TRAIN basically stands for Tax Reform for Acceleration and Inclusion (Republic Act No. 10963)
As the first package of the comprehensive tax reform program (CTRP) created under President Rodrigo Duterte’s administration, this bill envisions a simpler, efficient and fair tax system in the Philippines that lessens the burden for the poor and the middle class.
In order to achieve this goal, areas such as personal income of taxpayers, oil products, cooperatives, automobile and beverages are affected.
Revenues will be placed in funds reserved for the purpose of community and economic development.
Why is tax reform necessary?
TRAIN, effective starting January 1, 2018, seeks to correct a number of deficiencies in the tax system to make it simpler, fairer, and more efficient. It also includes mitigating measures that are designed to redistribute some of the gains to the poor.
Basically, this will update the current tax system to redistribute the burden of tax and to spread gains to the Filipino people.
What will this new tax reform fund?
TRAIN envisions to achieve a more conducive learning environment by implementing the ideal teacher-to-student ration and classroom-to-student ration. With the new tax reform, the government will be able to fund investments in education and achieve such goal.
2. Healthcare Services
The government, given the new tax reform, will now be able to invest more in the Philippines’ healthcare by providing Filipinos with better services and facilities.
3. Infrastructure Programs
Revenues raised by the new tax reform (TRAIN) will be utilized to fund the Department of Public Works and Highways (DPWH) programs for infrastructure. These consist of flood control projects, expressways, and major highways or thoroughfares.
TRAIN aims to promote better living for Filipinos by being able to provide the needed additional revenues that would be used to fund the Philippines’ investment needs.