TRANSPORT network vehicle drivers are not exempted from paying taxes, the Land Transportation Franchising and Regulatory Board (LTFRB) said on Thursday.
“Like any business, transport network companies [TNCs] and their partners are covered by laws of taxation and they must give what’s due to the government,” LTFRB Chairman Martin Delgra 3rd said in a statement.
Delgra made the statement after Transportation Secretary Arthur Tugade was criticized by the public over his remarks that the government only wanted its fair “share” from the TNCs.
“The point of Secretary Tugade and the LTFRB is, if a vehicle is colorum [unregistered], it is not accountable to the government. How can you collect taxes from them if they are not registered?” Delgra said.
“The problem is, how can the government be assured that it is getting its fair share from these TNCs when majority of their drivers do not have franchises?” Delgra added.
Based on data given by Uber and Grab, there are 56,000 active TNVS drivers including 3,000 with approved franchises. Out of these numbers, the two TNCs admitted there are transport network vehicles or TNVs which are accredited to both Uber and Grab.
This means that some 40,000 TNC drivers are plying the streets without being required to file tax returns with the Bureau of Internal Revenue, according to the LTFRB.