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    Palace eyes ‘graduated’ hike
    in PUV tax amid protests
     
    By Mia M. Gonzalez

    Reporter

    RESPONDING to lawmakers objecting to the huge Malacañang-ordered 2,600-percent increase in public-utility vehicle (PUV) taxes, the government—while not retreating from the target percentage increase—is considering imposing it gradually over several years.

    Transportation Secretary Leandro Mendoza said Tuesday the public-utility sector has “no objection per se” against it, only on how it is to be carried out. “Right now, they are discussing the manner of implementing this on a graduated basis. I believe there is no objection as far as the tax itself is concerned.”

    He added the “trend” of ongoing discussions with public transport groups is “there will be a smaller percentage that will be implemented, and the balance will be negotiated.”

    Senate Majority Leader Francisco Pangilinan said the planned tax hike is “arbitrary, unjust, whimsical, oppressive; it is everything that a tax law should not be.”

    As this developed, Party-list Rep. Crispin Beltran of Anakpawis filed a resolution calling on the House Committee on Ways and Means and the Committee on Transportation and Communications to conduct an immediate joint inquiry on the proposed hiked PUV tax.

    Beltran said the people must know “how the Department of Finance and the Bureau of Internal Revenue [BIR] decided on the percentage increase and how both agencies determined that taxi, jeepney, and bus operators and drivers will be able to pay the exorbitant new tax.”

    After warning of its potential domino effect on transport operators and commuters, Sen. Panfilo M. Lacson filed a resolution seeking a thorough Senate review of the plan.

    In Senate Resolution 58, Lacson invoked the oversight function of the Senate to review the BIR’s proposed tax hike on public-utility operators, with the aim of striking a balance between the concerns of the government and the transport sector.

    “The one who will ultimately bear the brunt of this tax hike are the riding public as this will undoubtedly result in fare increases and consequent rise in the price of basic commodities,” Lacson noted in his resolution.

    While the present taxes are indeed based on prices in 1978, imposing such a big increase so suddenly will pose an “undue burden” on operators already staggering under the burden of fuel, spare parts and even extortion by unscrupulous law enforcers, he said.

    Citing figures reaching his office, Lacson said the revenue regulation effectively increases the present tax on jeeps, taxis and buses by as much as 2,600 percent.  Operators of buses carrying 50 or more passengers may have to pay from the present P864 to P23,652.

    What is unconscionable, Lacson said, is that the planned increase was “arrived at hastily” just to meet the deficit target by the end of the year.  (With F. Marasigan)

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