Many Filipino people have viewed this change in different perspective,
With the much-awaited tax reform law that arrived this year. A lot have dubbed it as a blessing to meet every family’s need while others have seen this as anti-poor drama that puts more taxes on the commodities. Here are the Five Effects of TRAIN law to Filipinos.
1. TRAIN reform brings more money to every family.
Despite the melodramatic increase of many people in the social media about the bad effects of this law, a lot of people appreciated the more money they can get when receiving their salaries.
“A simpler, fairer, and more efficient tax system is needed to promote investment, create jobs, and reduce poverty. Not reforming the tax system will deprive the poor of the necessary social services and infrastructure that can lift them out of poverty and make them more productive contributors to society.”
Carlos G. Dominguez
Secretary of Finance
2. Money for the People
In a simple concept, the less tax the more money they can get, the more money they can receive the more money they can consume. The cycle never ends.
3. Prices of Commodities Increased
Among the provisions of the law are a P6 per liter hike on drinks with caloric and non-caloric sweeteners while drinks with high fructose corn syrup will be taxed an extra P12 per liter.
4.Prices Stock Market Increase
with the influx of prices on commodities, the stocks in the market has relatively affected by this movement. By this being measured a lot of the stocks on equity, balance fund and index fund was definitely affected as well.
5. Prosperity to Philippine Economy
“Dramatic fiscal turnaround, but much more needed to move from stability” says Dept of Finance. The goal of DOF is to grow the economy by increasing household consumption that would result in higher GDP complex.
What do we expect in the next 6 months?
The Philippine economy continued to grow strong. According to the business world, the country has provided “strong finish” in the overall measurement of the fastest growing economies in Asia after China and Vietnam.
“This is very much in line with the government’s commitment to timely delivery of public services and social protection programs, including assistance to victims of typhoons as well as in the Marawi conflict, public scholarship programs and health expenditure programs,” said Mr. Pernia, who heads the National Economic and Development Authority (NEDA) as director-general.
The Duterte administration has planned for the acceleration of the P8 trillion infrastructure plan that resulted to 18 projects to ground break this year.
The Philippine economy will grow definite height if we keep this trending efficiently. We are confident that the government is doing their part in relentlessly providing the boost of the economy by far on the projects being built and the fight against corruption instituted by the administration.