What is the
Tax Reform Program?

We are redesigning our tax system to be simpler, fairer, and more efficient for all, while also raising the resources needed to invest in our infrastructure and our people. We will lessen the overall tax burden of the poor and the middle class.

The Tax Reform for Acceleration and Inclusion (TRAIN) is the first package of the comprehensive tax reform program (CTRP) envisioned by President Duterte’s administration, which seeks to to correct a number of deficiencies in the tax system to make it simpler, fairer, and more efficient. It also includes mitigating measures that are designed to redistribute some of the gains to the poor.

Through TRAIN, every Filipino contributes in funding more infrastructure and social services to eradicate extreme poverty and reduce inequality towards prosperity for all. TRAIN addresses several weaknesses of the current tax system by lowering and simplifying personal income taxes, simplifying estate and donor’s taxes, expanding the value-added tax (VAT) base, adjusting oil and automobile excise taxes, and introducing excise tax on sugar-sweetened beverages.

What will the tax reform fund?

1. Education

The tax reform will be able to fund investments in education, achieving a more conducive learning environment with the ideal teacher-to-student ratio and classroom-to-student ratio:

Achieve the 100% enrollment and completion rates
Build 113,553 more classrooms
Hire 181,980 more teachers between 2017 and 2020

2. Healthcare Services

With the tax reform, we can invest more in our country's healthcare by providing better services and facilities:

Upgrade 704 local hospitals and establish 25 local hospitals

Achieve 100% PhilHealth coverage at higher quality of services

Upgrade and/or relocate 263 rural and urban health units to disaster-resilient facilities

Build 15,988 new barangay health stations

Build 2,424 new rural health units and urban health centers

Between 2017 and 2022, hire an additional 2,424 doctors, 29,466 nurses, 1,114 dentists, 3,288 pharmacists, 2,682 medical technologists, 911 public health associates, and 2,497 UHC implementers

3. Infrastructure Programs

The additional revenue raised by the tax reform will be used to fund the infrastructure program of the Department of Public Works and Highways (DPWH), which consists of major highways, expressways, and flood control projects. Funding these major infrastructure projects is possible with tax reform for our country to sustain high and inclusive growth.

SOURCE: Department of Transportation

The proposed tax reform program aims to provide the needed additional revenues that would fund our country’s investment needs, promoting better lives for Filipinos.

SOURCE: Philippine Statistics Authority, Department of Public Works and Highways, and DOF staff estimates