Uber Philippines seeks fare hike, citing tax reform law

Chrisee Dela Paz

This is AI generated summarization, which may have errors. For context, always refer to the full article.

Uber Philippines seeks fare hike, citing tax reform law
(UPDATED) From the current P5.70 fare per kilometer for UberX, the ride-hailing service firm proposes to increase it to P9 to P12, depending on the time of the day

MANILA, Philippines (UPDATED) – Uber Philippines on Thursday, January 25, submitted a petition to the Land Transportation Franchising and Regulatory Board (LTFRB) for a fare hike due to increasing fuel prices and new excise taxes on petroleum.

Under the petition, the proposed fare per kilometer for UberX will be P9-P12, depending on the time of the day, up from the current P5.70. Uber said the base fare of P40 and time charge of P2 will remain the same.

“The costs that driver partners have to bear to mainain their vehicles is projected to increase due to several factors, including requirements under the Omnibus Franchising Guidelines (OFG), increasing fuel prices, and new excise taxes on petroleum,” the ride-hailing service app said in a statement.

Last January 5, Grab Philippines also asked the LTFRB for a 5% fare increase, citing the impact of the new tax reform law on its operations. 

From the current P10-P14 per kilometer charge, Grab seeks LTFRC’s approval to increase its fare to P11 to P15 per kilometer. It also wants to increase its time charge to P2.10, from the current P2. 

These developments come on the heels of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which took effect on January 1. The law brings down income tax rates, but increases excise taxes on petroleum, cars, and vehicle spare parts. (READ: EXPLAINER: How the tax reform law affects Filipino consumers)

The TRAIN law imposed P2.50 per liter tax on diesel. The diesel excise tax will increase to P4.50 in 2019, and P6 in 2020, the 1st package of tax reform showed.

Meanwhile, gasoline is scheduled to be taxed P7 per liter in 2018, P9 in 2019, and P10 in 2020.

LTFRB had told reporters that there will be no fare hike until March following the increase of fuel prices due to new taxes.

LTFRB had gave assurance to commuters that Grab’s and Uber’s fare hike petitions will have to go through a process, of which includes public consultation. – Rappler.com

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI

How does this make you feel?

Download the Rappler App!