President Rodrigo Duterte is flanked by lawmakers as he leads the Ceremonial Signing of the 2018 General Appropriations Act and Tax Reform Acceleration and Inclusion, or TRAIN, at Malacañan Palace on Dec. 19, 2017. Presidential photo/Rey Baniquet

Explainer: How Duterte's new tax law or TRAIN can affect you
Ian Nicolas Cigaral (philstar.com) - December 20, 2017 - 9:48am

MANILA, Philippines (Update 3, First published on Dec. 20) — President Rodrigo Duterte on Tuesday, December 19, signed into law the first package of the much-awaited tax reform program—the central piece of the government’s plan to raise the bulk of needed funds for the Duterte administration's ambitious infrastructure drive.

Known as the Tax Reform for Acceleration and Inclusion law, the tax program overhauls the country’s 20-year-old tax regime in a bid to make the tax system fairer and simpler. The fresh law takes effect 15 days after it is published in the Official Gazette or publications of general circulation.

Under the TRAIN, personal income tax rates will be adjusted to shift the burden off lower-income segments toward the “ultra-rich.”

Meanwhile, projected revenues to be foregone from lower personal income tax will be offset by higher excise levies on petroleum and automobiles, among others.

Under its P8.44-trillion 2017-2022 “Build, Build, Build” program, the government aims to jack up its spending on infrastructure alone to P1.899 trillion, equivalent to 7.45 percent of gross domestic product, by the time Duterte ends his term in 2022.

However, the estimated tax take from the new tax law is less than the Department of Finance had hoped to raise, with TRAIN expected to generate $1.8 billion in revenues in its first year.

Despite the maverick leader’s huge popularity and Congress being dominated by his allies, Duterte’s TRAIN had also encountered some resistance, with some lawmakers criticizing certain “anti-poor” provisions of the bill.

Amid mixed reactions over the revamp of the country’s tax system, what does the new law mean to ordinary Filipinos now that TRAIN has been given a green light to leave the station?

Here are the items covered by the new tax law:

Income | Estate | Donations | Coal | Mining | Tobacco | Beverage | Cars | Cosmetic | VAT

COSMETIC TAX INCOME TAX SUGAR TAX TAX REFORM TRAIN VALUE ADDED TAX
Philstar
Facebook
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with
Read and share the latest news
whenever and wherever you are.
Top Stories
Features the most relevant stories,
exclusive content, analyses and special reports.
As It Happens
Get bite-sized highlights and up-to-date
information as the news breaks.
Latest
View the most recent
stories of the day.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
How to follow As It Happens stories
STEP 1
Click the story in the As it Happens section.
How to follow As It Happens stories
STEP 2
Click "Follow Story" for updates on the news.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Author
STEP 1
Click on the author's name in the article.
How to follow Author
STEP 2
Once you click on the author's name, you will be
brought to the Authors page. Click "Follow Author"
to stay updated on the author's works
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Tags
STEP 1
Click on a tag in the article.
How to follow Tags
STEP 2
When you click on a tag, it will take you to the
dedicated tag page where you'll see the article
viewed, along with other stories with that tag.

Click the "follow tag" button to stay updated on
the topic.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.