Saturday, January 15, 2011

News Update New cab rates to take effect on Jan. 24

THE Land Transportation Franchising and Regulatory Board (LTFRB) yesterday said the increase in taxi fare rates will be implemented on Jan. 24 instead of Jan. 15, as earlier announced. This is because the order was only published in the newspapers last Jan. 6.

LTFRB 7 Director Ahmed Cuizon said the increase will take effect on Jan. 21, or 15 days after the publication of the new fare order. But they decided to implement it on Jan. 24 because Jan. 22 and 23 fall on a Saturday and Sunday, he said.

Cuizon said the rescheduling of the implementation of new taxi fares to Jan. 24 is beneficial to those who will hail a cab during the celebration of Fiesta Señor and Sinulog because they will pay existing rates.

The current flag-down rate is P30 for the first 500 meters and P2.50 for every 250 meters and P2.50 per two-minute waiting time. The new flag-down rate will be P40 and P3.50 for every succeeding 250 meters and P2.50 per two-minute waiting time.

Jose Aaron Pedro of the Freedom from Debt Coalition-Cebu and Josefina Lim of the Associated Labor Unions criticized LTFRB Manila for the 33-percent increase in taxi fares, which they considered exorbitant.

Requirements

However, Richard Ca-bucos, president of Metro Cebu Taxi Operators Association, said the increase is needed because of the steadily increasing prices of fuel, tires, oils and spare parts.

But LTFRB board member Manuel Iway said only taxi operators who install meters that issue receipts to passengers can charge the new rates.

Operators must also provide at least three uniforms each to the drivers, and the taxi meters must be calibrated or recalib-rated by authorized LTFRB inspectors.

Cuizon said the inspection and calibration of taxi meters will start on Jan. 24.

Operators will have three months to procure meter-receipting machines, or they will be penalized for undercharging.

Taxi operators were glad when LTFRB revealed the fare increase last month. But when the Bureau of Internal Revenue announced it will collect 10-percent tax from the gross receipts of the taxi meters, some of them were discouraged and don’t want to implement the increase.