“The TRAIN lowers the Personal Income Tax (PIT)for all taxpayers except the rich”. Effectively, personal taxes will be reduced for 99% of the Philippine tax payers. Additionally, minimum-wage earners are still exempted from PIT.
What is the advantages of train law?
Specifically, TRAIN corrects the longstanding inequity of the tax system by reducing income taxes for 99 percent of income taxpayers, thereby giving them much-needed relief after 20 years of non-adjustment.
What are the good points of the train law?
The fundamental objective of Train law is to reduce poverty 21.6% to 14% by 2020, and completely eradicate poverty from the nation by 2040. The reform states that everyone would be provided with equal opportunities”.
What are the benefits of Tax Reform in the Philippines?
Increased revenues: The adoption of true market-based values for taxation purposes will increase government revenues without adopting new tax measures. It will lead to an increase in the revenue generating capacity of real property through the RPT, NG Real Property Transfer Taxes*, and other related taxes.
How will the poor benefit from train law?
The Tax Reform for Acceleration and Inclusion Act (TRAIN) will set the staging ground to rescue 21 million Filipinos from poverty in the long run because additional revenues from this law will allow government to spend more on health, education and other social services that will provide opportunities for prosperity to …
How does the train law affect the Filipino consumers?
The Tax Reform for Acceleration and Inclusion Act (TRAIN) has increased the incomes or spending power of Filipino consumers to more than makeup for the moderate rise in inflation that happens in fast-growing economies, according to the Department of Finance (DOF).
What is the power of Bir?
– The Bureau of Internal Revenue shall be under the supervision and control of the Department of Finance and its powers and duties shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith, …
What did the train law achieve?
TRAIN 1 reduced personal income taxes after 20 long years of non-adjustment of tax rates; but it imposed higher excise taxes on automobiles, petroleum products, tobacco, sugar-sweetened beverages and other non-essential goods.
What is the purpose of tax reform?
Tax reform is generally undertaken to improve the efficiency of tax administration and to maximise the economic and social benefits that can be achieved through the tax system.
How important is your tax to the Philippine government?
Taxes help the government fund their projects for economic development. It’s also the lifeblood of outstanding government employees, like teachers. Contributing your share of the pie greatly helps in the development of the Philippines as a whole.