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Benefits of TRAIN

Health and Education


Complementary Measures
Tax Administration Unconditional Cash TAX
REFORM
TRAIN will fund priority programs and projects in education, Since 2016, the Duterte Transfers (UCT)
health, and social protection. administration has focused
on improving the Bureau of

100%
Enrollment and
completion rates
113,553
Classrooms
181,980
Teachers
Internal Revenue (BIR) and
the Bureau of Customs
(BOC). TRAIN also includes
the following administrative
A P2,400* one-time support
for the poorest 50% of
households.
NOW
DOF Proposal
measures:
*Tentative amount based on actual
• Mandatory fuel marking tax revenues
100% • Provision for use of Public Transport
Establish 25 and e-receipts Modernization
upgrade 704 PhilHealth Hire 176,922
local hospitals coverage with more health • Bank secrecy relaxation
better services professionals
from 2017 to
for criminal cases
Upgrade and/or relocate
2020: • Connection of business
4,824 doctors
263 rural and urban health 104,629 nurses
accounting system to BIR Upgrade public transport to
units to disaster-resilient system
facilities 16,300 midwives be more fuel-efficient and
51,169 dentists,
Build 15,988 new pharmacists, less polluting to lower
barangay health stations medical
technologists, and
transport cost.
Build 2,424 new rural and
urban health centers public health
associates

Rural and Urban Infrastructure


TRAIN will fund the countryside’s investment needs. Target
improvements are:
Concretize Provide Irrigate
14,187km of Road access 1.3 million
national roads to 7,834 isolated hectares of land
and 30,209km barangays and The Tax Reform for
of local gravel 23,293 sitios
roads Acceleration and Inclusion
(TRAIN) seeks to change the
Funds will be raised for major infrastructure projects,
including:
current tax system to make it
Pulilan-Baliuag Diversion Road Daang Maharlika (NRJ-Sibagat simpler, fairer, and more
Camarines Sur-Albay Diversion Section) (Mandamo-Las Nieves efficient. Through TRAIN, every
Road Section)
Valencia City-Pangantucan
Filipino contributes in funding
Maasin City Coastal Bypass
Road cum Sea Wall Diversion Road more infrastructure and social
Tacloban City Bypass Road Bonifacio Global services to eradicate extreme
City-Ortigas Center Link
Panay East-West Road Road
dof.gov.ph/taxreform
poverty and reduce inequality.
Cagayan de Oro Diversion C-5/Katipunan Viaduct
Road
TRAIN is a priority reform of the
DOFPH DOF_PH #TaxReformNow Duterte administration.
3.0
TRAIN corrects the complex and unjust tax system. It reduces personal income tax,
simplifies estate and donor’s taxes, expands the value-added tax base,
and increases oil and automobile excise taxes.

Personal Income Tax Value-Added Tax (VAT) Oil Excise Tax


99% of taxpayers will pay less taxes. Many use the exemptions in our current VAT system to pay To invest in the country's future, oil excise will be raised by
Upon implementation less tax. We need to limit exemptions to stop leakages. P6 gradually over three years and indexed yearly after the
third year. This is very progressive
Annual Taxable Income Tax Rate Philippines 59 lines of exemptions (of which 11 are
0 - 250,000 0% overlaps with special laws) and 84
additional exemptions in special laws FUEL CONSUMPTION BY INCOME DECILE
Over 250,000 - 400,000 20% of the excess over 250,000
Over 400,000 - 800,000 30,000 + 25% of the excess over 400,000
Over 800,000 - 2,000,000 130,000 + 30% of the excess over 800,000
12%
Over 2,000,000 - 5,000,000 490,000 + 32% of the excess over 2,000,000 Indonesia 37 lines of exemptions 0.6% 1.8% 2.8% 4.1% 4.5%
Over 5,000,000 1,450,000 + 35% of the excess over 5,000,000 1 st 2 nd 3 rd 4 th 5 th
10%
2021 onwards Vietnam 25 lines of exemptions
Annual Taxable Income Tax Rate
0 - 250,000 0% 10% 5.2% 6.5% 9.1% 14% 51.5%
Over 250,000 - 400,000 15% of the excess over 250,000 6 th 7th 8 th 9 th 10 th
Over 400,000 - 800,000 22,500 + 20% of the excess over 400,000
Thailand 35 lines of exemptions
Over 800,000 - 2,000,000 102,500 + 25% of the excess over 800,000
Over 2,000,000 - 5,000,000 402,500 + 30% of the excess over 2,000,000
7% 51% of fuel is consumed by top 10% of Filipino
Over 5,000,000 1,302,500 + 35% of the excess over 5,000,000 Malaysia 14 lines of exemptions families (earning at least P113,000 per month).

This simplified tax system will 6% 13% of fuel is consumed by wealthiest 1% of Filipino
families (earning at least P288,000 per month). The
increase take-home pay and put
more money in people’s pockets. To expand the tax base, TRAIN will limit exemptions to same percentage is consumed by the poorest 50%.
necessities—raw food, education, and health—and instead
Bonuses not exceeding P82,000 use the budget to help the poor and vulnerable. The VAT base Rates of oil excise have not been adjusted since 1997.
will continue to be exempted. broadening covers: Adjusting them addresses environmental and health
• Cooperatives, except • Power transmission problems as well.
producers of raw agriculture • Low cost and socialized
Estate and Donor’s Tax products and with gross housing Automobile Excise Tax
sales of P3 million and
Estate tax Donor’s tax • Lease of residential units Increase in tax rates of luxury cars will be higher than the
below
• Boy scouts and girl scouts increase in tax rates of basic cars. This makes the tax work
• Domestic shipping for those who have less.
importation • Other special laws with VAT
exemption Suggested retail price (SRP) of typical automobiles
• Single tax rate of 6% of the • Single tax rate of 6% of net Brand and Model Tax Rate Change in SRP
estate’s net value donations for gifts above Senior citizens and PWDs will still
Toyota
• Standard deduction of P1 P100,000 yearly, enjoy exemptions. Vios 1.3 Base
4% P10,734
million and exemption of regardless of relationship
Mitsubishi
up to P3 million for family Mirage G4 GLS
4% P13,261
homes Limiting VAT exemptions will raise Toyota 24,000 + 40% in excess
SUBSIDIES Innova 2.0 J of 600,000 P43,725
more funds for the poor and
vulnerable.
Data are updated as of June 14, 2017.
Figures subject to change as new data are available.