FINANCIAL ECONOMICS
EXERCISES ON TRAIN LAW
1st Semester, S.Y. 2024-2025
NAME: _______________________________________ SCORE: _________________
YEAR/COURSE: _______________________________ DATE: __________________
Problem Solving: Read each item and solve what is being asked about TRAIN Law. Show your complete solutions.
Question 1:
Maria is a single taxpayer earning Php 50,000 a month. Under the TRAIN Law, what is her annual income tax?
Question 2:
The TRAIN Law increases the excise tax on gasoline. If the price of gasoline is Php 60 per liter and the excise tax is Php 10 per
liter, what is the new total price per liter of gasoline?
Question 3:
A person who earns Php 400,000 annually falls under the second income tax bracket of the TRAIN Law. How much tax will this
person pay?
Question 4:
Under the TRAIN Law, the VAT exemption for senior citizens is retained. If a senior citizen purchases items worth Php 2,000 and
the VAT rate is 12%, how much is their VAT exemption?
Question 5:
If the excise tax rate on automobiles is 4%, how much will the excise tax be for an imported car with a value of Php 500,000?
Question 6:
A business owner in the Philippines imports an item worth Php 100,000. The excise tax is 10%. How much excise tax does the
business owner need to pay?
Question 7:
If a taxpayer earns Php 300,000 annually and is a single filer under the new tax brackets of the TRAIN Law, what is their tax due?
Question 8:
A middle-class worker earning Php 300,000 yearly qualifies for a tax deduction under the TRAIN Law. How much tax does the
worker pay annually?
Question 9:
If a taxpayer’s taxable income is Php 500,000 and they fall under the new tax rate of 20% (after the Php 250,000 exemption), how
much income tax will they pay?
Question 10:
Under the TRAIN Law, if an individual purchases a non-essential item worth Php 10,000, how much excise tax will be levied if the
rate is 12%?
Question 11:
A consumer bought a car worth Php 1,000,000. How much excise tax will be levied if the tax rate for cars worth Php 600,000 or
more is 20%?
Question 12:
Under the TRAIN Law, a person’s income is Php 700,000. How much income tax will they pay if they fall under the tax bracket for
Php 600,000 to Php 1,000,000?
Question 13:
A family of 4 has an annual income of Php 900,000. What is their total tax due, considering the tax brackets under the TRAIN Law?
Question 14:
A senior citizen buys groceries worth Php 1,500. How much VAT exemption will they receive under the TRAIN Law?
Question 15:
How much is the excise tax for a pack of cigarettes under the TRAIN Law if the tax rate is Php 40 per pack?
Question 16:
A corporation imports a vehicle worth Php 800,000. If the excise tax is 4% for this type of vehicle, how much excise tax does the
corporation need to pay?
Question 17:
A taxpayer with a monthly income of Php 100,000 claims Php 20,000 worth of deductions under the TRAIN Law. What is the
taxable income?
Question 18:
A family of 5 earns Php 1,200,000 annually. What is their total tax due according to the TRAIN Law?
Question 19:
Under the TRAIN Law, a worker who earns Php 250,000 annually is exempt from income tax. How much will this worker pay in
taxes?
Question 20:
A company sells a car for Php 700,000. How much is the excise tax if the tax rate is 4% for this price range?
ANSWER KEY:
1. B) Php 45,000
2. B) Php 65
3. B) Php 22,000
4. B) Php 240
5. C) Php 20,000
6. B) Php 10,000
7. A) Php 12,500
8. C) Php 12,500
9. B) Php 50,000
10. A) Php 1,200
11. B) Php 200,000
12. A) Php 70,000
13. A) Php 65,000
14. C) Php 120
15. C) Php 40
16. A) Php 32,000
17. A) Php 960,000
18. C) Php 120,000
19. D) Php 0
20. A) Php 20,000
