TAX REFORM PACKAGE
‘BIGGEST CHRISTMAS
AND NEW YEAR’S GIFT’
- DOF CHIEF
SUBMITTED BY:
SHANE NICOLE C. DE LA CRUZ
BSTM 1.1A
SUBMITTED TO:
MR. ANTONIO ARIAS
INTRODUCTION ABOUT THE ISSUE
The Tax Reform for Acceleration and Inclusion (TRAIN) Act, officially cited as
Republic Act No. 10963, is the initial package of the Comprehensive Tax Reform
Program (CTRP) signed into law by President Rodrigo Duterte on December 19,
2017. President Duterte leads the signing of the 2018 General Appropriations Act
(GAA) amounting to P3.767 trillion and the Tax Reform for Acceleration and
Inclusion (TRAIN) at the Rizal Hall of Malacañang Palace on Tuesday.
President Duterte’s signing into law of the landmark Tax Reform for Acceleration
and Inclusion Act (TRAIN) is the goverment’s “ Biggest Christmas and New
Year’s gift” to the Filipino people as it will usher in “real positive change” for the
nation beginning in 2018, Accordin to Finance Secretary Carlos Dominguez III.
Senator Loren Legarda said the P3.767-trillion national budget for 2018 is the
highest allocation by any administration, Finance Secretary Carlos Dominguez III
described the tax reform package as the government’s “biggest Christmas and
New Year’s gift” to the Filipino people as it will usher in “real positive change” for
the nation beginning in 2018.
Gabriela Reps. Emmi De Jesus and Arlene Brosas, however, disagreed with
Dominguez and Legarda. They said the TRAIN will directly trigger negative
economic impact on over six million Filipino women. Those to be affected face
higher prices of basic commodities but will not benefit from the income tax gains
that the TRAIN brings, they added.
The Issue in itself
A. Brief History of the Issue
Legarda said that in the 2018 GAA, social services remain to have the biggest
share of the budget pie, with 38.7 percent; followed by economic services, 30.5
percent; general public services, 16.4 percent; debt burden, 9.8 percent; and
defense allocation, 4.6 percent.
The 10 agencies with the highest budgetary allocations are, Education angencies
inclusive of the Department of Education, the Commission on Higher Education
(CHED) and state universities and colleges (SUCs), P664.8 Billion. Department
of Public Works and Highways, P637.8 Billion. Department of Health including
budgetary support for government corporations, P171.09 Billion. Department of
the Interior and Local Government, P170.7 billion.Department of National
Defense (DND), P149.69 billion.Department of Social Welfare and Development
(DSWD), P141.8 billion. Department of Agriculture (DA) and its attached
agencies, P103.07 billion.Department of Transportation (DOTr) and BSGC,
P70.9 billion. Department of Finance (DOF) and BSGC, P48.07 billion.
Department of Environment and Natural Resources (DENR), P24.9 billion.
B. Laws Enacted
President Duterte signed into law, is a “sign of maturity” for the Philippine
economy that is now ready to meet the challenges. The TRAIN will provide hefty
income tax cuts majority of Filipino taxpayers while raising additional fund to help
and suppory the government.
YOUR STAND/REACTION/SOLUTION ABOUT THE ISSUE
Positive Stand
The TRAIN aims to make the Philippine Tax System simpler, fairer and more
efficient to promote investment, create jobs and reduce poverty. It also aims to
raise revenues that will fund Presindent’s Build, build, Build Project that will
sustain high and inclusive growth of our country. I am glad to know that the poor
and middle classes are going to benefit the most. I agree that the most priority is
the Education but I suggesr that they must also prioritize the DOH so it can help
those patient that cant afford to pay bills for their health.
Negative Stand
On the other side of my stand, there’s no need for a tax policy reform because
the problem came from lies in our agencies. he problem is not only in the way the
tax administration is being run, the problem is inherent to the law itself.
Final Stand and Justification
Honestly at first, I am not that concern towards our country’s tax system because
I don’t feel its direct impact on my daily life. But after studying, I realized that
everything that I have or even do is being taxed.
