The Tax Reform for Acceleration and Inclusion (TRAIN) Law shifts the tax burden away from income and into consumption. The law reduces the income tax burden of the earning Filipinos, recalibrating the brackets with the intention of increasing the disposable income after taxes. While the law targets specific goods, such as sweetened beverages and vehicles, it also has increased the taxes for fuel. Key to the success of this component of the TRAIN Law is the effectiveness and efficacy of its implementation. The TRAIN law is banking on the economic growth that will be generated by the infrastructures to be built and whose funds will be drawn from the tax revenues, as well as from foreign development assistance whose release is premised on the approval of the TRAIN law.

Source: Manila Times January 29, 2018 16:30 UTC