Thursday, August 09, 2007 Groups relieved over tax hike delay
TRANSPORT operators in Cebu are happy that Malaca-ńang has deferred a 2,600 percent increase in the common carriers’ tax that was originally scheduled to take effect on Aug. 18.
Nicasio Villahermosa, president of the Cebu Provincial Bus Operators’ Association (CPBOA), said that government should be thankful that public transport operators persist despite the high cost of fuel, tires, batteries and spare parts.
“If a bus operator suffered losses due to the high cost of operation, he may be able to continue in the transport business only because his other businesses are making profits,” Villahermosa said.
He added: “If several operators were to stop plying their routes, who would serve the public, especially in the remote towns?”
The Bureau of Internal Revenue (BIR) was planning to increase the common carriers’ tax, which is three percent of estimated monthly gross receipts, but based on 1978 prices.
But in a resolution filed this week, Sen. Panfilo Lacson invoked the legislature’s oversight powers to review the BIR’s plan. He mentioned the need to balance the govern-ment’s efforts to curb the deficit and the protection of transport operators and commuters from an “undue burden.”
Julito Flores, president of the Cebu South Mini-Bus Operators’ Association, said they are paying a common carriers’ tax of P500 per unit per month, on top of income taxes.
“Instead of increasing taxes, the government must subsidize the transport industry so the operators will survive,” Flores said.
Increasing the common carriers’ tax and income taxes of transport operators may lead to another round of fare increases, he pointed out.
Richard Cabucos, chairman of the Metro Cebu Taxi Operators’ Association, said they are paying common carriers’ tax of P260 per unit per month.
“If the government will increase it by 2,600 percent, this will be a heavy burden on taxi operators,” Cabucos said. (EOB)
