Tollway fees to increase Nov. 1
First posted 11:14pm (Mla time) Oct 25, 2005
By Clarissa Batino
Inquirer News Service
Editor's Note: Published on Page A23 of the October 26, 2005 issue of the Philippine Daily Inquirer
STARTING NOV. 1, MOTORISTS using the different tollways in and around Metro Manila will have to bear higher fees due to the expanded value added tax (VAT).
The North Luzon Expressway (Nlex), the Manila-Cavite Coastal Road, the South Luzon Expressway (Slex), the Skyway and the Southern Tagalog Arterial Road, or Star, will start collecting the VAT.
State-owned Philippine National Construction Corp., which has the sole franchise to operate tollways in the country, said it had asked the Bureau of Internal Revenue (BIR) to exempt it from the VAT but it denied the petition.
From Magallanes to Calamba, the new rates for Slex will be P84 for Class 1 from P76, P167 for Class 2 from P151, and P250 for Class 3 from P227.
Class 1 are cars and other light vehicles. Class 2 are light trucks and buses and Class 3 are heavy trucks.
Along the elevated portion or the Skyway stretching from Buendia to Bicutan, the new rates will be P94 for Class 1 from P85, P187 for Class
2 from P170, and P281 for Class 3 from P255.
The new toll along the Coastal Road will be P17 for Class 1 from P15, P33 for Class 2 from P30, and P50 for Class 3 from P45.
For the Star, the new rates will be P16 from P10 for Class 1 vehicles, P37 from P33 for Class 2, and P57 from P50 for Class 3.
As for the Nlex, the new rates will be P223 for Class 1 from P203, P557 for Class 2 from P507 and P669 for Class 3 from P609.
The newly upgraded Nlex, now operated by the Manila North Tollways Corp., had just increased its fees early this year. The highway stretches from Balintawak to Sta. Ines in Pampanga.
Fees from Balintawak to North Bocaue are a flat rate of P46 for Class 1 from P42, P116 for Class 2 from P106 and P139 for Class 3 from P127. This portion of the Nlex is classified as an open highway, which imposes a flat toll fee.
The Skyway and the Coastal Road too, are open highways.
The stretch from South Bocaue to Sta. Ines is a closed highway, just like the Slex. When passing along closed highways, motorists pay a toll for every kilometer traveled.
"Other than taxes on income and real property, no other tax or fee shall be levied on PNCC and its franchise assignee," said the PNCC, citing its pending petition for VAT exemption before the BIR.
"As such, VAT imposition would constitute an impairment of contract and considered unconstitutional," said PNCC spokesperson Charito Chavez in an earlier interview.
A BIR ruling in August 1999, according to Chavez, emphasized that the tax-exempt status of the PNCC and its franchise assignee is covered by the "non-impairment clause of the Constitution."
BIR deputy commissioner Kim Henares, however, said the bureau had long ruled that the PNCC was not exempt from VAT.
"Since 1995, they were not exempt from VAT. We even told them to start issuing receipts as required by the BIR," said Henares. The BIR executive said the internal revenue agency had even penalized the PNCC P1.2 million for its failure to issue receipts.
Meanwhile, fares of the two major mass transport railways in Metro Manila will remain the same, until further notice.
Officials of the Metro Rail Transit 3 (MRT 3) and the Light Rail Transit Authority (LRTA) yesterday said that while the two railway agencies had a request for a P10-increase, it won't be implementing any hikes on Nov. 1 or until Malaca¤ang approved their petition.
LRTA administrator Mel Robles said LRT Lines 1 and 2 won't be passing the impact of the 10 percent expanded value added tax to commuters.