MANILA, Philippines — The Supreme Court, voting 13-1, has upheld the constitutionality of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, Republic Act No. 10963, effectively dismissing two petitions challenging the law's validity.
In a ruling released in January 2023, the high court's en banc session found no merit in the consolidated challenges against the tax reform measure, which was signed into law in December 2017. The petitions had questioned the legality of certain provisions, but the Court ruled that the law passed constitutional scrutiny.
The TRAIN Act, the Duterte administration's first package of tax reforms, lowered personal income tax rates while increasing excise taxes on fuel, sugar, and other goods. It was designed to generate revenue for the government's infrastructure and social programs, but faced criticism over its inflationary impact and alleged procedural irregularities in its passage.
The decision means the law remains fully in effect, providing legal certainty to its revenue-raising mechanisms. One justice dissented from the majority ruling, though the Court's 13-1 margin underscores strong judicial support for the legislation.
With the dismissal of both petitions, the Supreme Court has put to rest the constitutional questions surrounding the TRAIN Law, allowing the government to continue implementing its tax reform agenda without further legal impediment.