HOW TRAIN LAW AND EXCISE TAX CHANGE OUR SOCIETY!
We all know that taxes is the main source of our Government to support their programs, taxes play the big part in developing our country by helping our government. But the government recently passed a law the Tax Reform Accleration and Inclusion or Republic Act 10963 simply called THE TRAIN LAW.
Now I can say that we totally got the change that our president promised to us when he still running for that position. Many changes came when President Rodrigo Duterte become the most powerful person in our society. The administration of President Rodrigo Duterte started 2018 by implementing TRAIN, which reduced personal income taxes but increased those on cars, tobacco, sugar-sweetened beverages, and fuel.
The Train law also imposes new taxes in the form of excise tax on sweetened beverages and non-essential services and removes the tax exemption of Lotto and other PCSO winnings amounting more than P10,000.
The most popular part of the Train law is the reduction of personal income tax of individual taxpayers. Prior to the enactment of the new law, an individual employee or self-employed taxpayer normally have to pay income tax at the rate of 5% to 32%, depending on one's bracket. Under this law , an individual with a taxable income of P250,000 or less will now be exempt from income tax. Those with a taxable income of above P250,000 will be subject to the rate of 20% to 35% effective in 2018, and 15% to 35% effective in 2023. Moreover, the deductible 13th month pay and other benefits are now higher at P90,000 compared to P82,000 under the old law.
There so many negative result of passing this kind of law including the following:
1. They decrease our income tax, but they double the value added tax in our daily need.
2. They decrease the tax of the poor but those poor people are the most affected in passing the excise tax.
3. They increase the passive income wherein they imposes higher taxes on some passive incomes, including interest income from dollar and other foreign currency deposits.
4. Even the sweetened beverages and non-essential services are included in this TRAIN LAW.
5. Eventhough the rich will give the big amount of tax to paid but still they are the businessman / businesswoman who gain more money by the help of excise tax and other new law about tax passed by the government.
Reference:
https://www.rappler.com/thought-leaders/192873-train-tax-reform-law-what-does-it-change-explainer
https://www.autoindustriya.com/features/excise-tax-simulation-how-expensive-will-the-cars-of-2018-be.html