Cabbies clamor for delay of tax imposition-A A +A
By JM Agreda
Saturday, October 27, 2012
TAXI operators and drivers are calling for the deferment of the three percent Common Carrier Tax (CCT) due for implementation this month.
Melanio Panayao Jr., president of the Samahan ng mga Taxi ng Cordillera in a letter to Bureau of Internal Revenue (BIR) commissioner Kim Jacinto-Henares called on the agency to defer the implementation and registration of the CCT based on meter grossed receipt.
“We are hoping the government and the BIR will still find a more equitable and suitable scheme of taxation adaptable to the taxi industry traditionally operating under the boundary system in Baguio and Cordilleras,” the group said.
The group also said the survivability of the taxi industry in the region will severely be af1fected by the implementation of the CCT claiming this will chip off a huge portion of their daily and monthly earnings and will also be an additional burden to the growing costs of operating in the transport industry such as fuel and spare part hikes.
They added their fares are lower compared to taxi operators in Metro Manila and other provinces.
They also emphasized imposing the CCT while it is not being enforced by other regions including Metro Manila will be unfair to their industry.
While it may be true taxi operators in the region do not pay the Value Added Tax, Panayo claimed, they are however not exempt from absorbing VAT from fuel and other commodities.
“The monthly sales invoice is not reflective of actual gross income because taxi transport group is not exempted granting of discounts to senior citizens and persons with disability. Hence, with the course of a one month transaction, the monthly gross receipt will not provide us with a true picture on what to tax because taxi meters are not programmed to deduct the 20 percent discount,” he said,
Other issues raised by the group include existing taxi meters with integrated printers unlike cash registers are not exempted from errors and tampering issues.
The taxi organization sought the help of the City Council Committee on Public Utilities and Transportation composed of Councilors Nicasio Aliping, Fred Bagbagen and Joel Alangsab who favorably endorsed and supported the clamor of cab operators to the BIR commissioner and other concerned agencies.
Published in the Sun.Star Baguio newspaper on October 27, 2012.