PRESIDENT Rodrigo Duterte finally signed into law on Tuesday the first package of his government’s proposed tax reform measures under the Tax Reform for Acceleration and Inclusion (Train) plan. Overall, it is a step toward good fiscal policy, despite some last-minute criticisms before the signing of the bill. Critics, however, should keep in mind the original goal of Train Package 1 – to relieve the working class of some of the highest personal income tax rates in the region. Train Package 1, therefore, effectively shifts taxation to consumption. The reduction in personal income taxes not only corrects a structural imbalance, it also gives individuals and families more freedom in terms of spending the fruits of their hard-earned labor.

Source: Manila Times December 19, 2017 16:18 UTC