Train Law to help stop Filipinos’ bad habits

Sun.Star Cagayan de Oro - - Business -

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.

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