The train that will speed up the economy

AFTER thorough deliberation by the Congress, the much awaited tax reform package of the Duterte Administration is now a reality.

According to Secretary Leonor M. Briones, the Tax Reform for Acceleration and Inclusion (TRAIN) that was signed into law by President Rodrigo Duterte on Dec 19, 2017 will impact the take home pay of teachers.

The starting basic salary of a public school teacher (Teacher 1/Salary Grade 11) is Php 19,620. With the 2017 tax schedule, a teacher without dependents takes home Php 17,220.86 (with Personnel Economic Relief Allowance, PERA). Effective January 2018, a Teacher I is expected to receive a basic salary of Php 20,179 (3rd tranche of the Salary Standardization Law of 2015) with a net take home pay of Php 20,012.89 (with PERA). The Secretary said that these amounts to a total net increase of 16.21% or Php 2,792.03 per month.

Increase in cash allowance for 2018.The annual cash (“chalk”) allowance increased from the Php 2,500 to Php 3,500. This cash allowance shall be used for the purchase of chalks, erasers, forms and other classroom supplies and materials.

Increase in uniform and clothing allowance for 2018. The clothing allowance also increased from Php 5000 to Php 6000.

It can be remembered that Finance Secretary Carlos Dominguez III said that President Duterte’s signing into law of the landmark Tax Reform for Acceleration and Inclusion Act (TRAIN) is the government’s “biggest Christmas and New year’s gift” to the Filipino people as it will usher in “real positive change” for the nation beginning in 2018.

Dominguez said that TRAIN is a “sign of maturity” for the Philippine economy that is now ready to meet the challenges of fixing the structural problems and inequities in taxation while generating more revenues to usher in real positive change for the Filipino people

Dominguez considered TRAIN as “an important milestone in our history,” noting that this was the first time ever that a tax reform bill was passed by the Congress that was not in response to a crisis or to any external pressure. It provides for personal income tax (PIT) exemptions for the first P250,000 of taxable income, along with other significant PIT cuts for other tax brackets, provides Filipino taxpayers with “much-needed relief” after 20 years of no adjustment on the rates.

The DOF Chief said preliminary computations show that the government would be giving “almost P150 billion” back to the people in the form of tax relief under the TRAIN at the same time, it also raises “significant revenues” to fund the President’s priority and social infra programs to reduce poverty from 21.6

percent to a targeted 14 percent by 2022.

The full details of the said tax measures can be found in the official website of the Department of Finance, www.dof. gov.ph.

Before anyone should react and give negative criticism to the measure, maybe we need to give time for it to finally be felt first by those intended to be benefitted by TRAIN.

- o0O0o Director’s

Cut:(This portion features the thoughts of Atty. Alberto T. Escobarte, CESO IV, Regional Director, DepED Region 11 to all stakeholders and recipients of the efforts to improve the basic education). "Let me assure you that in the performance of my official duties and even my private acts will be guided and guarded by my Oath of Office, The Panunumpa ng Kawani ng Gobyerno, the Philippine Constitution and all the laws that govern our actions.”

- o0O0o –

You can access DepED Updates, latest issuances, photos and other relevant information through our website: http://www.deped.gov.ph and our Facebook Page: https://www.facebook.com/DepEd.Philippines/. For queries, complains and other concerns for the different schools divisions email them to davao.city@deped.gov.ph, davao. delsur@deped.gov.ph, davao.delnorte@deped.gov.ph, tagum.city@deped.gov. ph, panabo.city@deped.gov.ph, igacos@ deped.gov.ph, davao.oriental@deped.gov.ph, digos.city@deped.gov.ph, mati. city@deped.gov.ph and compostela.valley@deped.gov.ph.