PUV operators request number coding exemptions, low interest loans from tax reform package
UNTV News • May 19, 2017 • 3654
MANILA — Several transport organizations call on the Duterte Administration and several lawmakers to save their sector from the possible negative impact of the passage of the Tax Reform Package Law.
The Jeepney and Bus operators are asking the government to give them subsidies and to ease the number coding scheme in their sector.
“If the law will be passed, we’re hoping to be part of the provision on excise tax so that our vehicles will also be protected,” said Alliance of Concerned Transport Organizations (ACTO) president, Efren de Luna.
According to Alex Yague, president of Provincial Bus Operators Association of the Philippines, “We have to make comprehensive the route rationalization, number 2, and lift the number coding immediately.”
Under the proposed law, the excise tax on diesel will reach to P6.00 per litre by 2020.
The law will be implemented in several tranches and will begin with a P3.00 tax in the middle of 2017.
This means that jeepney and bus fares might increase by 40 centavos in every P3.00 additional tax.
The Department of Finance (DOF) and Department of Transportation (DOTr) explains the PUV sector will benefit from the additional excise tax.
“The solution is the subsidy or the temporary cash transfer. The solution is to modernize the jeeps,” DOF Usec. Karl Chua said.
DOTr Asec. Mark De Leon said, “We are talking to government financing institutions so that we could provide low interest rate loans to Jeepney operators.”
The DOF estimates that with the implementation of the law, the government’s budget will increase to more than P500-billion in 2022 for the programs aiming to address poverty in the country.
The Finance Department continues to conduct consultations with various sectors to get their position on the tax reform package of the Duterte administration. — Nel Maribojoc | UNTV News & Rescue
MANILA, Philippines – Department of Finance (DOF) Secretary Carlos Dominguez III is proposing a “more proactive” and “targeted” investment promotion strategy to attract the kind of foreign investors that the government wants to relocate here as part of the efforts to restart the country’s economy.
In a statement, Dominguez said these investors may be offered a set of tax and non-tax incentives tailor-fit to their needs.
Dominguez said the government should discard its old “one-size-fits-all” incentives program and shift to a demand-driven approach where it identifies the types of industries that the economy needs to flourish.
He explained that these incentives can be granted based on the specific requirements of the industry players that the government wants to set up shop in the country.
“What we should be doing is identifying these industries and then going to each of the companies–each of the leading companies in those industries around the world—and asking them: what do you need for you to come to the Philippines? Instead of waiting for them to apply, we should be going to them and offering them a package,” Dominguez said during a virtual press briefing held on the sidelines of the recently concluded online “Sulong Pilipinas: Youth Partners for Progress” workshop.
“These industries include those that are labor-intensive and thus create stable, decent-paying jobs; provide excellent technology transfers that improve the skills of the country’s workforce; and have stable markets,” he added.
Dominguez said the “obsolete one-size-fits-all” formula of attracting prospective investors has “failed to make the Philippines an investment magnet, with the country persistently lagging behind its Southeast Asian counterparts in terms of the volume and amount of foreign direct investment (FDI) inflows despite being among the first economies in the region to offer fiscal incentives.”
He said the administration’s economic team and the Congress are now in the process of crafting a comprehensive stimulus program to revive the economy waylaid by the coronavirus disease 29019 (COVID-19) pandemic.
MANILA, Philippines – The Department of Transportation (DOTr) on Friday said it is working on forging partnerships with various digital payment providers for the implementation of cashless or contactless transactions in taxis and Transport Network Service Vehicles (TNVS) as part of the “new normal” amid the novel coronavirus disease (COVID-19) pandemic.
In a statement, the DOTr said it has tapped payment platforms to help equip taxis and TNVS with scan-to-pay systems to limit direct physical contact between drivers and passengers, thus further curbing the spread of COVID-19.
Taxis and Transport Network Companies (TNC) are allowed to operate in areas placed under general community quarantine at reduced capacity and with strict health and safety protocols.
“Cashless and contactless payment scheme will now be part of the ‘new normal’ in the public transportation system,” Transportation Secretary Arthur Tugade said.
The DOTr said one of the first to tie-up with the government for this purpose is GCash.
Under the partnership, GCash will help enable taxi drivers to accept digital payments through the Scan To Pay app where GCash users only need to scan the unique QR code of the taxi unit they are riding in paying for their metered fares.
GCash is also offering the GCash PowerPay+ solution to taxi operators where they can send out salaries, allowances, and commissions through to their employees, or members nationwide, the DOTr said.
“GCash strongly supports the government’s call for the use of mobile payments to lessen the risk of spreading COVID-19 through surfaces such as paper money,” GCash Head of Payments Jovit Bajar said.
Authorities are also in talks with other payment platforms PayMaya, Squidpay and Beep, among others, the Land Transportation Franchising and Regulatory Board (LTFRB) said in the same statement.
“We had consultations with these providers over the weekend. We are encouraging these digital payment providers to partner with taxi operators and TNCs to lessen the chance of COVID-19 spread,” LTFRB chairman Martin Delgra III said.
“On the part of the TNCs such as Hirna, Grab and Owto, they are already accepting cashless transactions,” he added.
MANILA, Philippines – Senator Panfilo Lacson on Tuesday expressed support for the proposal of the Department of Finance (DOF) to prioritize the hiring of contact tracers to boost the country’s efforts to curb the transmission of novel coronavirus disease (COVID-19).
“Contact tracing is a key first step in addressing the COVID-19 threat. It should provide the baseline data or reference on who to test. Without it, our mass testing will be like shooting at the moon or running around like headless chickens,” Lacson said in a statement.
In a briefing aired earlier in the day, Finance Secretary Carlos Dominguez III proposed to ramp up the government’s contact tracing efforts to boost efforts to stop the COVID-19 transmission and provide jobs to stimulate the economy through spending.
“Kung maipapatupad ang mungkahing ito nang maayos, maaari nating lutasin agad ang dalawang problema,” Lacson said.
The senator added that the proposal’s materialization will depend on the Department of Health.
“Ang bagay na ito ay nasa kamay na ng liderato ng Department of Health: Maiimplementa kaya nila ang mungkahi ni Secretary Dominguez?” he asked.
As of May 12, the Philippines has recorded 11,350 confirmed coronavirus cases, with 2,106 recovered patients and 751 fatalities.
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