Finance Secretary Benjamin E. Diokno welcomed the decision of the Supreme Court affirming the constitutionality of the Tax Reform for Acceleration and Inclusion (TRAIN) Act amid petitions claiming the law to be “anti-poor” and unlawful.

The Supreme Court dismissed the petitioners’ “anti-poor” argument on the grounds of being largely hypothetical and lacking sufficient proof. The high court likewise stressed that the imposition of regressive taxes is not prohibited by the Constitution.

“The implementation of the TRAIN Act provided significant relief to taxpayers while generating necessary revenues that fund the country’s infrastructure projects and other priority programs,” Diokno said in a statement.

The TRAIN Act, or Republic Act 10963, is the first package of the previous administration’s Comprehensive Tax Reform Program (CTRP), which aims to make the country’s tax system simpler, fairer, and more efficient.

Furthermore, the program aids in revenue generation which is necessary for addressing poverty and improving the economy.

“Game-changing tax reforms such as the TRAIN and CREATE Act, paved the way for our country’s continued economic growth and fiscal sustainability,” Diokno said.

The DOF is pursuing the passage of the remaining packages of the CTRP that are currently pending in Congress.

These are bills that seek to modernize real property valuation and assessment, and simplify the taxation of passive income and financial intermediaries.

“The ruling upholding the constitutionality of the TRAIN Law demonstrates the Court’s commitment to upholding its usual respect for the primacy of Congress in enacting tax legislation,” Albay 2nd district Rep. Joey Salceda said.

Salceda, an economist, chairs the House ways and means panel.

“The ruling affirms that, indeed, Congress is where tax law is written. That strengthens the hand of the House Committee on Ways and Means to continue its policy reform and tax oversight efforts,” he noted.