Solon says P1-B aid to PUV drivers too small

Marikina City Representative Stella Quimbo on Monday said the P1 billion cash assistance to drivers of public utility vehicles amid the rising prices of fuel products was too small.

"Ang sinasabi ninyo na P1 billion, napakaliit po noon, sobrang bitin. Tinanong ko kayo magkano dapat, ni hindi ninyo po alam. So number two, paano natin magagawa 'yan nang mabilis," Quimbo raised during the briefing of the House committee on ways and means on the monitoring of fuel products.

(The P1 billion was too small. I have asked you how much but you didn't even know. Next is how will we distribute that in the fastest way possible.)

"Kaya nga kami nagre-resort to let's just suspend the collection of the tax because pasensya na po, DOF (Department of Finance), natra-trauma kami sa sobrang kabagalan ng pagbigay ng ayuda," she added.

(That's why we are just resorting to suspending the collection of tax because, sorry to the DOF, but we are already traumatized by the slow distribution of assistance.)

There have been bills and resolutions filed before the lower chamber calling for the suspension or reduction of the excise tax on fuel products to ease the burden of drivers affected by the increasing prices of fuel products.

The Development Budget Coordination Committee (DBCC) has said it will release P1 billion to the Land Transportation Franchising and Regulatory Board (LTFRB) for cash grants to PUV drivers.

The amount is expected to cover 178,000 PUV drivers for the remaining months of the year, which will be distributed using the system established under the Pantawid Pasada Program.

DOF director Euvimil Nina Asuncion clarified that the same number was used by LTFRB during its previous distribution of assistance to public transport drivers.

"This is actually the number used by the LTFRB when they distributed subsidies in May of this year so we just used the same number. This number includes PUV public utility buses, point-to-point buses, public utility jeepneys, mini buses, UV Express," Asuncion said.

The LTFRB had said it was looking into the possibility of a second phase of its cash and fuel subsidy programs for public utility vehicles to help those affected by the increase of prices of petroleum products.

Meanwhile, a technical working group will be created to craft the panel’s substitute bill reducing fuel excise taxes imposed under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, based on Albay Representative and panel chairperson Joey Salceda's House Bill No. 10348.

His bill is pushing for the reduction on the excise tax of fuel products from December 1, 2021 to June 1, 2022.

Salceda tasked the TWG to differentiate rates between premium and unleaded gasoline, given the use of unleaded gasoline by the public transport sector.

“This is immediate relief. I am skeptical of targeted measures when the situation is dire because they tend to take time, and many fall through the cracks. A universal approach gets the job of easing suffering done quickly,” Salceda said.

The DOF said Salceda’s proposal will result in foregone revenues of P37.5 billion, which, according to the Bicolano lawmaker, can be offset in part by increases in VAT collection due to higher prices. —AOL/KG, GMA News