ABRUPT HIKE IN TAX ON PUV OPERATORS UNFAIR - ROXAS

Senator Mar Roxas urged the Department of Finance to refrain from raising taxes until it has shown the public that it has exhausted all means to improve tax administration efficiency.

Roxas issued his call in reaction to BIR Revenue Regulations No. 9-2007 that would increase the minimum monthly and quarterly gross receipts tax for common carriers and keepers of garages by 2,600%, set to take effect on August 18.

"Ano ba talaga ang plano ? Noong una sabi ng DoF balak daw nilang magpataw ng bagong tax sa toll fees, at may nagpalutang din na tax on text messages. Ngayon naman may order na ang BIR na itaas ang tax ng mga bus, jeepney at taxi operators. Sana ilatag ng DoF ang kabuuan ng kanilang plano para hindi tayo nabubulaga tuwing may announcements sila katulad nito," Roxas added.

"I would like to point out that public hearings before imposition of a tax increase are necessary. Did the DoF and BIR even consult the Transport and Labor departments about the repercussions of this new order?"

"And what happened to earlier pronouncements from the executive branch that there is no need to raise taxes for now?" Roxas said.

Following the new regulations, jeepney operators in Manila and other cities, now paying P288 annually, will begin paying P7,884; provincial jeepney operators who now pay P144 will begin paying P3,948; bus operators who now pay from P432 to P864 annually depending on the bus size will begin paying from P11,832 to P23,652; Metro Manila taxi operators who now pay P432 annually will begin paying P11,832; provincial taxi operators who now pay P288 annually will begin paying P7,884.

"It seems unfair to abruptly increase the minimum monthly and quarterly gross receipts tax for PUV operators when the transport sector is beset with its own set of problems," the senator said, citing the high cost of spare parts and fuel.

The BIR had justified the rate hike by claiming the taxes presently paid by the bus, jeepney and taxi operators were still based on 1978 prices. However, Roxas said the BIR should explain how they intend to monitor actual gross receipts with the same efficiency and accuracy, as they are capable of for all other taxes.

The senator said he would write the DoF on Monday to formally request for a copy of the government's fiscal plan to meet revenue targets despite collection shortfalls. "I hope that they give in to my request which is in accord with the people's right to information," Roxas stressed.

"An abrupt increase in taxes for PUV operators, at a time of shrinking household budgets, stagnant incomes and high fuel costs, will hit the transport sector in the gut. I urge the government to carefully study the chain effect that such a tax increase may have not just on PUV owners and drivers but also on commuters," he said.