This research focuses on how reducing import taxes changes prices and production in the Philippines. By looking at these changes through a big-picture economic model, the study can understand how this affects different families' incomes and well-being. The goal was to create a computer model specific to the Philippines to see how cuts in import taxes between 1994 and 2000 influenced household earnings and happiness over two ways: money and spending habits. The study used this method to follow how the tariff changes impacted people in the country.