More senators reject MRT, LRT fare hike

MANILA, Philippines - A majority of senators now support the deferral of the implementation of fare increase in the Light Rail Transit (LRT) and the Metro Rail Transit (MRT) and the imposition of 12 percent value-added tax (VAT) on the use of the North and South Luzon Expressways.

Sen. Miriam Defensor-Santiago and Minority Leader Alan Cayetano have joined 11 others in supporting Senate Resolution 602 urging the Palace economic team to reconsider its decision to raise train fares and impose the 12-percent VAT on the use of the major highways.

“This is the sense of the Senate,” said Sen. Manuel Villar Jr., one of the authors of the resolution along with Senators Ralph Recto and Joker Arroyo.

Other senators who supported the resolution are Senate President Juan Ponce Enrile, Senate President Pro-Tempore Jinggoy Estrada, Majority Leader Vicente Sotto III, Francis Escudero, Gregorio Honasan, Loren Legarda, Ferdinand Marcos Jr. and Antonio Trillanes IV.

Villar, chairman of the Senate committee on trade and commerce, said the LRT and MRT management should first strive to provide better service before pushing for a fare hike. 

“Sa aking paniniwala, hindi pa napapanahon at ang dapat sana na una munang gawin ng mga nag-ooperate ng LRT ay magbigay muna ng pamamaraan para magtipid at makababa ng cost ng kanilang operasyon (I believe this is not yet the right time; the LRT management should first explore ways to lower operation costs),” he said.

He does not agree with government economic managers who are pushing for the withdrawal of government subsidy to the train lines.

Finance committee chairman Sen. Franklin Drilon said, however, that the government has to implement the fare hike and impose the 12-percent VAT on toll to address the budget deficit.

“Kailan ba hindi naghirap ang taongbayan? (Since when did the masses not experience hardships?)” he said in response to arguments that the proposed fare and toll hike will become a burden to the public.

He explained that the government has two ways to reduce the deficit: increase taxes and maintain the subsidy at its current level, or reduce the subsidy and maintain the present tax rates.

“You have only one economic pie to distribute. How big that pie is the determining factor,” Drilon said.

Transport group Pinagkaisahang Samahan ng Tsuper at Operator Nationwide (Piston) recently held a metro-wide transport strike to protest the unabated rise in fuel prices and to push for the removal of VAT on oil.

Presidential spokesman Edwin Lacierda said the repeal of the imposition of VAT on oil should be decided on by Congress because it is a law. – With Aurea Calica