No receipt, no taxi fare hike–LTFRB

First posted 11:11pm (Mla time) Nov 25, 2005
By Clarissa Batino
Inquirer News Service

Starting next year, TAXI drivers should start issuing receipts to their passengers in line with a two-year-old regulation that had already been deferred several times.

If they do not comply with the law, they would not be allowed to raise their fare even if the Land Transportation Franchising and Regulatory Board (LTFRB) approves a petition to hike the taxi flag down rate by P15. Based on the circular issued by the agency last week, all taxi cabs would have to change their meters into one that can print out receipts. “If they will not comply, then we will not calibrate their meter. Then they won’t be entitled to any fare adjustment,” said LTFRB Chair Maria Elena Bautista.

Taxi operators also face penalties. Those who fail to comply with the order would be fined P1,000. Repeated violations could result in the suspension or revocation of their permit. First time offenders would be fined P1,000 and P3,000 for the second violation. The LTFRB warned that it would cancel the franchiseon the third offense.

Taxi groups have a pending petition to increase flag down rates to P45 from the current rate of P30. The flag down applies to the fare for the first 500 meters. The LTFRB first issued the circular requiring taxis to issue receipts in 2003, but the implementation had been deferred several times. Bautista said it would no longer put off the order.

Taxi groups, however, are opposed to the policy and have asked the Department of Transportation and Communication to order the LTFRB to postpone its implementation. A new meter costs between P7,000 and P8,000 and has to be registered with the Bureau of Internal Revenue.

Once the meters are changed and registered with the BIR, the government could strictly impose a 3-percent gross receipts tax on taxi operators estimated to generate an additional P2.2 billion in collections yearly. According to the bureau, the government collects a small amount of taxes from the transport sector, including taxis whose operators pay a quarterly gross receipt of only 3 percent based on the minimum amount of P3,600. In a year, each taxi unit pays less than P500 in gross receipts tax.

Philippine National Taxi Owner Association President Bong Suntay said he was hopeful the DOTC would settle the issue but his group might also take the matter to court. Leonora Naval, president of the Association of Taxi Operators of Metro Manila, said the government should not base its taxes on the meter receipts. The government said the new taxi metering system would help get rid of units that operate illegally, improve taxi service and enable commuters to use the receipts for reimbursement.

Under the LTFRB circular, the receipt should state the taxi’s name, address, telephone number, tax identification number, plate number, color-coded body number, date and time when the passenger embarks and disembarks, distance, waiting time and amount of fare in pesos.