Xavier University – Ateneo de Cagayan

School of Business and Management

SY 2019-2020

FINAL CRITIC THOUGHT PAPER

Submitted by:

Necky Sairah L. Yatan

HISTORY 1- BC

Submitted to:

Dr. Roel B. Absin

History Teacher

October 1, 2019
TRAIN LAW Tax Reform for Acceleration and Inclusion Act –
December 2017

Knowing the law is not the same as knowing how it will be

implemented. New laws require rules and regulations on how these

changes will be applied. These implementing rules and regulations are

issued soon after the law is enacted. In the case of the Tax Reform for

Acceleration and Inclusion (TRAIN) Act, the issuance was spread out

through the year. In fact, the first of these regulations was released before

2018.

President Rodrigo Duterte on Tuesday, December 19, signed into law

the first package of the much-awaited tax reform program—the central

piece of the government’s plan to raise the bulk of needed funds for the

Duterte administration's ambitious infrastructure drive. Known as the Tax

Reform for Acceleration and Inclusion law, the tax program overhauls the

country’s 20-year-old tax regime in a bid to make the tax system fairer and

simpler. The fresh law takes effect 15 days after it is published in the

Official Gazette or publications of general circulation. Under the TRAIN,

personal income tax rates will be adjusted to shift the burden off lower-

income segments toward the “ultra-rich.”

This year marks the full implementation of the Tax Reform for

Acceleration and Inclusion (TRAIN) Act. This landmark measure is among

the cornerstones of President Rodrigo Roa Duterte’s poverty alleviation

initiative. Having said this, it is the duty of government to sufficiently

inform the people on how this new law would affect their everyday lives .

Apart from simplifying the country’s tax system, TRAIN allows for a better
collection of government revenues to fund projects on infrastructure

modernization and human capital formation, all while easing the burden of

the average Filipino wage earner. In line with our firm commitment to

provide timely, reliable and accurate information to citizens on the benefits

of the government’s agenda, we have come up with a TRAIN Primer to help

explain the law’s key provisions to the public. We hope to educate and

enlighten our people that this vital piece of legislation is not just a victory

for the government, but also for all Filipinos. We thank the Department of

Finance and the Department of Trade and Industry for their valuable inputs

in this primer. The Duterte administration indeed is a government of tapang

at malasakit. TRAIN or the Tax Reform for Acceleration and Inclusion is the

first package of the comprehensive tax reform program (CTRP) envisioned

by President Rodrigo Roa Duterte’s administration. The final bicameral

conference on TRAIN was held. President Rodrigo Roa Duterte signed the

Republic Act 10963 also known as TRAIN law Implementation of the TRAIN

law on December 11, 2017.

TRAIN aims to make the current tax system simpler, fairer, and more

efficient. Eradicate extreme poverty, provide equal opportunities through

inclusive economic and political institutions and achieve high income

status. Reduce the poverty rate from 26% to 17% uplifting about 10

million Filipinos from poverty Achieve middle – income status. What are

the benefits of TRAIN? In the next 5 years, the tax reform can fund

629,120 public school classrooms, or 2,685,101 public school teachers.

EDUCATION Create a more conducive learning environment with the ideal

teacher-to-student ratio.
 The Republic act No. 10963 or also known as the TRAIN (Tax Reform

for Acceleration and Inclusion) law is the first step in fulfilling the multi-

billion infrastructure program of the current administration. The law aims

to generate enough funds needed to start the Build Build Build Project.

Under this new law, the personal income tax of employees, both public and

private, are reduced and equalized. Therefore, there is a higher excise

levies imposed on automobiles, petroleum, coal, mining and sugar-based

products to name a few. As the TRAIN law takes effect, it encountered

resistance from different sectors stating certain provisions as ’anti-poor”.

The law emphasizes on tax exemption of those employees having an annual

taxable income of P250, 000.00 and below income this year 2018 to

subsidize them considering the tax increase on certain commodities.

However, the TRAIN laws have a huge effect to the country’s poorest

considering that they are to endure the higher prices of goods and services

without getting any income tax exemptions. Most of the families in the

country do not pay income tax even before the implementation of the law
as they are minimum wage earners or in the informal work with low and

unstable incomes. This leaves those families to be burnt with these high

prices without even having income tax gains. If you recall, back in

December 2017, lawmakers touted TRAIN as the Duterte government’s

“best Christmas and New Year’s gift” for the Filipino people, a milestone in
the country’s tax reform history.

But aside from the public backlash that TRAIN met last year – when
inflation shot up to record highs – two studies by researchers at the
Philippine Institute for Development Studies (PIDS) show that TRAIN
worsened the plight of millions of Filipinos. Specifically, using numerical

simulations, the studies demonstrate that TRAIN likely worsened poverty

and income inequality in the country. In this article let’s unpack these two

important studies and the conclusions they arrived at. We have all those
problems; inflation is always there. There are many reasons but also
actually one of them is the TRAIN but I need money also to run the

country,” said President Duterte during the Presidential Security Group

(PSG) change of command ceremony, emphasizing that TRAIN Law

generates government revenues which would support government projects

and campaigns made for the people.

For the poor, they’re on a big disadvantage because their earnings

are not taxed; hence, any change in the tax rates won’t be provide an

impact. On the other hand, price adjustments, hike in transportation fares

and commodities will greatly affect them.

Instead having additional take home pay for each worker given the

lower income tax provided in the law, the poorest of the Filipino households

will continue to have less money income 2020 with full implantation of the

excise tax. Therefore, the TRAIN law envisions a society in which the

economic status stabilizes overtime. With the long-term effect of having

more infrastructures which can encourage investors, reduce

transportations and increase overall productivity, simplify the complicated

tax system, and hinder inflation, they foresee a better country. But the

administration seems to fail in perceiving its real effect on the marginalized.

Direct or indirect the effect may be to the poor; it still has a huge impact

on their lives. Without any increase in their take home income, they will
never be able to catch up with the increasing prices of commodities which

would lead them to suffer more in poverty. Having the interest and welfare

of the public as their primary concern, it is just to consider amending

certain provisions of the law to ensure that no one is left behind while the

others emerge richer.

Bangsamoro Organic Law in July 2018

War and conflict in Mindanao are one of the country’s biggest issues

that roots back with their disputes over ancestral land and religion. The

Bangsamoro Autonomous Region in Muslim Mindanao is the home of the

Muslims who fight for their self-determination and aspirations for a peaceful

and progressive region. Peace remains elusive and Mindanao is a powder

keg that can explode any moment. The problem is complex with deep

historical roots. And its history, a tangled web confusing to follow. But at

present, the passage of the Bangsamoro Basic Law in Congress is seen as

the way forward to finally bringing peace in Mindanao.

But what is the “Bangsamoro”? The Bangsamoro is the secular

autonomous government mandated in the Constitution. The Bangsamoro

is not an Islamic state. Identity or the Bangsamoro People Political entity

or the Bangsamoro that will replace the ARMM Government or the

Bangsamoro Government that will replace the ARMM Regional

Government. Bangsamoro people refers to those who, at the advent of the

Spanish colonization, were considered natives or original inhabitants of

Mindanao and the Sulu archipelago and its adjacent islands, whether of

mixed or full blood, shall have the right to identify themselves, their

spouses and descendants, as Bangsamoro. The Bangsamoro Government

shall recognize and promote the rights of non- Moro indigenous peoples in

the Bangsamoro. The freedom of choice of all people in the BAR shall be

respected. Indigenous peoples have the freedom to retain their distinct

indigenous and ethnic identity in addition to their Bangsamoro political

identity. There shall be no discrimination based on identity, religion and

ethnicity. Republic Act No. 11054 “Act providing for the Organic Law for

the Bangsamoro Autonomous Region in Muslim Mindanao, repealing for the

purpose RA 6734, entitled “An Act Providing for an organic act of the

ARMM,” as amended by RA 9054, entitled “An Act to strengthen and

expand the Organic Act for the ARMM”

“I make the solemn commitment that this administration will never

deny our Muslim brothers and sisters the basic legal tools to chart their own

destiny within the constitutional framework of our country. “President

Rodrigo Roa Duterte on his administration’s commitment to pass the

Bangsamoro Organic Law. Malacañang released the Bangsamoro Organic

Law (BOL) or Republic Act Number 11054 a day after President Rodrigo

Duterte signed it. The law is historic as it means the Duterte administration

has surpassed the previous administration in fulfilling its promise to create

a new Bangsamoro region in place of the Autonomous Region in Muslim

Mindanao (ARMM). Why do we need to pursue the peace process? We are

pursuing peace and stability in Muslim Mindanao through a negotiated

political settlement to address; Historical injustices committed against the
Bangsamoro; mineralization and landlessness; Relative economic
deprivation and underdevelopment (bring lag regions like the Bangsamoro
at par with the other more developed regions in the country); Political and
cultural marginalization; the just aspirations of the Bangsamoro people for
self-determination while preserving and strengthening the territorial

integrity of the Republic of the Philippines. We aim to address these as

envisioned in the Comprehensive Agreement on the Bangsamoro (CAB) and

as further provided in the proposed Bangsamoro Basic Law (BBL). Updates

on the Bangsamoro peace process Date Milestones, November 17, 2016

Executive Order No. 8 was issued, creating the new 21- member
Bangsamoro Transition Commission (BTC) with the mandate to draft the
Bangsamoro enabling law that will pave the way for the creation of the

Bangsamoro political entity. February 10, 2017 Pres. Duterte named the

21 members of the BTC. February 24, 2017 BTC was officially launched in

Davao City, 11 from MILF and 10 GPH (including 3 from MNLF- Jikiri/Sema

Group), ARMM, Women, Academe, Settler Community, IPs, increased in

representation and inclusive of all sectors). June 17, 2017, BTC finalized

its draft BBL. July 7, 2017 BTC turned over the draft BBL to Pres. Duterte

at the Malacañang Palace. August 14, 2017 The BBL was transmitted to

HOR and Senate by the PLLO. September 19, 2017, the BBL was included

as a priority administration bill during the 3rd LEDAC meeting. It is also

stated in the 1987 Constitutions, the 1987 Constitution (Art. X, Sec. 15)

provides for the creation of an autonomous region in Muslim Mindanao .

“There shall be created autonomous regions in Muslim Mindanao and in the

Cordilleras consisting of provinces, cities, municipalities, and geographical

areas sharing common and distinctive historical and cultural heritage ,

economic and social structures, and other relevant characteristics within

the framework of this Constitution and the national sovereignty as well as

territorial integrity of the Republic of the Philippines.” Conflict in Mindanao

is one of the country's biggest issues that dates back decades, tracing its

roots to disputes over land and religion.

The Moros, faced with land grabbing of their ancestral lands, have

been fighting for what their say is rightfully theirs . Rebel groups such as

the Moro National Liberation Front (MNLF) and the Moro Islamic Liberation
Front (MILF) turned to violence and demanded for a separate state. Past

administrations tried to attain peace in the south through negotiations, but

none have succeeded. The Bangsamoro Basic Law (BBL) is the latest of the

government's efforts to quell the conflict in Mindanao. The law will pave

the way for the creation of the Bangsamoro government, headed by a chief

minister and a ceremonial leader called a Wali. The Department of National

Defense (DND) on Friday, July 27, welcomed the signing as a means of

ushering in “a new era of peace in Mindanao.” The DND said, “We now

begin the very important step of implementing the provisions of the new

law, including the decommissioning of MILF fighters, and the possible

integration of qualified individuals to the AFP and PNP. “

It added, “Together with our brothers and sisters in the Bangsamoro,

we will show the world that violence and terror do not have a place in our

communities, and as Filipinos we can work together to achieve just and

lasting peace.” Speaking to local media, the chief of the Armed Forces of

the Philippines welcomed the passage of the BBL saying that the laws has

a “direct correlation to peace”. Over the past few decades, Bangsamoro

has been a hotbed of terrorism and extremist activity. Terrorist

organizations would exploit the Moro conflict and insurgency as a way to

recruit members. Among the organizations active there include Abu Sayyaf

and the Bangsamoro Islamic Freedom Fighters. The passage of the BBL

would now reduce antagonisms between citizens and the central

government, giving less room for other groups to exploit the sentiment of

the people. Furthermore, the passage of the BBL will negate grievances of

the insurgency groups there. If proper autonomy is granted to the region,

insurgency groups would have no reason to engage with the central
government as their grievances could be brought up with the local

government. Last Saturday, September 28, 2019, I attended the

Mindanao Peace Forum held at Capitol University and one of the topics is

about the role of Bangsamoro Youth in Pursuit of Peace in Mindanao. I was

scared at first since the speaker is a Muslim but when he introduced his
topic I was amazed by the fact that he is the son of a former leader of the
Muslim group but he was there telling on what should we do in order to

conduct a process as a youth.