Metro Manila (CNN Philippines, September 25) — Gains from the Tax Reform for Acceleration and Inclusion (TRAIN) law surged this year, data released by the Department of Finance (DOF) showed.
The first tax reform package yielded ₱55.6 billion from January to June, marking a 65 percent jump from the 33.7 billion raised during the same period in 2018.
The DOF said this also surpassed the ₱52.1-billion target set for the first semester.
Republic Act 10963, or the TRAIN law, took effect January 1, 2018. It reduced the income tax rates for low- and middle-income earners and jacked up the duties for multimillionaires, while raising taxes on fuel, sugary drinks, cars and cosmetic procedures, among other consumer goods.
During the DOF’s budget presentation in the Senate Wednesday, Secretary Carlos Dominguez III said the Bureau of Customs doubled its collections to ₱41.8 billion from ₱19.3 billion a year ago. On the other hand, the Bureau of Internal Revenue raised ₱13.8 billion, lower than last year’s ₱14.4-billion tax haul. Both units surpassed their collection targets set at ₱40.1 billion and ₱12 billion, respectively.
TRAIN collections reached ₱68.4 billion in 2018.
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The government eyes to raise ₱3.15 trillion in total revenues and spend ₱3.7 trillion this year. Revenues are projected to hit ₱3.5 trillion in 2020, as the DOF anticipates the passage of more tax reform measures.
Sin taxes on cigarettes, alcoholic drinks are up for another hike starting 2020, while e-cigarettes and vapes will also be covered by duties.
CNN Philippines Correspondent Crissy Dimatulac contributed to this report.
