LTFRB: Transport network companies must pay correct taxes

MANILA-- The Land Transportation and Franchising Regulatory Board (LTFRB) reiterated that transportation network companies (TNCs) must pay fair and correct taxes to the government.

Clarifying Department of Transportation (DOTr) Secretary Arthur Tugade's statement in a MalacaAang press briefing on Wednesday, LTFRB chairman Martin Delgra III said the government wants a "share" of the TNC's earnings.

In the press conference, Tugade said those who are engaged in public transportation should submit themselves to regulation.

According to him, regulation will not only ensure a level playing field but also guarantee accountability, allowing the government to collect the right taxes from the TNCs.

Like any business, TNCs and their partners are covered by laws of taxation and they must give what is due to the government," Delgra said.

The problem is how can the government be assured that it is getting its fair share from these TNCs, when a majority of their drivers do not have franchises? Under existing laws, the TNCs, owner of vehicles, and drivers who are earning from this business all have tax accountability.

Based on the numbers given by Uber and Grab, there are 56,000 activated Transport Network Vehicle Services (TNVS) drivers, including the 3,000 with approved franchises. About 40,000 vehicles are plying the streets without certificates of public convenience (CPC) or provisional authority (PA).

On Oct. 29, 2015, the BIR issued Revenue Memorandum Circular No. 70-2015 or the guidelines for the taxability of TNCs and their partners.

Source: Philippines News Agency