The Philippine Online Chronicles

Toll rates increased by 12 percent today after the implementation of the 12 percent value-added tax (VAT) on privately-run highways.

In August, the Supreme Court ruled in favor of the Bureau of Internal Revenue’s (BIR) Memorandum Circular No. 39-2011 which orders the collection of VAT on toll collections.

According to Inquirer, toll rates will increase for the North Luzon Expressway (NLEx), the South Luzon Expressway (SLEx), Subic-Clark-Tarlac Expressway (SCTEx), Metro Manila Skyway, Southern Tagalog Arterial Road (Star Toll) and the Manila-Cavite Toll Expressway (Coastal Road).

For SLEx, a passenger bus plying the Magallanes-Calamba route will pay an additional 83 centavos for each kilometer. Toll will increase from P195 to P218 for class 1 vehicles traveling from Balintawak to Sta. Ines along NLEx while SCTEx toll from Tipo Tarlac will increase from P243 to P272.

Protests

Earlier, Bagong Alyansang Makabayan secretary general Renato Reyes Jr. said, “A large part of Luzon is reeling from the devastating effects of typhoon Pedring. Another typhoon has also entered the Philippines. The VAT on toll on October 1 will only add to the misery of the people. The Aquino government has the power not to push through with the October 1 implementation of the VAT on toll.”

Meanwhile, activist groups held a “planking” protest near SLEx today to protest the increase in toll rates because of VAT. The Metropolitan Manila Development Authority tweeted that at least 50 people joined the planking protest.

The National Council for Commuter Protection also organized a prayer vigil at St. Jude Parish in San Miguel, Manila with the Provincial Bus Operators Association of the Philippines and the South Luzon Bus Operators Association (SOLUBOA).

The SOLUBOA earlier staged a motorcade-rally along the expressways to oppose the measure that will reportedly lead to an increase in transportation fares and prices of commodities.

On the other hand, deputy presidential spokesperson Abigail Valte said that the effect of the toll increase will be minimal on goods and services.

“This is our commitment. According to our computations, the impact on goods and services will be minimal and we will be watching those increasing their prices beyond computations we have set," she told media. She added that the Department on Trade and Industry will be monitoring prices.

Nevertheless, BAYAN asserted that, “Malacanang does not need the VAT on toll fees. There is no compelling reason to rush the implementation of this proposal. Government in fact already is projected to have windfall revenues arising from the VAT on oil to the tune of P70 billion this year. Yet its appetite for revenues squeezed from the people seems insatiable. VAT has become the most convenient form of raising revenues because it is not as difficult as other important revenue measures such as plugging tax leaks.”

Transport group Piston (Pagkakaisa ng Samahan ng mga Tsuper at Operator Nationwide) also called on President Aquino “to suspend the collection of the VAT especially since many of our countrymen were affected by Pedring. It would be insensitive of the government especially the BIR to insist on collecting the VAT.”

Piston secretary general George San Mateo also pointed out that Congress is currently proposing bills to exempt toll fees from VAT collection.