AN OPERATOR of a modern public utility vehicle (MPUV) has sought the help of the Cebu City Council, specifically in relation to its business tax obligations, after it temporarily ceased operations last Oct. 1, 2023.
Persano Corp., a Cebu-based operator of MPUV Bagong Jeep (Beep), wrote to the council asking if there were any local ordinances granting relief or exemption to businesses in distress from the imposition of penalties or surcharge in connection with its business tax obligations to the City Government.
The letter signed by its president Edgar Jino Bartolata was sent to the council last Jan. 31, 2024.
The council tackled Persano Corp.’s concern during its regular session on Wednesday, Feb. 7.
“We write to apprise the honorable Sanggunian of the plight of Persano Corp., an operator of modern PUJ services and registered business enterprise in Cebu City, which is currently under distress,” reads a portion of the letter.
The management of Beep issued a memorandum on Sept. 22, 2023, about its decision to temporarily stop its operations starting Oct. 1 to avoid incurring more catastrophic losses.
The company underwent a six-month temporary work suspension, pending the approval of its request for relief from the Land Transportation Franchising and Regulatory Board (LTFRB).
Challenges
In a letter to the council, Bartolata said half of Persano Corp.’s fleet has become inoperative due to lack of spare parts that are impossible to obtain because of trade embargos imposed on Russia in relation to the ongoing the Russia-Ukraine war.
Persano Corp. has 20 gazelle units manufactured in Russia.
Bartolata said this challenge only exacerbated the company’s struggles experienced during Covid-19 pandemic when the modified routes implemented in Cebu had overlapped the routes of Persano, resulting in loss of route viability and operational deficits.
These routes included the Cebu City Hall to IT Park and Banawa to Panagdait.
In previous reports of SunStar Cebu, other reasons that have impacted the operations of Beep were the delay in granting its request for route or extension modifications, the ongoing Bus Rapid Transit construction that affected Beep Cebu’s route from Guadalupe to Carbon, and the losses it incurred as a result of the special permits given to other rival modern public utility jeepneys from Cebu City Hall to IT Park in Barangay Apas and from Banawa to Sitio Panagdait in Barangay Kasambagan.
The council referred the letter of Persano Corp. to its research division to check if there are any ordinances that provide tax exemption to businesses in distress.
After that, City Councilor James Anthony Cuenco, transportation committee chair, said the matter will also be endorsed to the committee on budget and finance and to the City Treasurer Office for their comments.
City Councilor Jocelyn Pesquera also referred the letter to the committee on laws to inquire if the City can grant an exemption on penalties or surcharges.
Officials projected that around 70,000 commuters, most of whom work in 36 business processing outsourcing companies at the Cebu IT Park in Barangay Lahug, have been affected by the stoppage of the Beep’s operations.
In previous reports, LTFRB 7 Director Eduardo Montealto Jr. said LTFRB allows a transport company to suspend the operation of up to five percent of its total units.
Persano Corp. has 58 MPUV units that ply routes under special permits from Cebu City Hall to Cebu IT Park; Banawa to Panagdait; Tabunok, Talisay City to Cebu IT Park; and Minglanilla to Cebu IT Park.