Progress delayed is progress denied

are caught flatfooted again, not having consolidated. With their franchises in threat of non-renewal, another transport strike was organized to pressure the LTFRB. It is the proverbial gun that they put to the public’s head. Again, LTFRB relented and extended the deadline to Dec. 31, 2023.

ON the back of the nationwide strike planned by transport groups, the Land Transportation and Franchising Regulatory Board (LTFRB) announced that it would extend, yet again, the deadline for PUV operators to comply with the first phase of the PUV modernization program. The extension takes effect from June 30 and expires on Dec. 31, 2023.

It will be recalled that the PUV modernization program was championed by former DOTr secretary Art Tugade. Ratified in 2017, jeepney and bus operators were given three years, or until 2020, to comply with the first phase of the program. This first phase requires PUV operators to consolidate into cooperatives or corporations to achieve economies of scale – doing so will enable them to professionalize their operations.

The year 2020 came and went and the greater majority of jeepney and bus operators failed to comply. Transport groups asked for an extension and threatened to mount a nationwide strike if they did not get their way.

The LTFRB relented and granted an extension until June 20, 2023, or another three years.

As the new deadline approaches, many jeepney and bus operators

The LTFRB should show some backbone. If they cave every time transport groups threaten a strike, this PUV modernization program will never come to fruition.

The PUV modernization program will make the country’s public transport system more efficient and environmentally friendly. The program calls for the phase-out of jeepneys, buses and other public utility vehicles that are 15 years old or older. These will be replaced by safer, more comfortable and environmentallyfriendly alternatives over the next three years. Currently, there are 220,000 jeepney units operating throughout the country.

The replacement vehicles are required to utilize Euro-4 compliant or electric engines to comply with the Clean Air Act.

PUVs must also be rigged with CCTV cameras, an automated fare collection system, speed limiters and a GPS system. The DOTr specifies no preference as far as manufacturers of new generation PUVs are concerned.

For as long as they pass the Philippine National Standards and are aligned with the Omnibus Franchising Guidelines of the LTFRB, operators will have no problem renewing their franchises.

Government has made it easy for PUV operators to replace their decrepit vehicles. A subsidy of P160,000 has been granted to cover the down-payment, chattel mortgage and insurance of a brand new vehicle. A concessionary interest rate of six percent will be applied over an amortization term of seven years. This allows the PUV operators to obtain a brand new PUV with practically zero cash outlay whilst paying affordable monthly installments. The cost of a new vehicle can range from P900,000 to P2.5 million, depending on its load capacity and engine. Some PUV drivers and/or operators may find it difficult to understand how the financial model works. For guidance, they can refer to the LTFRB or enroll in the Driver Scholar Program of TESDA.

Adjunct with the modernization of buses and jeepneys will be the rationalization of routes. New routes will be created while appropriate number of PUVs will be deployed per route.

The benefits of the program are numerous. For the riding public, they will enjoy more efficient and connected routes, shorter waiting times, a safer and more comfortable journey, predictable travel times, more disciplined drivers (due to the elimination of the boundary system) and reduced traffic. For the drivers, they will benefit by way of fixed base salaries plus benefits (which they are presently deprived of), higher incomes by virtue of overtaxed in property tax, sales tax, income tax and other utility taxes.

In other state like Florida, individual or married tax filers don’t file their state income tax return unless you file your business income. They don’t receive tax refunds in that state.

Itemized vs. standard deductions

In my years of experience, I received several questions whether an itemized deduction is better than standard deductions.

My answer is: ‘It depends.’

If you have more than enough deductions to offer and exceeds the standard deduction, it is better to go for itemized.

Examples of these are:

1. High residential property taxes, mortgage interests, church and charitable donations, medical expenses, drug prescriptions, doctor’s visits, child care expenses, among others. It also depends on the withholding tax you paid on your W-2s. But if you don’t have enough exemptions or deductibles, the tax software will choose standard deductions chart. For instance, if you are single, the deductions is from $14,700 to $16,450 depending on your income.

For Married filing jointly, the deduction is from $27,300 to $31,500; for Qualifying surviving spouse, it’s from $27,300 to $28,700; for Head of household, it’s from $21,150 to $22,900; for Married filing separately, it’s from $14,350 to $18,550. The amount of deduction depends on a taxpayer’s Adjusted Gross Income.

Prescription and holistic drugs and therapies

I also learned that not only prescription drugs are tax deductible but also holistic medications or also known as natural medicine, alternative and complementary medicine

If you are parents taking care of mentally challenged young kids or adult kids who you claim as dependents, you are qualified to claim these unconventional medications even without prescriptions.

Plug-in electric vehicles

If you bought electric vehicles last year including SUVs, you are eligible for tax credits of up to $7,500 under the new vehicle classification. Through 2022, taxpayers will claim the credit on Form 8936 under the rules in effect before the enactment of the Inflation Reduction Act. There’s a provision though. It must meet the requirement that the vehicle was assembled in North America to be eligible for the credit. It will be considered a refundable credit and the advance payment of the credit will be reconciled on the tax return. The Clean Vehicle Credit will expire December 31, 2032.

* * * The opinions, beliefs and viewpoints expressed by the author do not necessarily reflect the opinions, beliefs and viewpoints of the Asian Journal, its management, editorial board and staff.

* * * denino1951@gmail.com vehicles with higher passenger capacities, faster turn around times due to rationalized routes, less working hours, less traffic, less work stress and less franchise costs. It is a win-win situation for all.

There are other reasons why the PUV modernization program needs to be implemented with no more delay. According to the DENR, 80 percent of the pollution in Metro Manila and key cities is attributed to motor vehicle pollution, particularly from old diesel-run PUVs. In terms of motorists’ safety, some 40,133 accidents were recorded involving PUVs between 2016-2019. The extraordinarily high accident rate of PUVs is due to the lack of maintenance of vehicles and failure to replace tires, break pads, headlights and tail lights. The sad reality is that independent PUV operators function from hand to mouth. They simply do not have the financial elbow room to invest in maintenance. Hence, the need to organize into cooperatives or corporations.

And then there is the outdated boundary system – an arrangement that brings out the worst in PUV drivers. The need to earn the boundary compels drivers to race like mad men to secure as many passengers as possible, even if it means breaking traffic rules. Drivers have no choice but to work 12 to 14 hours per day just to earn a decent take-home pay, after boundary. Many have resorted to taking illegal drugs to meet the physical demands of the job.

The PUV modernization program will eliminate the boundary system in exchange for fixed salaries plus SSS, PhilHealth and Pag-Ibig benefits for the driver. Working hours will be rationalized and safer driving conditions secured. Drivers will now be accorded the dignity they deserve.

The PUV modernization program is long overdue. Citizens, commuters and drivers have waited six long years for this badly needed program to be implemented. We must not let those who resist change and those who failed to prepare get in the way of progress. Let this be the last time the LTFRB gives in to pressure. At the end of the day, progress delayed is progress denied.

* * * The opinions, beliefs and viewpoints expressed by the author do not necessarily reflect the opinions, beliefs and viewpoints of the Asian Journal, its management, editorial board and staff.

* * * Email: andrew_rs6@yahoo.com. Follow him on Twitter @aj_masigan