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 He agreed that the 1978 base tax is outdated but the increase should have been gradual and should have been part of the Comprehensive Tax Reform Program.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

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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

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