BIR Will Raise PUV tax by 2,600%

A 2,600% tax hike will be implemented by the Bureau of Internal Revenue (BIR) to Public Utility Vehicles (PUVs) which could lead jeepney, bus and taxi drivers to ask for increase in fare.

PUVs’ minimum gross quarterly receipts were still based on 1978 prices which according to the BIR are no longer reflective of the true value of the minimum gross receipts of public vehicles.

The updated amounts of tax liabilities were based on the updated minimum gross quarterly receipts as prescribed by the BIR.

For jeepneys in Metro Manila, the 2006 minimum gross quarterly receipts amount to P65,700 from only P2,400 previously.

For public buses, the minimum gross quarterly receipts would now amount to a range of P98,000 to P197,100 from only P3,600 to P7,200 previously.

For taxis in Metro Manila, the minimum gross quarterly receipts would now amount to a range of P65,700 to P98,600 from only P2,400 to P3,600 previously.

The BIR is stepping up efforts to meet its revenue target of P730 billion for 2007 and help the government trim the budget deficit to P63 billion this year.

source: abs-cbnnews.com