Govt revenue from Train exceeds target in first half of 2018

REVENUE from the first package of tax reform exceeded the government’s target for the first half of the year, Finance Secretary Carlos Dominguez 3rd told legislators on Tuesday.

“The Train Law, which you kindly passed, and which was implemented at the start of 2018, contributed P33.7 billion in revenues for the first half of the year – surpassing our target by P3.6 billion,” Dominguez said at the briefing by the interagency Development Budget Coordination Committee (DBCC) at the House of Representatives.

Implemented in January, the Tax Reform for Acceleration and Inclusion Act or Train exempts those earning annual taxable incomes of P250,000 and below from paying personal income tax.

To offset the loss, the law also contains revenue-enhancing measures that aim to support the government’s plans to boost spending on infrastructure and human capital development.

The law’s provisions include the removal of certain value-added tax exemptions; adjusted tax rates for fuel, automobiles, tobacco, coal, minerals, documentary stamps, foreign currency deposit units, capital gains for stocks not in the stock exchange and stock transactions; and new taxes for sugar-sweetened beverages and non-essential cosmetic procedures.

The Train also introduced cuts in estate and donor’s taxes. MAYVELIN U. CARABALLO

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