Implications of TRAIN Law to Juan Dela Cruz
- Zhaine Min
- Mar 30, 2021
- 4 min read

Taxes are seen as a burden for the people, especially for those who are tightening their budget from hard-earned incomes to barely survive. Numerous tax reforms have been made in an attempt to have a fair and progressive tax system, and one of those is the Tax Reform for Acceleration and Inclusion (TRAIN) Law. It took effect three years ago, but it’s still relevant to have an in-depth understanding of the topic and how it affects the life of Juan Dela Cruz—the common Filipino.
OBSERVATION
Taxation is something that has existed since the beginning of time. Even before the arrival of foreign colonizers, our ancestors practiced the collection of taxes or tributes in exchange for protection from the datus. Today, we pay taxes as a mandatory contribution in exchange for the government to do its job, which is to improve the general welfare of every citizen. However, collecting taxes from the people is not as simple as that. Aside from the lack of transparency and accountability from the government and corruption, there are other things that we also need to deeply look upon.
Having a just tax system does not end with merely proposing tax reforms. For TRAIN Law, it lowers personal income taxes while introducing excise taxes on sugar-sweetened beverages and petroleum products. This is to reduce income inequality while simultaneously shrinking down sugar consumption which promotes a healthy lifestyle. Its objective may seem praiseworthy at first glance, but the reality says otherwise as it became law and took effect. According to an analysis of Punongbayan (2019) on how it affects the consumers, the TRAIN Law is worsening poverty and income inequality mainly due to the imposition of taxes on basic commodities. The implications of TRAIN Law, as to how we see and experience it in the real world, are contradicting its proposed objectives.
INSIGHT
When tackling this tax reform, we need to balance everything out and weigh its pros and cons. We simply cannot consider it as a black and white issue. Because of the complex concept of the tax system as a whole, I am certain that it is much more important to find gray areas for the people to understand it even better and know its benefits or costs. On a related note, every Filipino citizen should care about how the law is taking effect because we are the ones who provide the taxes and we are also directly affected by it. Yes, personal income taxes have been reduced and take-home pay has been increased, but at what cost? The benefits of TRAIN Law will not be fully enjoyed by the people if they have no choice but to face the rising prices of common products such as sugar-sweetened beverages, kerosene, gasoline, and other petroleum products.
Reading and watching a lot of reliable materials that discuss TRAIN Law, I can firmly believe that its implementation is still insufficient, probably because of the lack of analysis that it went through before its passing as a law. Taxing the sweetened beverages will not be enough to lessen sugar consumption because sweetened beverages, such as soft drinks, are undoubtedly a staple at the dinner table among families especially during occasions. The law may also be a contributing factor to the Filipino consumers’ suffering to obtain basic necessities, together with the inevitable rising inflation in the country. Even if unconditional cash transfers (UCTs) will be given to the poorest families, a monthly cash grant of PHP200-PHP300 (Department of Social Welfare and Development, 2018) is not enough for the poor to survive—let alone getting out of poverty.
Tax evasion is also a factor here, wherein lots of rich and well-connected people deliberately avoid paying the right amount of taxes by finding loopholes or connecting to those with power. Because of this, the majority of the people face the consequences. To solve this problem, a genuine solution of a progressive tax system should be fully implemented, with the intention of accumulating more taxes from those who can pay more to gain more fundings without encumbering the ordinary people.

LEARNING
While taxes are considered a burden to the common people, it is indispensable for the fact that it is the very backbone of economic stability. Without taxes, the government will simply not survive and cannot fulfill its duties for the people. Since we are the ones who are providing the government’s funds by paying taxes, we should not be afraid to hold the government accountable and demand transparency. We need to know where the taxes are going. The best thing that we can yearn for is a progressive tax system that will serve its sole responsibility of improving the welfare and services to the public. But for now, I still see the imposition of TRAIN Law as pro-elite and we, the common people, will be the ones who will be critically affected if this still continues for long.
Although I understand that solving the underlying problems in the Philippine tax system is definitely not easy, it is crucial that the legislators should look at things in the eyes of Juan Dela Cruz. He understands the lives of the majority of the people for he himself is part of the people, too. By prioritizing the poorest of the poor and relieving the weight the people in the middle class carry through genuine reforms that are for the people and with the people, there is hope that we can witness a thriving country where the government is using its taxes for the benefit of every Juan.
REFERENCES
Department of Social Welfare and Development. (2018). Implementing Guidelines for the Unconditional Cash Transfer Program. Retrieved from DSWD: https://www.dswd.gov.ph/issuances/MCs/MC_2018-003.pdf
Punongbayan, J. (April 25, 2019). [ANALYSIS] How the TRAIN law worsened poverty, inequality. Retrieved from Rappler: https://www.rappler.com/voices/thought-leaders/how-tax-reform-law-worsened-poverty-inequality-philippines
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