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Wednesday, August 08, 2007
Oro transport group warns of strike
By Stephen Capillas
* Trafeco says PUV tax hike to force new fare rates
CAGAYAN DE ORO -- A local transport group in Cagayan de Oro warned they will stage another transport strike if the National Government pursues its plan to increase taxes on public utility vehicles (PUVs) sometime soon.
In a radio interview, Transport Federation of Cagayan de Oro (Trafeco) president Virgilio Valmoria said the option will be considered once their affiliated chapters fail to convince transport agencies to reconsider this move.
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The City Council committee on public utilities said they will consider holding a meeting with local transport representatives concerning this proposed increase on PUV taxes.
The Palace said Tuesday the planned increase on taxes imposed on PUVs "would be gradual."
Press Secretary Ignacio Bunye said there is an ongoing dialogue between government officials and representatives of the transport sector with Transportation and Communications Secretary Leandro Mendoza, during the first Legislative-Executive Development Advisory Council (Ledac) meeting in Malacañang.
Bunye said the dialogues started way before the announcement of the imposition of taxes on the operators of public buses, jeepneys, and taxis.
"Secretary Mendoza said this is not a new tax, this is a tax which has been there but was never implemented. It's a tax on common carriers. The dialogue is continuing and right now they're discussing the manner of implementing this on a graduated level," he added.
'Out of understanding'
Bunye said Mendoza did not mention any date when the common carrier tax would be imposed as "talks are ongoing to fine-tune the implementation."
But in an interview over dxIF, Valmoria said the increase in PUV taxes is unjustified especially in Cagayan de Oro where PUVs have refrained from increasing fare rates despite oil price hikes.
At the moment, passenger jeepney fares are placed at P6.00.
Despite this, Valmoria said the public transport sector here in the city and province managed to resist the increase fare rates "out of understanding" to the commuters whom he said are already burdened by increased bills and high prices in commodities.
"But this planned increase of PUV taxes is too much, we will be forced to increase our fare rates and this is not what we want. If the National Government insists on that, we will be forced to stage a transport strike," Valmoria said.
Councilor Ian Mark Nacaya chairman public utilities committee agrees saying the committee will hold a hearing on this matter.
"We have to convey to the National Government the city's opposition to this because it would unduly burden the operators, drivers and the riding public," Nacaya said in Visayan.
Review
Under the Bureau of Internal Revenue (BIR) Regulation 9-2007 the 2,6000 percent increase in the minimum monthly and quarterly gross receipts tax for common carriers and keepers of garages would be implemented starting August 18.
The BIR said current taxes paid by the PUV operators were based on 1978 prices and the increase is appropriate and even took into account the inflation and general rise in prices from 1978 to 2006.
The transport sector threatened to seek a P10 hike in fares while lawmakers questioned the increase, branding it as "too much" and that it may end up being passed on to the commuters.
Senators Manuel Roxas III and Panfilo Lacson said the BIR must first improve its tax collection system before imposing additional taxes in a bid to raise its revenues and make up for its shortfalls of the past months.
Senate Majority Leader Francis Pangilinan, in an ambush interview after the Ledac, said the implementation should be withheld until a review of the tax is completed.
Under the new tax regulations, jeepney operators in Manila and other cities that are now paying an annual tax of P288 will begin paying P7,884, while provincial jeepney operators who is now paying P144 will begin paying P3,948.
Bus operators who are currently paying P432 to P864 annually, depending on the bus size, would be paying P11,832 to P23,652.
Metro Manila taxi operators who is now paying P432 annually will begin to pay P11,832 while provincial taxi operators who now pay P288 annually will begin paying P7,884. (With a report from Sunnex)
For more Philippine news, visit Sun.Star Bacolod. (August 8, 2007 issue)
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