Money Matters

Econ prof: TRAIN Law aims to help Filipinos cut bad habits

An economics professor said that the Tax Reform for Acceleration and Inclusion (TRAIN) Law or Republic Act No. 10963 aims to influence behaviors of Filipinos, helping them stop their bad habits like smoking and drinking liquor.

“Yung pag-change ng lifestyle siguro ang masyadong hindi napapag-uusapan sa TRAIN Law. Yung tipong naiimpluwensyahan ang habits nila from purchasing these products because of the price increase (Maybe the lifestyle change brought about by the TRAIN Law is not discussed. The purchasing habits are affected by the price increase),” said Ma. Ritchell Abordo, a professor of economics from the Ateneo De Davao University (AdDU) in a press conference.

By the numbers

The TRAIN Law enacted in 2017 added ₱6.00 to drinks with caloric and non-caloric sweeteners, as well as an extra ₱12.00 per litter to drinks with high fructose corn syrup.

The tax rate for cigarette products are at an additional ₱35.00 per pack from July 1, 2018, until December 31, 2019. Several more price hikes are expected for cigarettes – it will increase to ₱37.50 by January 1, 2020, until December 31, 2021, and will be ₱40.00 in January 2022 until December 2023.

Abordo explains that these price hikes from the TRAIN Law helps people refrain from buying these products, that may cause serious health problems.

Abordo ads that discussions and fora on the TRAIN Law must continue to help educate Filipinos on the Law, its relevance, and its effects.

The TRAIN Law aims to also generate funds for the government’s infrastructure, military modernization, and social service programs.

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