Press Release
August 7, 2007

KIKO CALLS ON BIR TO REVOKE 2,600%
INCREASE IN TAXES WITHIN THE MONTH

"Under the existing National Internal Revenue Code, operators of public land transportation are required to pay a common carriers tax equivalent to only 3% of gross receipts. While it is true that the assumption of the existing Common Carriers Tax is based on 1978 prices, the sudden increase from 3% to 2,600% is unwarranted and deplorable."

"We understand that there is an urgent need to raise revenues, but I think that we have a bigger problem with tax collections and running after tax evaders. A 2,600% increase is so high and disproportionate to the costs of the service that it performs, that it is clearly confiscatory in nature and therefore unconstitutional. BIR's Regulation 9-2007 is an order for erroneous and oppressive taxation. It is a violation of Article III, Section 1 of the Philippine Constitution."

"The plan of BIR is definitely a deprivation of property without due process of the law. The BIR can show their resolve to raise revenues without having to remove the income of millions of people in the transportation sector. It should focus its energies instead on tax collection and correctly charging excise tax, or on products like alcohol and cigarettes. It is oppressive and unjust and should not be implemented. The order should be revoked immediately."

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