Jeepney drivers subsidy may increase to P20k in 2019

The Department of Transportation (DOTr) plans to quadruple the total amount of the Pantawid Pasada subsidy to jeepney drivers and operators from P5,000 to P20,000 next year, the chairman of the House Committee on Ways and Means recently said.

Committee Head and Quirino Rep. Dakila Carlo E. Cua said this after the DOTr, the Land Transportation Franchising and Regulatory Board and the Land Bank of the Philippines said they will release the first batch of cards loaded with a subsidy of P5,000 to help jeepney drivers cope with the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) law, particularly the excise tax on fuel.

Cua said the government allocated P997 million budget for the program this year. The lawmaker added the subsidy hike would require at least P5 billion.

“For 2019 the DOTr is proposing to increase the amount to more than P20,000 per franchise holder, and will require at least P5 billion,” he said.

Section 82 of the TRAIN law states that a social-welfare benefit program will be implemented, where qualified franchise holders of jeepneys are entitled to fuel vouchers. The fuel subsidy program would help our drivers cope with the soaring prices of diesel fuel.

Under the TRAIN law, an excise tax of P2.50 per liter is imposed on diesel starting January this year, but the rate will go up to P4.50 in 2019, and P6 in 2020.

Earlier, Energy Secretary Alfonso G. Cusi signed the Joint Memorandum Circular (JMC) agreeing to general guidelines for the program implementation.

The role of the Department of Energy (DOE) under the said JMC is to ensure the acceptance of Pantawid Pasada Cards as a form of payment by oil companies.

According to Cua, while the “launch is an important first step,” there remains a more difficult task to undertake.

The program was revived from a past fuel subsidy program of the DOE known as the Public Transport Assistance Program (PTAP) in preparation for the implementation of the TRAIN law.

However, the PTAP was flagged with “irregularities” by the Commission on Audit after the DOE’s failure to submit the status of accomplishment, fund loading by Bank of the Philippine Islands, fund utilization and inventory of PTA cards. As of 2018 PTAP remains unaudited.