Train Law to help stop Filipinos’ bad habits
THETax Reform for Acceleration and Inclusion (Train) Act aims to help Filipinos stop their bad habits, like smoking and drinking liquor, an economics professor said.
“Yung pag-change ng lifestyle siguro ang masyadong hindi napapaguusapan sa Train law. Yung tipong naiimpluwensyahan ang habits nila from purchasing these products because of the price increase (Maybe the change in lifestyle brought by Train law is not really much discussed. Their habits of purchasing these products are influenced because of the price increase),” Ma. Ritchell Abordo, Ateneo de Davao University (AdDU) Department of Economics professor, said Friday, January 11, during a press conference at the university.
Among the provisions of the law which was enacted in 2017 are a P6.00 per liter hike on drinks with caloric and noncaloric sweeteners while drinks with high fructose corn syrup were taxed an extra P12 per liter.
For cigarette products, a P35 per pack tax rate is implemented from July 1, 2018 until December 31, 2019. This will continue to increase to P37.50 by January 1, 2020 until December 31, 2021. And by January 2022 until December 2023 the effectivity of its tax rate will be P40 per pack.
Abordo added that in this way, Train law helps people refrain from buying products which may cause serious health illnesses like lung cancer for smoking, and liver-related diseases for excessive alcohol drinking.
Meanwhile, the economics professor said discussions like economic fora on the Train law must continue in order to educate Filipinos on the relevance and effect of the implementation of the law.
Based on Republic Act No. 10963 or Train Act, the tax reform law aims to generate fund for the government’s infrastructure, military modernization programs and social services.