Roxas and Lacson Objects 2600% Tax Hike

Senators Manuel “Mar” Roxas II and Panfilo “Ping” Lacson, both opposition lawmakers, separately objected to the move of the Bureau of Internal Revenue (BIR) to implement a 2,600 percent increase in taxes for operators of buses, jeepneys, and taxis which will take effect on August 18, to make up for the shortfall in tax collection.

“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,” Roxas said. He plans to write the DOF on Monday to formally request for a copy of the government’s fiscal plan to meet revenue targets despite collection shortfalls. He also pointed out that public hearings are necessary before imposing a tax increase and 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.

Lacson furthermore described the BIR’s plan as “shortsighted and unconscionable*.” According to him, it is such a huge increase for transport operators. He agreed that the 1978 base tax is outdated but the increase should have been gradual and should have been part of the Comprehensive Tax Reform Program.

Lacson, meanwhile, said the planned tax hike shows the lack of vision and planning by both the Palace and the BIR.

“Mrs. Arroyo has been president for almost seven years. Is she saying she does not have forward planning? Why beat the taxes out of poor jeepney, taxi and bus operators who are already reeling from the high prices of fuel and spare parts?” he said.

Lacson said he will ask the Senate committee on ways and means and the oversight committee on tax reform to look into the matter.

* Unconscionability is a term used in contract law to describe a defense against the enforcement of a contract based on the presence of terms unfair to one party.

source: The Philippine Star