MANILA, Philippines – Ride-hailing company Grab on Friday, January 5, asked the Land Transportation Franchising and Regulatory Board (LTFRB) for a 5% fare increase, citing the impact of the new tax reform law on its operations.
In a petition before the LTFRB filed on Friday, Grab sought the following:
Photo by Darren Langit/Rappler
This comes on the heels of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which took effect on January 1. The law brings down income tax rates, but which increases excise taxes on petroleum, cars, and vehicle spare parts.
Grab said the new tax law would mean higher expenses for Grab drivers, which would require a fare increase in the company's fare rates.
"We looked into the cost of maintaining a vehicle, we looked at the lifespan of the vehicle, we looked at the price of petroleum products. Those are the bases that we used to determine the amount of increase per trip," said Grab spokesperson Leo Gonzales, upon filing the petition.
Grab is waiting for the LTFRB to schedule a hearing on its petition. – Rappler.com