Fuel ex­cise tax may hike jeep fare to 112

Manila Bulletin - - Front Page -

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)

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.