxes on cigarettes, petroleum and automobiles, among others. An excise tax is also imposed on sweetened beverages and a few other products and services.

What are the benefits of train law to employed individuals?

Specifically, TRAIN corrects the longstanding inequity of the tax system by reducing income taxes for 99 percent of income taxpayers, thereby giving them much-needed relief after 20 years of non-adjustment.

What other commodities are affected by the train law?

TRAIN 1 reduced personal income taxes after 20 long years of non-adjustment of tax rates; but it imposed higher excise taxes on automobiles, petroleum products, tobacco, sugar-sweetened beverages and other non-essential goods.

What is the importance of having tax reform in the Philippines?

Tax reform will allow the government to invest in the Filipino people through infrastructure, education, health, housing, and social protection. Fears of spikes in inflation are unfounded.

What is the benefit of train law?

The TRAIN, which took effect last Jan. 1, will exempt compensation earners and self-employed individuals with an annual taxable income of P250,000 and below or those earning at least P21,000 a month from paying the personal income tax. The 13th-month pay and other bonuses amounting to P90,000 are also tax-exempt.

What is the positive effect of train law?

Train law also provides uniform tax rates for the estate tax and donor’s tax, which made it easier to compute the tax dues. Also, some threshold increases, which is fewer taxes to be paid. One of these revisions of thresholds is personal income tax-exempt from 10,000 t0 250, 000.

Who benefits from train law?

What is the impact of train law in the Philippines?

The entire TRAIN law, which besides fuel also slapped higher or new excise on sugar sweetened beverages, vehicles and cosmetic procedures, among other goods and services, was estimated to have had hiked poverty incidence by 1.72 ppt.

What are the significant provisions of the train law?

Under TRAIN, those with annual taxable income below PHP 250,000 are now exempt from paying personal income tax, while the rest of taxpayers, except the richest, will see lower tax rates ranging from 15 percent to 30 percent by 2023.