Tollway Fees to rise next week !

Tollway fees to rise next week

hello everyone,

i was just came from canlubang, laguna last sunday to assess and take photos of several properties i will start working on.  a 76 hectare property overlooking canlubang golf and country club and above the property, you can see palace in the sky.  surrounding the property is ayala land’s development, nuvali and treveia.
at the end of the expressway, i took a picture of the current rates.  just want to share it with you.  i have no idea, what the new rates will be and the effect this will have on the most.  i just hope and pray that some mutual agreement is reached as there are already groups with strong resistance to this move.
we are on the verge of a very upbeat economy with the world looking at asia, particularly china and the philippines as an investment haven and issues such as these must be addressed immediately.   have a great day….
robert
Article taken from Business World :

Imposition of the value-added tax (VAT) on tolls will push through next week as scheduled, with users of the South Luzon Expressway (SLEx) to be hit particularly hard based on adjusted fees approved by regulators. The Toll Regulatory Board (TRB) on Saturday detailed new charges for six Luzon tollways. The higher tolls — which take into account the 12% VAT — take effect beginning 10 p.m. on August 16, the date that SLEX adjustments approved earlier this year are also set to be imposed. For users of the highway — the main route to industrial zones south of Metro Manila — the two adjustments mean tolls will nearly quadruple. Businessmen claimed the higher fees would raise the cost of doing business and hence, lower their competitiveness.
The TRB, in its Saturday notice, said: “Any interested expressway user shall have the right to file, within a period of 90 days from the date of publication of this notice, a petition to review the imposition of VAT…” The biggest increases, based on matrices provided by the TRB, will be at the SLEx where tolls were last adjusted in March 2008. In particular, drivers of Class 1 vehicles — cars or jeepneys — entering Alabang and exiting at Calamba will have to pay P85, almost four times more than the current P22. The rate for Class 2 vehicles — light trucks and buses — will rise to P170 from P43, while that for trailers/large trucks will be P255 instead of P65. “For SLEX, it is inclusive of the 250% increase approved by TRB sometime in May and the 12% VAT,” the agency’s spokesman, Julius G. Corpuz, told BusinessWorld Sunday.
Motorists taking the elevated Skyway — which connects to the SLEX — will have to factor in the following increases: drivers of cars and jeepneys exiting at Filinvest will have to shell out P112 instead of P100. The rate for light trucks/buses will go up to P224 from P200 while that for heavy trucks/trailers will be P336 instead of P300. Skyway rates were last adjusted in July 2009. At the North Luzon Expressway (NLEx) where the last toll hike was in July 2008, drivers of cars or jeepneys entering through Balintawak and exiting at Dau will have to pay P195 from P174 previously. The bus/truck rate will be P487, up from P435, while that for large trucks and trailers will be P585 instead of P522. As for cars and jeepneys using the R-1 (Radial Road 1) Expressway segment of the Manila-Cavite Toll Expressway, the fee has been adjusted to P25 from P22.
The last toll hike for this road took effect January 2009. Drivers of Class 1 vehicles entering the Sto. Tomas end of the Southern Tagalog Arterial Road (STAR) — where a toll hike was implemented just last month — will have to start paying P67 when exiting at Balagtas, Batangas, up from the current P60, while those on Class 2 vehicles will pay P134, up from P120. The Class 3 rate will be P200 instead of P179. At the Subic-Clark-Tarlac Expressway (SCTEx) — last rate hike, April 2008 — the new rates for the Tipo to Tarlac stretch are: Class I, P203 from P181; Class 2, P407 from P363; and Class 3, P609 instead of P544. Ernesto B. Santiago, president of the Semiconductor and Electronics Industries in the Phils., Inc., said the new tolls would be an additional burden. “Anything that will bring up additional costs is a burden on those doing business here and make us less competitive, particularly during these times when the electronics business is [just] picking up [from last year’s downturn],” he said. Philippine Exporters Confederation President Sergio R. Ortiz Luis, Jr. echoed this sentiment, adding “To what extent [costs will go up], we don’t know yet.’ “The cost of doing business here is already quite high,” he claimed. Philippine Chamber of Commerce and Industry President Francis C. Chua raised the prospect of manufacturers subsequently raising prices, saying: “Businessmen have no choice but to accept what government imposes. Since this will be an additional cost, it will mean higher prices for consumers. It is the consumers that will be shouldering the cost.” Officials of affected transport groups, particularly the Provincial Bus Operators Association, were not immediately available for comment. Bureau of Internal Revenue (BIR) Commissioner Kim S. Jacinto-Henares said in a telephone interview Sunday that the release of the new toll matrix also meant the government would not be pursuing back tax claims versus tollway operators. “We have agreed that I will not collect the back taxes if the VAT is imposed on August 16. But [tollway firms] will have to request for abatement,” Ms. Henares said.
Revenue Memorandum Circular 63-2010 — issued by the Bureau of Internal Revenue (BIR) last July 19 — set the August 16 implementation date for the VAT on tolls. It also allowed tollway operators with assessed VAT liabilities for previous years to apply for abatement under the National Internal Revenue Code (NIRC). Section 204 of the NIRC states that the commissioner has the authority to abate or cancel a tax liability when the tax apears to be unjustly assessed or the administration and collection costs involved do not justify the collection of the amount due. As part of its effort to push the implementation of the VAT, the BIR last May issued notification letters to tollway operators for back taxes totalling P6.5 billion for the years 2007 to 2009. The BIR had wanted to collect the VAT from tollway operators since 2005, when it issued RMC 52, but this was not implemented as the TRB asked whether the tax could be imposed. The BIR tried to collect the tax again in 2009 when issued RMC 72 reiterating RMC 52’s validity. Implementation, however, was deferred by the Cabinet. A fresh attempt was made last March, via RMC 30-2010 which set an April 1 implementation date for tolls charged drivers of private vehicles. The BIR then said the tax would boost government revenues by around P1.3 billion annually. The Department of Finance and the Department of Transportation and Communication, however, again deferred the order following an outcry, but gave the TRB up to the end of April to come up with the mechanics on how to collect the tax. Further delays — the May 10 national elections was also seen as a factor — meant the scheme would finally take effect under a new administration. — BusinessWorld

Leave a Reply

Compare listings

Compare