Bus, taxi operators should pay taxes, too

Working together with the Land Transportation Franchising and Regulatory Board (LTFRB), the Bureau of Internal Revenue (BIR) is all set to implement tax rules on bus and taxi operators. This is something that is just, proper and about time. Transport operators have been getting away with tax free profits for so long now.

For starters, the BIR and the LTFRB will require taxi operators to use meters that will automatically issue receipts. This is already being used in many major world capitals. We saw this being used in Shanghai during a visit there last year. Not only will the receipt document the distance traveled and the fare charged so as to discourage overcharging, people who use taxis for official business can easily use the receipt for reimbursement.

BIR Commissioner Jojo Buñag told me last Tuesday that he is now working out the details with LTFRB Chairman Elena Bautista. Actually, this should have been implemented earlier but then BIR Chief Willy Parayno reportedly gave it a lower priority. This time, however, Jojo is determined to push this through. He needs all the tax money he can collect to meet the target given to him, and this is one very glaring tax leak.

I asked Jojo if they are able to collect taxes on the "boundary" collected by operators from their drivers and the answer is no. This is not right. These operators are terribly noisy complainers, even using the riding public as hostage to get what they want from government, yet pay no taxes on their income. These are hard times and everyone must carry his share of the burden.

Besides, as Jojo observed, while many are single- unit operators, a good number also live pretty good lives on the tax free "boundary" they collect from their drivers. Some even reside in exclusive gated villages. But they are basically still in the underground economy and evading their share of taxes. I am sure they will complain again that the new taximeters would cost them money and similar excuses. But that’s just part of the cost of doing business.

It was easier for the BIR to monitor income and collect taxes in the past when there were fairly large taxi companies like Golden and Yellow. Now, it is practically free for all. But the job of collecting taxes from the bus and taxi industries must be done. And Jojo vows to accomplish just that.
Oil price
Government officials should be careful when they open their mouths. Look what happened when one of them said they were thinking of exempting oil products from VAT. The reaction of the market was instantaneous. The peso lost traction and so did the stock market. They tried to qualify the earlier statement but the damage was done.

It was also not too bright for them to suggest cutting mall hours. That might save some electricity but the loss in jobs and business opportunities might be more substantial. Besides, lower electricity consumption is not going to help much in mitigating the effect of high oil prices. A large part of our electricity generation is now non-oil. They must also remember that since IPP contracts are on a take or pay basis, lower consumption means higher cost per kilowatt hour for the end consumer.

In terms of the national economy, I guess the large savings will have to be in transportation. Ban all those super SUVs. Stop the colorum buses that make the system less efficient. With the MRT on EDSA, there really isn’t that much demand for buses, which means LTFRB must cut down the number of franchises to operate on EDSA. Otherwise, the bus drivers just clog EDSA and drive dangerously to fight for the fewer passengers taking buses.

Saving on transport fuel means government must do something about those monstrous traffic jams. If they can really implement the staggered start of work hours, that might help alleviate traffic. But on EDSA, just getting the buses to behave should improve traffic flow immensely. That overpass on the Kalayaan/C5 intersection must be built quickly to address the traffic jam that goes all the way to the Ortigas/C5 intersection in the morning rush.

Eventually, we can introduce alternative fuels like ethanol. But that requires a long lead time and the short term impact is not going to be dramatic. Getting those CNG buses on the road should help too. At least, these buses would be using Malampaya natural gas. Those CNG buses should have been running by now. Expand the use of CNG to taxis. Government and Pilipinas Shell must quickly resolve the logistical problems that have plagued the project.

As for the four day work week for government workers, didn’t we find out the impact was minimal when it was tried last year? The truth is, there isn’t much that can be done to mitigate the impact of rising oil prices that’s within the powers of a country like ours can do. The most we can do is try to improve efficiency in its use so that the impact of a larger oil bill on our foreign reserves can be managed. Efficiency would also minimize the negative impact on our GDP.

The reality is, oil is an increasingly scarce, politically sensitive resource and the era of the hundred dollar barrel of oil is just around the corner. And contrary to the belief of the leftists and some jeepney drivers associations, we do not have a God-given right to cheap oil. We must pay world market prices like everyone else. No amount of rallying and striking will change that.

Malacañang is right. Let us just work together to address this problem or end up suffering the consequences.
Pre-need victims
The First National Assembly of Preneed Victims convenes tomorrow, Saturday, April 29 at the St. Paul, Pasig Gym. It is an effort to bring the various issues that confront many middle and lower class parents who bought pre-need education plans to public awareness. It will bring together the planholders of Pacific Plans, CAP, Platinum, TPG and Capitol.

Hopefully this would be the start of a concerted effort to make the government do something to address the very real needs of parents who are faced with the problems of paying the tuition fees of their children. It is very painful for a parent to have saved by contributing to a pre-need plan only to find out that there is no money when it is needed and as promised.

This is also no way to advance the country’s need to educate our people and encourage them to save by investing for their future in instruments issued by companies that are supposed to be more or less supervised by government regulatory agencies.

I understand that government is looking for ways to help out these parents. I just don’t understand what is taking them so long to come out with a rescue plan. The education of our youth is at stake.
Distinguishing feature
Here’s Dr. Ernie E.

"Oh James, I like your beard, but I would really love to see your handsome face," the girlfriend cooed to her lover.

James replied, "My wife loves this beard, I couldn’t possibly do it. She would kill me!"

"Oh, please?" the girlfriend asked again, in a sexy little voice.

"Oh really, I can’t," he replied.

"She loves it." The girlfriend asked once more, and he sighed and finally gave in.

That night, James crawled into bed with his wife while she was sleeping. The wife woke up and sleepily felt his face and said "Oh, Michael, you shouldn’t be here. My husband will be home soon."

Boo Chanco’s e-mail address is bchanco@gmail.com

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