PUJ drivers to get P10,000 subsidy even without fuel tax hike in 2019

Jeepney drivers will get a P10,000 fuel subsidy even if the second round of excise tax increase on petroleum products is suspended in 2019, Assistant Secretary Tony Lambino of the Department of Finance said Wednesday.

The second round of increase in excise taxes on fuel under the tax reform law will be postponed once crude oil prices hits $80 per barrel in world markets for three consecutive months—a situation that the government expects to happen in the fourth quarter of 2018.

This year the Pantawid Pasada subsidy has been pegged at P5,000 to help public utility jeepney (PUJ) drivers tide over higher excise taxes on fuel under the 2018 Tax Reform for Acceleration and Inclusion law enacted by President Rodrigo Duterte last December.

“Instead of quadrupling the amount, dodoblehin na lang po. So there will be a P10,000 Pantawid Pasada grant for 2019. Iyan po ay kung suspended ang [imposition of second tranche] of excise taxes for the whole 2019,” Lambino said in a press conference in Malacañang.

PUJ drivers were supposed to get P20,000 under the Pantawid Pasada program next year if the second batch of excise tax increase on fuel pushes through.

Chairman Martin Delgra of the Land Transportation and Franchising Regulatory Board, however, assured the public that the P10,000 would be enough to help drivers deal with soaring cost of fuel.

“We have been going around the country in distributing Pantawid Pasada cards, and I would say the drivers are happy with the P5,000 and I would say they would be just as happy or even happier if they would have P20,000 by next year,” Delgra said.

“They will be just as appreciative of this program,” he added.

However, the government is able to distribute around 40 percent of at least 140,000 Pantawid Pasada cards so far.

Delgra said that it takes Land Bank of the Philippines time to distribute the cards since the program coincides with the Conditional Cash Transfer (CCT) Program for the poor and the additional Unconditional Cash Transfer under the tax reform law.

“Hati rin ang oras at resources nila on implementing these social mitigating measures. But we have coordinated with Landbank branches for continuing distribution of these [Pantawid Pasada] cards as soon as possible. We have distributed 57,227 Pantawid Pasada cards so far and this will continue even on weekends,” he said. —VDS, GMA News