Saturday, August 25, 2018

Understanding how the TRAIn Law affects us moms

Confession time, mamas. I’ve been so lucky that for the past decade I’ve been a working wife and mother, I’ve never had to budget my groceries. One of the joys my husband and I have is just throwing everything we want into our grocery cart. We’ve been really fortunate to have lived this way for many years. But beginning this year, I’ve felt a real change in my budget. Is it because I have three growing boys who eat and eat all day? Is it inflation? Is it the TRAIn Law? All three, I guess.

I personally feel the effects of the new TRAIn Law on my grocery bills. Good heavens, do you feel it, too, mamas? How do feel about the TRAIn Law now that we’ve experienced it for almost 8 months now?

I can’t put my growing boys on a diet and I can’t do anything about inflation and a new tax law that I really misunderstood. Well, I can try to understand it better! Last year, when it was being proposed, I thought it was great. The Tax Reform for Acceleration and Inclusion Law or TRAIn Law took effect at the start of this year and since may pros and cons siya, I thought we should at least give it a chance.

What I liked about it: 

1. Personal income tax is reduced, which means higher take-home pay!

2. Self-employed people like myself can avail of the 8% fixed tax rate instead of the graduated income taxes (I forgot to avail it, though, so here I am not benefiting from the new tax rates - boo!).

3. Higher VAT threshold so people like me with businesses that earn less than P3 million are VAT-exempt. Dati kasi, P1.9 million, considered VAT na.

4. Homeowners’ dues are no longer charged VAT. Hooray!

What I don’t like about it: 

1. Personal and other tax exemptions have been removed under the law because reduced na naman daw yung income taxes.

2. Beverages sweetened by sugar, artificial sweeteners and corn syrup are taxed from P6 a liter to a whopping P12 a liter! It’s not the amount of sugar in the product that’s taxed—it’s the yield of the product.

3. The P8 tax increase on petroleum products.

4. Taxes on government documents have doubled.

On a daily basis, what I instantly see as an effect of the TRAIn LAw is the additional taxes on sweetened drinks. My family loves cold and refreshing drinks! My kids really like their juice, especially with meals and with baon. Just look at my boys enjoying our little birthday party with juice!

No party is complete without refreshing drinks!

Birthdays are made happier with sweet things!

As you can see, life’s just so much better when you add a bit if sweetness to it, whether it’s a piece of candy, a slice of cake, or a glass of juice. So when those treats are affected by a new law, we want to know why, right? Here’s a video I saw on my friend Rowena Lei’s blog about how sweetened beverages were affected by the TRAIn Law and why these new taxes had to happen:

Okay. So it’s for The Build Build Build plans which will help boost businesses and tourism all over the country. Honestly, I’d rather that the money that will fund these infrastructure projects come from our own pockets instead of putting our country in massive debt again. So I’m on board with the TRAIn Law. Kahit mahirap! If it means better highways, more bridges, massive and interconnected train/subway systems, more schools, more hospitals… The government can count me in. I just really hope they deserve our trust now that we’re giving them more money.


  1. I like Train Law, advantage siya sa mga single income family like me, at least higher ang take home pay ni hubby. Though ramdam naman talaga pag increase ng bilihin pero adjust na lang sa budget. Drink more water na lang kami, mas healthy pa. If you compare it sa ibang bansa, mas mahal pa nga softdrinks nila kaysa sa Pinas.

  2. Mommy, I like your take on the TRAIN Law. Perhaps this is something which most people will not appreciate because it has never been explained this way. If you will watch TV, most news would highlight on the increased prices because of the law but failed to position it in a way that common "tao" will understand and appreciate the reason. I should think this is a matter of lifestyle change naman if the goal is for the greater good.

  3. I dont have much knowledge bout train law but after reading this i find this so informative and i like your take on this matter. Thank you for sharing your thoughts bout this.❤


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