Grab Philippines recently gathered its driver-partners and operators from all over the country for a driver’s forum to discuss the implications of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The event was one of the largest driver forums organized and was attended by Grab officials, Board Member Atty. Aileen Lizada of the Land Transportation Franchising and Regulatory Board, and other stakeholders. Driver-partners and operators from Visayas and Mindanao were also able to attend the forum via video conferencing.
During the discussion, Lizada helped Grab Philippines explain to its driver-partners and operators the implications of the new law, and the next steps of the LTFRB regarding recently filed petitions for fare adjustment considering the expected impact of additional taxes on petroleum products.
“We received already your petition for fare increase and we have gone through it. And there will be a special board meeting to initially discuss these petitions,” Lizada said.
She also mentioned that LTFRB will seek the assistance of National Economic and Development Authority in assessing the fare increase request of Grab for them to have an acceptable formula for everyone.
“We need to find that fine balance which is acceptable to the riding public, one that we are able to defend [our] decision, but also sustainable to the part of Transport Network Companies (TNCs) to do business here, and for [drivers] to have a decent take home pay,” Lizada said.
The LTFRB also expressed their support for Grab’s goal of providing a safe, reliable, and comfortable transportation option for Filipinos while ensuring that driver-partners have a sustainable source of income for themselves and their families.
In the forum, Grab, Southeast Asia’s leading on-demand transportation and mobile payments platform, also expressed its cooperation with the government and the assurance that no fare increase shall take effect unless LTFRB approves their petition.
Grab added that this fare increase will help them to continue providing commuters quality service and for their driver-partners to have a sustainable job where they can still take home a decent income despite the expected price increase in petroleum products.
“We are very thankful that the LTFRB went out of its way to discuss this issue with our driver-partners,” Brian Cu, Grab Philippines Country Head said.
“By explaining TRAIN to our drivers and tackling the steps the LTFRB needs to take before hearing our petition, we believe that Atty. Lizada and our partners in government were able to ensure transparency while assuring our driver-partners that this will be one of their priorities.”
Under the TRAIN, personal income tax rates were lowered and levies on petroleum, automobiles and other products were increased. This tax reform will directly affect the operations of Grab drivers since their business is highly dependent on fuel, automobiles, and car parts.