By JOCELYN MONTEMAYOR and RAYMOND AFRICA
The government would provide P1 billion in cash grants to 178,000 drivers of public utility vehicles (PUVs) but is firm on its stand not to increase fares.
Government also has reservations on the proposal to suspend taxes on fuel.
The Department of Budget and Management (DBM) said the provision of the cash grant was approved by the members of the Development Budget Coordination Committee (DBCC).
This is so far the only measure approved in response to calls for financial relief for consumers from rising fuel prices.
Secretary Alfonso Cusi of the Department of Energy (DOE) has proposed his department be given authority to suspend the excise tax.
But the Department of Finance has expressed reservation on the proposal as it could affect the government’s COVID-19 recovery budget.
Officials warned it could lead to P131.4 billion of revenue loss in 2022.
Cusi had said suspending the excise tax could lower fuel prices by P8 to P10.
Antonette Tionko, DOF undersecretary, in an October 20 memorandum said the only possible way that the DOE may be granted powers to suspend is through legislative means.
“The power of taxation is vested in congress and absent any law, the DOE, the DOF, or any other agency of the government has no power to suspend the imposition of excise taxes,”Tionko said.
The subsidy, which shall be released by the Land Transportation Franchising and Regulatory Board (LTFRB) to the PUV drivers using the Pantawid Pasada Program system, covers the remaining months of the year.
It will be sourced from the unprogrammed appropriations under the Support for Infrastructure Projects and Social Programs of the 2021 budget.
Presidential spokesman Harry Roque said concerned government agencies are discussing ways to ease the burden of the rising prices of oil and fuel products on the PUV drivers and operators including their call to suspend fuel excise tax and provide fuel subsidies.
“This is being discussed. Both proposals are being considered. Government is heeding and we are evaluating,” Roque said.
But Secretary Arthur Tugade of the Department of Transportation (DOTr) said a fare increase will add burden to consumers amid the pandemic.
Transport groups are asking for a P3 fare hike, from P9 to P12.
“The department’s position, and that of the LTFRB is no fare hike. It is better if we explore other means (to cushion the impact),” Tugade told the Senate finance committee hearing the agency’s proposed P150.7- billion budget for next year.
LTFRB chairman Martin Delgra said the agency is also opposed to a fare increase at this time even if the year-to-date aggregate increase has surpassed P20 per liter, based on the monitoring report of the DOE.
Mark Steven Pastor, DOTr assistant secretary for road transport and infrastructure, said they have submitted a letter to the Inter Agency Task Force on the Management of Emerging Diseases Friday last week seeking to increase the seating capacity of PUVs to cushion the effects of the oil price increases.
PUVs are currently operating at 50 percent capacity.
Meanwhile, the LTFRB said in a statement it has disbursed more than P4.7 billion payout and incentives for the drivers and operators who joined the government service contracting program.
LTFRB said of the total payout and incentives, P4.19 billion was disbursed under the service contracting program phase 1, P1.9 billion as of June this year and P2.29 billion from September 13 to Oct. 23, 2021.
Under the service contracting program phase II which funded through General Appropriations Act , total disbursement stood P539.7 million as payout and incentives for the period of September 13 to October 23, 2021.
To date, LTFRB said the number of riders benefit from the Libreng Sakay program has reached 53.2 million. These include medical frontliners, authorized persons outside of residence and other essential workers. (with Reuters, Angela Celis and Myla Iglesias)
