More subsidies for transport sector bared

MANILA, Philippines – President Aquino has ordered the release of an additional P200 million as subsidy for 100,000 public utility drivers and approved the tax discounts for them from manufacturers and dealers of spare parts for public utility vehicles, Malacañang announced yesterday. Presidential spokesman Edwin Lacierda said the Department of Energy was directed to make available a total of P200 million for the 100,000 beneficiaries who will receive P1,200 subsidy under the Pantawid Pasada Program.

“This can directly lower the expenses for the maintenance of the vehicles of operators and drivers of jeepneys, buses, Asian utility vehicles and taxis,” Lacierda said.

He said the program aims to ease the impact of recent oil price hikes due to global developments, particularly the tension between Iran and Western countries over Tehran’s nuclear program.

Lacierda said the Office of Transport Cooperative under the Department of Transportation and Communications and the Philippine International Trading Corp. under the Department of Trade and Industry forged an agreement between cooperatives and manufacturers of tires, batteries and spare parts that they could avail of tax exemption aside from a dealer’s discount.

The cooperatives and manufacturers are set to meet today to start the ordering of supplies.

He added that the government is focusing its programs on the most vulnerable sectors of society, particularly the public transport sector.

“We will have to discuss with other agencies what other packages they have. But so far, these are the areas where the transport sector is most affected by,” Lacierda noted.

He said lowering the costs of tires, batteries and all other parts related to transport would hopefully “go a long way in assisting and lowering the costs in operating these vehicles.”

“We have around 28 cooperatives in all sectors: bus, taxi, public utility vehicles and all these cooperatives will be meeting (today) to elect four geographical cooperatives – north, south, east and west – and they will be the ones dealing with the manufacturers. Once that happens, they will be able to secure purchases at a discount,” Lacierda explained.

Lacierda stressed that the assistance and benefits for the transport sector were being laid out “but again, the President is open to meet with them.”

“We will also apply for dealer’s discounts and tax exemptions… Let’s see how this package will assist the transport sectors. We’ll also monitor,” he added.  –Aurea Calica (The Philippine Star)