All aboard? Aquino imposes tax on toll fees. (Photo by AP via Sulekha.com)

The administration of President Benigno Aquino III seems dead-set in violating a key campaign promise not to raise or introduce new taxes come Monday when the Bureau of Internal Revenue starts to impose the 12-percent value-added tax on toll fees on Aug. 16, on top of a whooping 250-percent toll fee hike in the South Luzon Expressway.

As of posting time, Malacanang has not ordered the BIR to hold the tax imposition which will result in increases in toll fees.

Liberal Party Sen. Ralph Recto, the principal author of the Expanded VAT Law who lost a reelection bid in the 2007 elections over the tax, assailed the VAT on toll fees.

In a hearing at the Senate, the country’s chief tax collector said the Arroyo administration is duty bound to collect taxes and that the law did not expressly exempt toll fees.

Aiming to get P1.3-billion in new revenues, the new tax and a simultaneous 250-percent toll fee hike in SLEX, will result in higher toll fees:

SLEX: Alabang to Calamba, Laguna
P85, up from P22, for Class 1 vehicles
P170, up from P43 for Class 2 vehicles
P255, up from P65 for Class 3 vehicles

NLEX: Balintawak to Santa Ines
P195, up from P174, for Class 1
P487, up from P435, for Class 2
P585, up from P522, for Class 3

SCTEX: Subic to Tipo
P20, up from P18, for Class 1
P50, up from P45, for Class 2
P60, up from P54, for Class 3

Skyway  and Santo Tomas to Balagtas (Batangas)
P67, up from P60, for Class 1
P134, up from P120, for Class 2
P200, up from P179, for Class 3

R1 Expressway: Manila-Cavite Toll Expressway
P9, up from P8, for Class 1
P48, up from P43, for Class 2
P73, up from P65, for Class 3

SCTEX: Tipo to Tarlac
P203, up from P181, for Class 1
P407, up from P363, for Class 2
P609, up from P544, for Class 3

The Supreme Court meanwhile has not acted on a separate petition seeking to stop the toll fee hike.

Transport groups and commuters have criticized the toll fee hike and the imposition of VAT. They claimed the Toll Regulatory Board did not even consult the public nor has it justified the toll fee hike it approved for SLEX.

One Response to “Broken Promise No. 1: Aquino administration to impose VAT, raise toll fees”

  1. [...] This post was mentioned on Twitter by Tonyo Cruz, Tonyo Cruz, Jeff Tagle,  Maye Mariano, vince cinches and others. vince cinches said: RT @tonyocruz: May 12-percent VAT at toll fee hike sa Daang Matuwid! http://ow.ly/2oyOh [...]

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