BIR: Taxis must issue receipts to passengers

The Bureau of Internal Revenue (BIR) aims to raise P1.2 billion in additional revenues by requiring taxis to issue official receipts to passengers. BIR Commissioner Jose Mario Bunag said in a news conference on Wednesday there are currently 47,000 taxis that are registered with the Land Transportation Regulatory and Franchising Board (LTFRB). Bunag said the government is currently losing the same amount as taxi operators only remit the ceiling required under the National Internal Revenue Code (NIRC). Under the tax code, common carriers such as jeepneys, buses, and taxis are subject to percentage tax equivalent to 3 percent of their quarterly gross receipts. Taxis plying major routes in Metro Manila and other cities are required to pay 3 percent of their minimum quarterly gross income of P3,600 while those in the provinces are levied 3 percent of P2,400. "They (taxi operators) definitely make more than that but they are interpreting the law to their advantage," he stressed. Taxi operators earn between P600 to P1,200 a day in boundaries remitted by their drivers, according to government estimates. According to him, the BIR would be able to document the earnings of operators by requiring all taxis to use meters capable of issuing official receipts to passengers. The taxi-receipt system is part of the government's effort to protect commuters from abusive taxi drivers and to improve tax collection. Other countries such as Singapore require all taxis to issue official receipts to passengers. Bunag said the agency has already accredited four companies to supply taxi meters capable of issuing official receipts worth P15,000 each. Another company has filed an application. The implementation of the taxi-receipt system was scheduled next month but would again have to be delayed with the failed bidding for a computer linkage system that would provide the necessary network connectivity between the BIR and the LTFRB. - GMANews.TV