Uber Philippines is seeking a fare increase to mitigate the impact of higher fuel prices and excise taxes on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
In a petition filed before the Land Transportation Franchising and Regulatory Board (LTFRB) on Thursday, Uber is proposing that the fare for its Uber X service be increased from PHP9 to PHP12, depending on the time of the day, from the current rate of PHP5.70 per kilometer, while its base fare of PHP40 and time charge of PHP2 remain the same.
“The costs that driver partners have to bear to maintain their vehicles is projected to increase due to several factors, including requirements under the Omnibus Franchising Guidelines (OFG), increasing fuel prices, and new excise taxes on petroleum,” the ridesharing firm said in a statement.
Grab has earlier filed its petition, asking that their fares be increased, in addition to the base rate of PHP40, from a rate of PHP10- PHP14 per kilometer to PHP11 – PHP15 per kilometer and its time charge increasing to PHP2.10 from the current PHP2 per minute rate.
Under the TRAIN law, an initial excise tax of PHP2.50 per liter shall be imposed on diesel this year, which will eventually increase to PHP6 by 2020. An excise tax of PHP7 will be imposed on gasoline in 2018, gradually increasing to PHP10 in 2020. (PNA)
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