TRAIN LAW: To Commence an Impediment Not a Development

By: Vea Haren B. Mayuga

9 – St. Patrick
Everything in this world has its own value from a depth up to greater summits that make
up this world – They are all privileges that are financially equated and are priced in accordance
to their value. Somehow, we are bordered into a non-ideal view of equity as we are all humans,
we trace a similar origin that only emerged to disparate paths, that some were lucky enough to
have grown opulent and some have encountered financial deprivation but only a few can devour
through the great privileges the world has. This partially delineates the bottom-line we have
tracked on that huge privileges are outlined within the ranges of the affluent individuals and
apparently, indigent ones seek a limited opportunity to be endowed with a portion of such. How
can they not, if even in the needs they should naturally attain, they are still troubled into great
unease as they seek difficulty in acquiring money? And this might be more exacerbated by the
train law which will consequently uproot price hikes and inflation rates that might go beyond
what the poor can afford.

TRAIN law which stands for Tax Reform for Acceleration and Inclusion has been a
central concern nationwide that uprooted various stands regarding the intent of the imposed law.
Train Law which is also signed as Republic Act No. 10963 by President Rodrigo Duterte, aims
to abolish personal income tax and raise the consumption tax of beverages such as foods and
drinks. And basically, from this consumption tax shall project funds and revenues be taken from.

Taxation is of no doubt an inherent source of budget for governmental projects and other
programs that shape up the economic stature of the Philippines which evenly takes into account
the known “Build, Build, Build Project” by the Duterte Administration. Based on a study,
poverty and unemployment are primarily drawn from unimproved infrastructures. Through the
taxes, such programs will be fundamentally enhanced to initiate a robust growth in the economic
stature of the Philippines. But why does it have to be raised from the consumption taxes if they
can actually be effectuated through the use of the personal income taxes just as the conventional
tax system has been in our country?

Henceforth, train law has been a subject of debate for all as its advantages were believed
to be mostly experienced by the well-to-do individuals yet settles a weight that burden the hands
of the poor. The effect does not equally contain the degree of satisfaction in the eyes of people.
With this, I am firmly convicted that the Train Law has its economic hazards that can impart a
massive slowdown in the development of the country. See the reality, Philippines is comprised
more of poor over the wealthy. Prior to train law, more considerations were given to them as
fewer taxes have to be paid and prices were much stable compared to now. As when the Train
law was signed, the taxes that were abolished were less compared to the prices that increased,
therefore, money before and now sets great discrepancy as huge deduction in monthly salary is
also seen. The increase of prices in some basic commodities has elevated greatly that though the
taxes were eradicated, the money they get isn’t enough to pay for them. The inflation rate has
increased, from 3.18% in 2017, it raised to 4.17% by the current year. Alcoholic beverages and
tobacco (21.5%) and electricity, gas and other fuels (11.5%) are estimated to jump the highest
among major commodities. “Higher price of rice and key food items due to weather disturbances
and supply disruptions, increase in gasoline and LPG prices, and slight upward adjustment in
electricity rates in Meralco-serviced areas contributed to upward price pressures in August,” the
Banko Sentral ng Pilipinas said.

If we try to view this, though how much taxes were reduced from our earnings, when we
sum up all these expenses especially for the basic commodities, not to mention the electricity
bills, majority of the Filipinos will suffer. Fortunate are those who have higher incomes and can
still afford these things but most Filipinos will be cornered down as less and less will be left for
them.

Government reiterates the fact that it has been of way in augmenting the salary of most
workers as tax exemption was imposed to workers of low-wage to high-wage earners.
Technically, only few laborers benefitted from this but in totality, enormous part of the country
experienced an abhorrent effect sparing less money for savings and huge for expenses for basic
necessities. It was hard for them to cope up with the inflation rates that though their taxes were
diminished, basic commodities are still far-attainable for the total earning they get. Take also into
consideration, us, students, who do not earn money for ourselves and merely rely on parents for
allowance. When we spend, it isn’t our own pocket which is hurt, but of our parents’. Or in a
broader sense, since we do not have our personal source of income, we just spend money as
needed and due to the effect of the higher inflation rate, our consumption becomes bigger, and so
were left with no better option especially that as one ages, the greater needs are to be satisfied.

Some studies implicates the instrumental help of the law in catering the growing
hardships of Filipinos in terms of job opportunities as more infrastructures to be built (coming
from the consumption tax) the more laborers are to be hired. But realistically, the more hardship
is shouldered onto Fiipinos as atop those opportunities, they have a family to feed, children to
educate that still the salary wouldn’t be enough to cope with the higher market prices that can
limit the education of children. With lack of education, they can’t find better job opportunities in
the years ahead, and same scenario goes – lack of income to cater needs. It is just like a domino
effect that at a first glance, it appears enticing but digging into a deeper dimension, the loathsome
outcome is what we shall confront.

Philippines is a small country and is part of the 3 rd world country and gov’t have to step
into great endeavors to push through a higher degree of social mobility and so it probes through
undertakings that will urgently bring an abrupt change for economic furtherance. And one of the
major steps ventured was the Train law legalized – through the taxations integrated by the
government. But shall I say, the train law can be likened to a roller coaster that has been turned
upside down or wheel that circulates up and down as the taxation system is just the same even if
we sigh through a different angle. Before, the personal income tax was high and prices were
stable. The government gets its revenues from the PIT. Now, the PIT was gone but the prices are
unstable and precariously sit, as they still hold tendencies of increasing for consumption taxes.
The government gets revenues from the consumption taxes. It goes to show that the tax system
was just varied in terms of the government source of revenues but still the same in terms of
“counterbalancing” each other that with the increase of one, it’ll trigger a response of a decrease
in the other. Or with the decrease of one, the other shall increase and so even if the income tax
was obliterated, the increase will be set on the CT to make up for the loss of the other, as both
cannot remain high nor low since it’ll be either a nuisance to the consumers or the economy
respectively. See how it cycles out but still reaches the same peek?

“Expectation vs. Reality”, as the millennial saying goes. Some laws are ideally created
out of the expectation that has been foreseen by the government to help foster an equal system
that is a just to everyone’s eye. But in reality, these laws are written testimonies to mark an
eminent feature of an administration. Expectation is, the poor shall be uplifted and given
attention when in fact, there are only a few people who benefit, who are exhilaratingly appeased,
and who are contained with robust satisfaction at the expense of a Juan Dela Cruz, a normally
living Filipino. This sums up my standpoint as how I eye the Train law – a Predicament, an
Impediment, NOT a Development.