LTFRB to weigh effects of excise tax on fare hike petitions

THE LAND Transportation Franchising and Regulatory Board (LTFRB) said it will have to “find a balance” in deciding on petitions for fare increases which were filed with the impending increase in excise taxes on petroleum products due to the new tax reform package. Board Member Aileen Lourdes A. Lizada said the agency will conduct a technical study and consult the National Economic and Development Authority (NEDA) regarding the effect of the tax reform package on the prices of fuel as well as take-home pay to come up with a decision that is agreeable to both transport operators and passengers. It will also hear the sentiments of commuter groups. “We have to find a balance…We will have a hearing, and always the side of the commuters’ group. On the part of LTFRB, we would like to seek the assistance of NEDA. In all of these, what are the effects of the tax on the fuel, with corresponding increase in net take home pay, what is the fine balance, the one that LTFRB can substantiate, defend, and justify to the riding public, as well as acceptable to the riding public with services leveling up on the part of the TNVS,” Ms. Lizada told reporters on Tuesday. The earliest time the LTFRB will be able to come up with decisions on fare increases is March. Grab Philippines last week filed a petition for a 5% fare increase. The Philippine National Taxi Operators Association (PNTOA) filed a petition to hike its flag down rate to P50 from the current P40. Under the new tax reform package, excise taxes are estimated to increase by P2.50 per liter for diesel, and P7 per liter for gasoline. —