BIR hikes PUV tax by 2,600%

The Bureau of Internal Revenue (BIR) will raise the tax rates paid by operators of public utility vehicles (PUVs) by at least 2,600 percent, a move that could lead jeepney, bus and taxi drivers to seek fare increases.

In a revenue regulation set to take effect this month, the BIR has updated the minimum gross quarterly receipts to be used by operators of public utility vehicles in computing their so-called common carriers’ tax, which is three percent of gross income.

The BIR said there was a need to change the minimum gross quarterly receipts, which were still based on 1978 prices, as these are no longer reflective of the true value of the minimum gross receipts of public vehicles.

Under the present system, which has not been updated since 1978, jeepneys in Metro Manila pay P288 in taxes yearly. With the revenue regulation, they will now be paying P7,884 or an increase of 2,637 percent.

Bus operators’ tax liabilities range from P432 to P864 under the old system, depending on the size of the bus. This would now increase to a range of P11,832 to P23,652 every year.

Taxi operators in Metro Manila, meanwhile, will now be paying P11,832 yearly from the previous P432, while provincial taxis will be paying P7,884 from P864 previously.

The updated amounts of tax liabilities were based on the updated minimum gross quarterly receipts as prescribed by the BIR.

For jeepneys in Metro Manila, the 2006 minimum gross quarterly receipts amount to P65,700 from only P2,400 previously.

For public buses, the minimum gross quarterly receipts would now amount to a range of P98,000 to P197,100 from only P3,600 to P7,200 previously.

For taxis in Metro Manila, the minimum gross quarterly receipts would now amount to a range of P65,700 to P98,600 from only P2,400 to P3,600 previously.

Finance Secretary Margarito Teves said in the revenue regulation order that the average consumer price index has increased to P174.6 from P6.38 in 1978 when the minimum gross receipts of domestic land carriers were first established. Inflation averaged to P100 in 2000 that is being considered as international base year.

The BIR is stepping up efforts to meet its revenue target of P730 billion for 2007 and help the government trim the budget deficit to P63 billion this year.