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How fair is TRAIN law?

By Zhaskia Mae de la Cruz

(Photo Credit)

2018 has started as a year full of changes. A change of year, a change of calendar, and, for the Philippines—a change of taxation system.  And while most of the people in the world probably welcomed the new year with a “bang,” not all Filipinos have embraced 2018 with open arms.

           The main reason behind this is that on January 1st of the new year, TRAIN law,—not a literal such as the MRT or the LRT, unfortunately; we’ll still see how these systems will change or improve—or the Taxation Reform for Acceleration and Inclusion program, has taken full effect and clearly not every “Juan” is happy about it.

           First things first, however. What is TRAIN Law, and why is it hailed to be beneficial for each and everyone? Moreover, if TRAIN law is intended to have good objectives, then why is it earning negative feedbacks?

           According to the Department of Finance (DOF), TRAIN is the first of a series of packages of the comprehensive tax reform program (CTRP) envisioned by President Rodrigo Duterte’s administration, which all in turn seek to correct deficiencies in the preexisting tax system to make it simpler, fairer, and more efficient.

           Prior to that, the previous taxation system has been deemed inequitable, or in simpler words, unjust.

           In relation to this, based on the previous tax system, an employee who is earning an annual salary over P10,000 but not over P30,000 has a tax rate of P500 + 10% of the excess over P10,000, wherein with the newly implemented TRAIN Law: workers, laborers, and employees who earn an annual salary of P250,000 and below are now exempted from paying personal income tax. Now, these people can enjoy an additional take-home pay of P1,541.83 to P2,683.84 from the year 2018 and beyond.

           Good news… right?

            Well here’s the thing. TRAIN Law isn’t only about 0% tax rate for P250,000 and below annual earners. Because associated with the Tax Reform for Acceleration and Inclusion program are the following: Sweetened Beverage Tax, Tobacco Excise Tax, Petroleum Excise Tax, Automobile Excise Tax, Cosmetic Tax, Estate Tax, Donor’s Tax, Coal Excise Tax, Mining Tax, and of course the updated Value Added Tax.

           Boy that’s a lot of taxes, isn’t it?

           To narrow things down, let’s take the Sweetened Beverage Tax as an example. Under TRAIN Law, all beverages that use caloric and non-caloric sweeteners will be taxed P6.00 per liter. These include cola drinks and other soft drinks, powdered drinks, and fruit juices. While on the other hand, drinks that use high fructose corn syrup (HFCS) will be taxed P12.00 per liter. But of course, there will always be an exception to the law—milk, 3-in-1 coffee, 100% natural fruit juice or vegetable juice, medically-indicated beverages, as well as drinks that use natural sweeteners such as coco sugar or stevia are all on the safe zone.

           Now Filipinos being an avid fan of cola drinks are clearly unhappy about this. As a matter of fact, in late 2017, there was an ongoing petition on Facebook prevent the Sweetened Beverage Tax as it will greatly affect small-time sari-sari store owners as well as simple sidewalk vendors in fear that the general folks will not choose to buy soft drinks anymore.

           In addition to this, there’s also the Tobacco Excise Tax, more famously known as Sin Tax, which is seen to somehow be the answer for people to quit smoking. Initially, during the first six months of 2018, excise taxes on tobacco products will increase to P32.50, then will eventually rise to P35.00 during the remaining six months until 2019. From 2020 to 2021, the tobacco tax will rise to P37.50. A fixed tax of P40.00 will be imposed on 2022 to 2023. From 2023 onwards, tobacco taxes will rise 4% annually.

           Liquefied Petroleum Gas or LPG is taxed P1.00 tax per liter in 2018, P 2.00 tax per liter in 2019, and P3.00 tax per liter in 2020. Diesel will be taxed P2.50 per liter in 2018, the P4.50 tax per liter in 2019, and P6.00 tax per liter in 2020. Gasoline, both regular and unleaded, will have a raised tax from P4.35 per liter to P7.00 in 2018, P9.00 per liter in 2019, and P10.00 tax per litter in 2020.

           While TRAIN law is clear on its goal to create a more just, simpler, and more effective system of tax collection, wherein the rich will have a bigger contribution and the poor will benefit more from the government’s program and services, many are still saying that TRAIN Law—despite its aforementioned established goals and objectives—appears to be “anti-poor.”

           Moreover, as employees who earn P250,000 and below annually are rejoicing their 0% tax rate, below minimum wage earners now bear the burden of the increase in excise tax as they will not benefit at all from the income tax exemption. While 7.5 million Filipinos are enjoying their extra take-home pays, there are remaining 15.2 million Filipinos who are struggling with the new tax system.

           As cliché as it may sound, change indeed is the only permanent thing in the world. And as 2018 is set to be a harbinger of lots of changes, it will only be really fair (just, simple, and effective) if every “Juan”—regardless if they’re rich or poor—is capable enough of facing them head-on.

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Following the TRAIN (Law)

By Arvin Tumaliuan

(Photo Credit: 1 2)

Finally, after over 20 years of waiting for a tax reform program, President Rodrigo Duterte has signed the Republic act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) bill, into law, on December 19, 2017, the law which primarily aims to restructure the preexisting tax system into a “simple, just, and efficient” build.

           In spite of having faced heavy adversaries and suffering through countless debates and counter-arguments, the conditions of the newly-signed TRAIN Law has begun implementation since the first day of the year 2018, expected to accumulate a whopping P130 billion fund for various government agenda; infrastructure (primarily the government’s Build, Build, Build program), health, education, chiefly among others.

           Under this prime tax reform program of the Duterte administration, the take-home pay of the Filipinos will increase in amount due to a lower personal income tax.

           The bicam-approved TRAIN bill will give workers who earn P250,000 annually all in all exemption from paying tax, and those who earn higher than the aforementioned value will have to subject to the mandated income tax schedule penned into existence by the TRAIN Law.

           In essence, the tax reform has been designed to lessen the tax burden formerly imposed on the lower 99% of society—such standards stemming from the rate of income an individual earns annually—and is thus to be imposed upon the remaining 1% of society.

           Other means of generating revenue mandated by the TRAIN Law include higher excise levies on petroleum, automobiles, sweetened drinks (in layman’s term, softdrinks), surgical operations solely for aesthetic reasons, and coal.

            IBON foundation, a non-profit development organization, has pointed out that the law “only confirms the Duterte administration’s tendency towards anti-poor and pro-rich policies,” discussing at length in an article they had published that the poorer families will suffer from higher prices of commodities without getting an increase on the minimum wage.

           This, in turn, begs the question: Is TRAIN Law enough to eradicate all economic problems, or does it merely alleviate the problems for now, but will eventually blow up in the masses’ faces later on?

TRAIN’s first stop—the initial reactions 

As previously established, TRAIN Law has practically lifted the personal income tax; following this, it is then expected that the taxpayers will see an incremental increase on the price of fuel, electricity, sweet beverages, and cars, so that the loss revenue will be offset by the manufacturing taxes of these products.

           In connection to this, First Metro Investments Corporation Vice-President Cristina Ulang believes that it will be an additional burden for the consumers even if they receive higher take-home pays, for they will bear the brunt of resulting higher prices of basic goods and services.

           Despite these “sacrifices to make the system work,” as coined by Raymond Abrea, founder of Abrea Consulting Group, the long-term effect of the TRAIN Law is actually beneficial to Filipinos, as it will restrain inflation to the point that the transportation costs will decrease, and the production rate is projected to increase because of the infrastructure program.

TRAIN’s ‘station’ for the poor—what does it bring the lower class?

To protect the country’s poorest 10 million households from the infliction of higher costs of goods and services, Finance Secretary Carlos Dominguez III has assured that the Department of Social Welfare and Development (DSWD) will strengthen and prioritize the cash transfer projects.

           The DSWD is mandated to provide P2, 400 for each household in 2018, and is subject to increase come 2019 by P3, 600.

           "DSWD will identify beneficiaries based on the Pantawid Pamilyang Pilipino Program and the social pension beneficiaries. The budget for the unconditional cash transfer is included in the 2018 budget, totaling P25.7 billion," Dominguez has said in Malacanang briefing.

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“Why Not Take the Risk?”

Profit over quality?

(Photo credits from the official MMFF Facebook page)

As soon as August ends, people start flipping their calendars to the much awaited “-ber months,” signaling not only the start of the cold weather but also the manifestation of the Filipino folk’s brimming excitement towards the upcoming holidays. The show business, on a similar note, is also abuzz—but with a different kind of excitement.

Since 1975, there’s been one film festival that has managed to dominate over the Philippine cinema industry: the prestigious Metro Manila Film Festival. It is an annual film festival which opens exactly on December 25 (Christmas), resumes all the way through New Years’, and into the first weekend of January, the following year.

The MMFF has been incorporated into the Christmas tradition of most Filipino families. Every 25th, families will flock nearest cinemas just to watch the different movies included in the yearly line-ups. They spend a considerable chunk of the so-called Christmas “aguinaldo”—yet another long-upheld Filipino tradition—on paying for these movies, and most of the time they emerge out of the cinemas with satisfaction written on their faces.

However, over the years, it seems that the quality of movies included in the line-ups has significantly decreased. Rather than showcasing movies that boasts superb cinematography, Oscar-worthy plots and acting, commercial films are which dominate the festival. Aside from the obvious preference for highly probable profit-making movies, the festival also seems to favor specific faces and studios.

Every year, we watch the same faces doing the same acts in a movie with the still-same-but-slightly-changed storylines directed by the same directors and produced by the same studios, and yet, the people just can’t seem to get enough of them.

These so-called “entertainment movies” have consistently racked up profit from Filipino movie-goers ever since, so much that it’s almost fitting to state that the second ‘M’ in MMFF now stands for money. No matter how disappointing the reality is, it is to be expected.

Last year’s committee took a risk when they decided to prevent commercial films from entering in the festival, all thanks to Dr. Nicanor Tiongson. As expected, this decision was met by a lot of criticism, notably from MMFF regulars like Vice Ganda and Vic Sotto, who claimed that many families patronized their films as part of their annual tradition. Sadly, this merely strengthens the notion that people only want to sit through “comedic and lighthearted” films during the holiday season.

The pressing question, though, is that should we really sacrifice genuine movie quality for a few laughs over badly executed gags and recycled slapstick?

Because of the promising changes that last year’s festival has brought to light, many had hoped for the reformed festival to make a comeback this year as well. But as we already know it, that far-fetched dream went down the pipe months ago when the line-up was dropped.

They retained ‘some’ of last year’s substantial change, the 2017 committee argues. According to them, the films included in the current line-up have been chosen based on a certain criteria: 40% artistic excellence; 40% commercial appeal; 10% promotion of Filipino cultural and historical values; and 10% global appeal.

How nice! And yet, as we scan the line-up— will you look at that? Familiar names and faces are making a comeback. Maybe the 40% artistic excellence equates to popularity, after all?

A remake of a very ‘classic’ Filipino movie is there, the same old cliché rom-com, and, of course the ‘wholesome comedy’ films are back with vengeance.

Truth to be told, there are directors and creative staff lurking in the indie scene, with ideas of a groundbreaking magnitude. They can create mind-opening and mind-blowing films; entertaining the masses as they simultaneously render them socially aware after emerging from the theater.

A good laugh is good, once in a while. But make it a tradition and it will be difficult to be shaken off. Recycled slapstick comedy, albeit being a classic Filipino take on movie-making, must be set aside in order to make way for something new. Ever wonder why Filipino movies aren't as internationally-acknowledged as Indian, Korean, or Japanese movies, despite hailing from the same continent? It's because we stick to what we have always known.

Shed off the cloak of the past, and exit the comfort zone. Master Yoda, in The Last Jedi, has wisely imparted these words: “Greatest teacher, failure is.” This only proves that last year's line-up, despite ending up as a fiasco in comparison to the usual star-touched MMFF line-ups, is a stepping stone towards a better Philippine cinema.

The first steps are always the most difficult and the most crucial, but in order to be better, we must take the risk.

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“New players in the Arena”

Why is the internet connection in the Philippines so slow?

(Photo credit) 

Speed and cost. These are the two problems the country needs to resolve in order for the Filipinos to enjoy the internet connection that they deserve.

Perhaps, in order for the government to take interest in taking action to this issue, they must think of it as an investment for the country’s economy. Now that most works are being processed digitally, a country that provides fast but cheap Internet is a good promotion method to attract foreign businesses and investors. This will not only render the booming of our economy, but it will also increase the productivity of existing businesses in the country. But here in the Philippines where even funding on a construction of bridges is very hard to find, it seems like a super highway of data is a lost cause.

According to Akamai, the content delivery network (CDN) responsible for serving between 15 and 30 percent of all web traffic, in their Q3 2016 report, Philippines has the second slowest fixed line broadband Internet speed in the world. We clearly are still in the stone age of Internet connection when compared to other countries.

Internet cost in the country is currently at $7.10 per 1 Gigabyte (GB) of data just below $7.11 per 1GB in Singapore, ranked 14th in terms of fastest internet connection in the world whereas Philippines is at 107th. Internet here is primarily controlled by Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom, two companies which enjoy a secured duopoly in the industry. The two recently admitted that the cost of their service will not decline soon. Meaning if we want to a cheaper internet, we should not expect anything from them.

Few local Internet Service Providers (ISP) have been approved by congress to enter the game of telecommunication industry and lapsed into law last June 30. They are expected to tighten the competition and to expand Internet connectivity to provinces. Meanwhile, an international TelCo is also eyeing to invest in the country and joined the arena and is ready to be one of PLDT and Globe’s major competitor. that is China Telecom. With that kind of competition to be around, we would say, if PLDT and Globe would not make it right, they are bound to be left. Making it right means they need to provide better service and not just let people wait for the “loading” icon to rotate forever.

Knowing how to innovate is what makes humans very different from other species. We created fire to provide ourselves warmth. Industrialization happened to let machinery do most work for us. What must spark innovation in people is their determination to help people; ease their way of living. If it’s not, then it is obviously just business and not innovation. If Telco’s will keep asking money for every service they give to their subscribers, they are not different from prostitutes giving extra service for extra money.

That is why a competition is needed in order to bring their very best to win the people. Filipinos are now fed up of crappy Internet connection. For the same price they’re paying, they can get a tenfold amount of data in another country.

Internet is a public utility just as much as roads and highways. Muddy roads belong to the stone age and the government must prove we are beyond that period, that we belong to the smooth asphalted highways that will lead us to the better life we long have dreamed.

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“It which Pesters Pests”

By Beatrix Malesido

(Photo credit: 1 2 3 4 )

They’ve been there since the dawn of time; older even than our forefathers and the most ancient civilizations, they’ve been in existence and have been laying waste to hectares and hectares of fields. Pests. Varying in different shapes and sizes, these critters have been pestering fields of crop, destroying them so there won’t be any yield for the farmers to harvest come the harvesting season. They even take the form of invasive weeds which reduce the productivity by competing for water, sunlight, and nutrient (all of which are very essential for crop growth) against the crops which truly need those. Long story short, these critters and weeds are aptly named—pests, they ruin farmers’ yield and livelihood.

Don’t fret, though, because they’re somewhat under control. Sumerians did it in the glory days of Mesopotamia; they used elemental sulfur dusting in order to protect their crops from pests. Farmers got more resourceful over time, and from sulfur, they eventually turned to other poisonous chemicals: arsenic, mercury, and lead. Which triggers the question, is that not dangerous? And so experts turned their cheek towards the more natural—suffice to say, not as hazardous as the earlier chemical-based pesticides—ways, and eventually came up with pyrethrum, extracted from chrysanthemums, and rotenone, from the roots of tropical vegetables.

Containing active substances, chemicals or microorganisms, as key ingredients to ensure that the pesticide will be effective when utilized, they also contain other ingredients which will increase efficiency and will also provide better protection for the plant it will be applied on.

Nowadays, there’s a broader spectrum of which kind of pesticide to use on which pest. There are pesticides specifically for insects (insecticides), for rodents (rodenticides), for weeds (herbicides), and for algae (algaecides), among others.

Fox News, in 2012, has said that, “By stopping [these] pests in their tracks, pesticides protect your vegetation and stop disease-carrying organisms.” They added that even wooden structures in the area of planting will be protected.

Aside from outright destroying crops, pests are also directly detrimental to people’s health, bringing about vector-borne diseases such as the Lyme disease, West Nile virus, and even rabies. Another reason why pesticides are necessary.

Readily available and accessible in markets all throughout the world, pesticides are also offered in quite affordable prices. Due to this, farmers can easily protect their crops from being ruined, which will result to two more positive outcomes—first, and obviously, little to no ruined crops will result to a plentiful harvest. Second, since there’s little to no loss at all and farmers tend to pass on the cost of their losses to supermarkets, consumers will enjoy cheaper grown products.

But, of course, there’s always two sides to a coin.

Despite being wonderfully efficient and significantly helpful to farmers who choose the “easier and more reliable” way of taking care of pests, there’s a downside to using pesticides. No, scratch that. There are downsides to using pesticides.

The most glaringly apparent con of using pesticides is pesticide poisoning. It’s harmful towards pests, and also towards the environment surrounding the area in which it was applied. There’s pesticide residue left in crops, too. Moreover, due to its chemical-based nature, it also proves to be a health hazard for farmers and consumers alike. FranticFoodie reveals in an article that studies have “shown a link between mental illness and long-term exposure to pesticides.” In addition to this, it is also said that seven people in America die due to pesticide-associated poisoning.

In connection to the previous point, it becomes a problem of a larger scale because people tend to purchase pesticides for home use. This can prove hazardous to house pets, to benevolent insects which eradicate the more harmful ones, and to the family itself.

Pests, aside from being generally pests, can also develop resistance against a certain type of pesticide. Not unlike humans who can develop vaccines in order to be immune from certain diseases, pests can do that, too. This will lead to experts and manufacturers eventually seeking new and strengthened formulations of pesticides, which, may will or may not will, be more detrimental to human health as well.

If we ponder over it, we’ll only realize that it’s an endless battle. Having endured through centuries, the battle against pests in fields has taken place alongside evolution of civilization and of wars waged by humans amongst themselves. New formulations of pesticides will be developed; pests’ immunity to these formulations will be developed as well. It seems endless, this labor farmers have to undergo during crop-growing season, just to produce something for the people.

Which leaves us the question: is it truly impossible to get the best of both worlds, AKA finally coming up with a pesticide which will eradicate all known pests, and simultaneously be not harmful for the environment?

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