Sept. implementation for MRT/LRT fare hikes?

PLANNED FARE HIKES for Metro Manila’s three light rail systems could take effect next month, the Transportation department yesterday said.

“It will take one month for us to finish the study. We hope by September after a public hearing to implement the new rates,” Undersecretary Dante M. Velasco said.

He did not provide any estimate as to how much fares could rise, only saying: “[F]or sure, the new rates will still be affordable. We are also looking at other sources to lessen the burden to the commuters.”

Among the options being studied, he said, are discounts for students.

The administration has signalled its intention to hike the fares, with President Benigno C. Aquino III last month claiming the previous government had pressured the Metro Rail Transit (MRT) operator to keep its charges low.

Metro Manila has three light railways: the MRT-3 line which runs almost the entire length of EDSA, the LRT Line 1 from Monumento to Baclaran, and the LRT Line 2 from Santolan to Recto. MRT fares run as high as P15. The top fare for the LRT-1 is P20 while that for Line 2 is P15.

Finance department data show that subsidies to the LRTA which operates LRT lines 1 and 2 amounted to P34 million last year. The government’s 2010 budget, meanwhile, has allocated P645 million for the MRT’s operation and maintenance.

Finance Secretary Cesar V. Purisima has said the government was looking at either continuing the subsidies but charging value-added tax (VAT) or raising fares outright.

“If we continue the subsidies, we have to collect taxes on the fares. If we charge the right users’ pay[ment], there would be no need to charge VAT,” he said last month.

Mr. Velasco, meanwhile, said the government would push through with the MRT takeover.

“We would push through with the buyout of the Sobrepeña-led Metro Rail Transit Corp. whose build-operate-transfer contract has been costing the government millions…,” he said

“Give us one year to complete our study regarding the buyback. For the meantime, we really see the need to increase fares.” –Businessworld