Justify fare increase demand, South Luzon transport firms told

Malacanang yesterday put a damper on the plan of bus operators plying routes in southern Luzon to ask for a fare hike of P4 owing to  the 12-percent value-added tax (VAT) on toll.

”There will be a hearing to determine if there is a need to hike fares,” presidential spokesman Edwin Lacierda said.

Lacierda said those seeking the fare hike should defend their position because the VAT is only 12 percent of the toll.

”There should be a justification why they are asking for an increase of whatever amount,” Lacierda said, pointing out that the Land Transportation Franchising and Regulatory Board will set public hearings on the issue.

Leaders of South Luzon Bus Operators Association (SOLUBOA) plans to file a petition for a P4 fare hike before the LTFRB.

Another transport group, 1-UTAK, said bus operators and other transport groups may have no other choice but to ask for a fare hike.

The VAT on toll took effect on October 1.

Earlier, bus, truck and other transport operators hoping to forestall the VAT implementation held a motorcade to protest the impending toll increase, slowing traffic at the South Luzon Expressway.

Among the participants were passenger buses and trucks plying routes in Southern Luzon, as well as jeeps from the Alliance of Concerned Transport Operators (ACTO).