Grab, Uber appeals delay crackdown

The Land Transportation Franchising and Regulatory Board (LTFRB) is temporarily putting on hold the July 26 crackdown on Grab and Uber drivers without valid franchises, at least for the next 15 days.

On Thursday, the two transport network companies (TNCs) filed separate motions asking the LTFRB to reconsider its July 11 order which banned drivers from either platforms from operating if they do not hold either a valid provisional authority (PA) or certificate of public convenience (CPC).

During talks the other day with Grab and Uber representatives, the LTFRB agreed to entertain their appeals and come out with a ruling within 15 days, thus effectively staying the July 26 planned crackdown.

Lawyer’s point

Grab lawyer John Paul Nabua said they pointed out in their motion for reconsideration that the LTFRB never stopped them from accepting applications from drivers as they were expecting the board to soon lift the moratorium it had imposed on the issuance of CPCs for app-based rides.

He added that seven months ago, the LTFRB asked the TNCs to submit position papers regarding a review of regulations covering the app-based rides. To date, however, the board has yet to release guidelines, Nabua said.

Last week, the LTFRB fined Uber and Grab P5 million each for violating the terms of their accreditation and for adding new drivers to their respective platforms despite the moratorium. Uber paid the fine on Tuesday while Grab followed suit on Thursday.
Covered by tax laws

In a statement, LTFRB chair Martin Delgra said the TNCs were required to pay fair and correct taxes to the government. He described as “utterly malicious” the insinuation that Transportation Secretary Art Tugade wanted a “share” of their earnings.

“How can you assess [their tax liabilities] if they are not registered? Like any business, TNCs and their partners are covered by laws of taxation and they must give what’s due the government,” he said.

Based on the numbers given by Uber and Grab, there are 56,000 activated Transport Network Vehicle Services (TNVS) drivers, including the 3,000 who hold valid franchises.

Of the 56,000, however, some 14,000 drivers were accredited by both TNCs.

Delgra said this meant that roughly around 40,000 drivers were plying the streets without being required to file tax returns with the Bureau of Internal Revenue.

“The problem is how can the government be assured that it is getting its fair share from these TNCs when the majority of their drivers do not have franchises? Under existing laws, the TNCs, owner of vehicles and drivers who are earning from this business all have tax accountabilities,” he explained.

The BIR issued guidelines on the taxability of TNCs and their partners in October 2015.