Tax reform Law Insight!
Tax reform Law, Favor or infavor?
At first it was a good news for someone who was exempted on new tax reform law. Those who has Php 21,000 and below monthly earner will be entitled for tax exemption, but is it really worth it?
President Duterte signed tax reform law last December 19, 2017 package with P3.767 trillion 2018 annual budget, tax reform for acceleration and Inclusion (train law) will entitles those who earn a Php 21,000 and below for not paying the tax starting 2018. The said ceremonial was held in Malacañang and led by Mr. President. Inclined with it also raises tax exemption for 13th month pay and other bonuses to Php 90, 000 which will be a big help to low earner employees. Sounds good? On the other hand is this really a big help or will turn another burden to Filipino people since around 90% of the total individual tax payers will be exempted starting this year.In order to compensate for loss of revenue we are starting to pay excise taxes to petroleum, beverages, can goods, diesel, tobaccos and other necessity that we need on everyday living.
For instance, some public transportation organizations are requesting fare hike (double) due to added excise tax for fuel and other petroleum products.
Supermarkets starting to implement higher prices for their can goods, milk, softdrinks, cigarettes and products uses sugar and artificial sweeteners.
On my case, I was earning Php 21,000 below monthly and can save almost 2000 a month but considering all expenses like food, transportation, electric bills, grocery bills I can conclude that this additional take home pay will not cover additional expenses that train law will cause me.
For now, children, seniors, unemployed citizens and minimum wage earners are experiencing this price hikes unlikely before when not yet signed those who earns higher than set minimum wage it set to pay taxes to cover government projects, programs and other expenses. These additional taxes will be passed to consumers regardless if employed or unemployed. All in all, I am infavor of this implementation that first can say we will have a higher take home pay but actually this tax reform law can lead to a higher monthly bills due to excise taxes.