Fuel excise tax may hike jeep fare to 112
If government makes good its plan to impose excise taxes of P6 on diesel and P10 on gasoline, the jeepney fare may soar to as high as P12 when diesel hits a pump price of P40 per liter.
Lawyer Vigor Mendoza, chairman of the Kilusan sa Pagbabago ng Industriya ng Transportasyon (KAPIT) said they may be forced to ask for at least a P5-hike in the current P7 jeep fare when the Department of Finance (DOF) implements the additional tax on fuel products.
“If this happens, we will ask for an increase in fares, increase in profit. Our computation for that, at least for Metro Manila, the minimum fare should be at least P12 when (diesel) hits P40 per liter,” he said.
Currently, diesel costs about P32 per liter, which according to Mendoza is already a mismatch to the current base fare.
“The P7 fare was actually
based on 120-per-liter cost of diesel,” he lamented.
The transport group leader also scored the government for not consulting their sector in proposing additional taxes on fuel products on top of the 12percent value-added tax (VAT) to generate 1180 billion in revenues a year.
“There had been a lot of discussions but we, in the transport sector, were not consulted,” he said.
Zeny Maranan of the Federation of Jeepney Operators and Drivers Association of the Philippines (FEJODAP) also feared that the additional taxes might have a “domino effect” and raise the price of goods and necessities, too.
“To President Duterte, we appeal that you don’t allow this move because ordinary Filipinos would suffer,” she said.
“We believe that the government needs to raise revenues but there might be other means, those that couldn’t harm ordinary Filipinos,” Mendoza added. (Vanne Elaine P. Terrazola)