LTFRB may approve maximum fare hikle of P1.26
As oil prices continue increasing, the government may approve a maximum fare hike of P1.26, a Land Transportation Franchising and Regulatory Board (LTFRB) official said on Tuesday.
"If were going to use the formula based of the Memorandum Circular released by the boardm, based on our computation, if were going to go back to the year-on-year increase, it will be at least 1.20 and a maximum of P1.26 centavos more or less," said Joel Bolano, LTFRB executive director, during the ''Laging Handa'' public briefing.
Bolano said the LTFRB will study the fare hike once a petition is filed by transport groups. Last Monday, Obet Martin of Pasang Masda said they will file a fare hike petition of P3.
"Actually as of today, we are waiting for the official position paper or petition for their request of fare adjustment in public transport," he said.
"In case it will be recieved by our office in LTFRB, this will be studied by our board, in coordination with the Department (of Transportation). Because we need to balance, we understand that we are still in pandemic and we understand that oil prices are increasing but we also have to look at the capacity of the passengers in this time of pandemic," he added.
In the same briefing, DOE Oil Industry Management Bureau Director Rino Abad explained that the government cannot suspend the excise tax without a law.
"Under the Section 43 of TRAIN Law, there is a provision that allow suspension (of excise tax). But the suspension is just limited from 2018, 2019 and 2020, including the three tranches of implementation of excise tax. That is the only time frame that the suspension of excise tax is allowed," he said.
"From 2020 onwards, there must be a law to suspend or repel for that matter and it is an issue of tax so it should come from the Lower House of the Congress," Abad noted.
"Before we can do that we really have to accord our Finance Department and the Budget Department with exhaustive consultations, not only the transport sector or oil sector, but to other sectors of the economy and our community, including the fund we specnt to fight COVID," he added. Robina Asido/DMS