South Luzon bus operators told: Not so fast on fare hike

Malacañang on Saturday told bus operators plying routes in southern Luzon not rush on their plan to hike fares by P4 due to a 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 on government-run dzRB radio. He added 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," he said, adding the Land Transportation Franchising and Regulatory Board will set public hearings on the matter. Earlier reports said the South Luzon Bus Operators Association (SOLUBOA) plans to file a petition for a P4 fare hike before the LTFRB. Another transport group, 1-UTAK, was quoted as saying bus operators and other transport groups may have no other choice but to ask additional fare hikes. The VAT on toll took effect last October 1. — LBG, GMA News