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Impact

The TRAIN Law, effective January 1, 2018, aimed to improve the tax system and increase government funds for essential services while lowering income taxes for workers. However, it led to rising prices of basic goods and fuel, exacerbating financial struggles for low-income families and ultimately increasing poverty levels. Studies indicate that instead of alleviating hardships, the law has worsened the economic situation for many Filipinos.

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Tricia Mae Gravador
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12 views1 page

Impact

The TRAIN Law, effective January 1, 2018, aimed to improve the tax system and increase government funds for essential services while lowering income taxes for workers. However, it led to rising prices of basic goods and fuel, exacerbating financial struggles for low-income families and ultimately increasing poverty levels. Studies indicate that instead of alleviating hardships, the law has worsened the economic situation for many Filipinos.

Uploaded by

Tricia Mae Gravador
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ACTIVITY 9

The Impact of Republic Act No. 10963 (TRAIN Law) to Filipino people.

The Tax Reform for Acceleration and Inclusion (TRAIN) Law took effect on January 1,
2018, with the goal of improving the tax system, making it fairer for low-income earners,
and increasing government funds for infrastructure, healthcare, and social programs. One
of its main changes was reducing income taxes, allowing many workers to receive higher
salaries.

However, while the law lowered taxes, it also caused prices of basic goods like rice,
vegetables, and fish to rise, making it more difficult for low-income families to afford
their daily needs. Fuel prices also increased, which affected public transportation drivers
by reducing their earnings and caused fare hikes for commuters. These rising costs made
it harder for many Filipinos to manage their expenses, canceling out the benefits of lower
taxes.

As a result, instead of improving the lives of the poor, the TRAIN Law made their
financial struggles worse. Studies show that it increased poverty instead of reducing it,
creating more challenges for low-income families and affecting their well-being.

Reference:
Compio, M. C., Cruz, S. G. B., Gaurano, M. T., & Cabauatan, R. R. (2022). The study
on how Tax Reform for Acceleration and Inclusion Law (TRAIN) affects low-income
class families in Manila. International Journal of Social and Management Studies, 3(5),
Article 168. https://doi.org/10.5555/ijosmas.v3i5.168

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