Tax Reform for Acceleration and Inclusion Law

rdf:langString Tax Reform for Acceleration and Inclusion Law

rdf:langString An Act amending Sections 4, 5, 6, 24, 25, 27, 31, 32, 33, 34, 51, 52, 56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101, 106, 107, 108, 109, 110, 112, 114, 116, 127, 128, 129, 145, 148, 149, 151, 155, 171, 174, 175, 177, 178, 179, 180, 181, 182, 183, 186, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 232, 236, 237, 249, 254, 264, 269, and 288; creating new Sections 51-A, 148-A, 150-A, 150-B, 237-A, 264-A, 264-B, and 265-A; and repealing Sections 35, 62, and 89; all under Republic Act No. 8424, otherwise known as the National Internal Revenue Code of 1997, as amended, and for other purposes

rdf:langString Tax Reform for Acceleration and Inclusion Law

rdf:langString in force

rdf:langString The Tax Reform for Acceleration and Inclusion Law (TRAIN Law), officially designated 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. The TRAIN Act is the first of four packages of tax reforms to the National Internal Revenue Code of 1997, or the Tax Code, as amended. This package introduced changes in personal income tax (PIT), estate tax, donor's tax, value added tax (VAT), documentary stamp tax (DST) and the excise tax of tobacco products, petroleum products, mineral products, automobiles, sweetened beverages, and cosmetic procedures. The prominent features of the tax reform are lower personal income tax and higher consumption tax. Individual taxpayers with taxable income not exceeding ₱250,000 annually are exempted from income tax. The exemption for minimum wage earners is retained in the revised tax system. Tax rates for individual taxpayers still follow the progressive tax system with the maximum rate of 35%, and minimum rates of 20% (taxable years 2018 to 2022) and 15% (2023 onwards). On the other hand, consumption taxes, in the form of higher excise tax on tobacco products, petroleum products, automobiles, tobacco, and additional excise tax on sweetened beverages and non-essential, invasive cosmetic procedures were introduced. It also expanded the VAT base by repealing exemption provisions in numerous special laws. The TRAIN Act is aimed to generate revenue to achieve the 2022 and 2040 vision of the Duterte administration, namely, to eradicate extreme poverty, to create inclusive institutions that will offer equal opportunities to all, and to achieve higher income country status. It is also aimed at making the tax system simpler, fairer and more efficient. Regardless, contentions about the passing of this law has been present since the beginning and the subsequent reception by the people since its ratification has been controversial. In the first quarter of 2018, both positive and negative outcomes have been observed. The economy saw an increase in tax revenues, government expenditure and an incremental growth in GDP. On the other hand, unprecedented inflation rates that exceeded projected calculations, has been the cause for much uproar and objections. There have been petitions to suspend and amend the law, so as to safeguard particular sectors from soaring prices.