New taximeter means 3% tax-A A +A
Thursday, February 3, 2011
TAXI operators using the new receipt-issuing meters are now required to declare their monthly gross receipts.
The Bureau of Internal Revenue (BIR) set the requirement and will collect three percent, not 10 percent as earlier reported, from the taxi operators based on the gross receipts.
“This is the reason we urge passengers to demand a receipt from the taxi driver. If the driver refuses, the passenger can report the matter to us and we will investigate,” Bell Suelto Jr., head of the BIR 13 taxpayers’ information division, said.
Richard Cabucos, owner of Richelda Taxi and president of the Metro Cebu Taxi Operators (MCTOA), had said that they pay the BIR P250 per unit per month whether or not the unit is running.
Suelto said this practice is now corrected with the issuance of fare receipts.
There is now basis for the BIR to get the gross receipts and compute the three percent tax.
“The operators cannot pass on the percentage tax to the drivers because the operators are the ones in business,” he said.
Their failure to declare the correct gross sales is tantamount to tax evasion, Suelto said.
The flagdown rate of taxicabs using the receipt-issuing meters is P40 for the first 500 meters and succeeding distance is set at P3.50 for every 250 meters.
The old meters have a flagdown rate of P30 and succeeding distance is set at P2.50.
Published in the Sun.Star Cebu newspaper on February 03, 2011.