ABS-CBN's infographic details effect of new tax (TRAIN) law


The Tax Reform for Acceleration and Inclusion (TRAIN)--signed into law by President Rodrigo Duterte on Dec. 19, 2017--is the first among several tax reform measures of the administration. The TRAIN will have an impact on the take-home pay of Filipinos, prices of goods and services, and spending and consumption patterns. (The Tax Reform for Acceleration and Inclusion or TRAIN Law; ABS-CBN Research and Investigative Group; infographic by Pamela Ramos; Posted at Dec 19 2017 06:04 PM) Under the TRAIN, personal income tax rates will be adjusted to shift the burden off lower-income segments toward the “ultra-rich.” Meanwhile, projected revenues to be foregone from lower personal income tax will be offset by higher excise levies on petroleum and automobiles, among others. Under its P8.44-trillion 2017-2022 “Build, Build, Build” program, the government aims to jack up its spending on infrastructure alone to P1.899 trillion, equivalent to 7.45 percent of gross domestic product, by the time Duterte ends his term in 2022. However, the estimated tax take from the new tax law is less than the Department of Finance had hoped to raise, with TRAIN expected to generate $1.8 billion in revenues in its first year. (What does TRAIN law mean to ordinary Filipinos? By Ian Nicolas Cigaral (philstar.com) | Updated December 20, 2017 - 5:48pm)

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