PRESIDENT Benigno S. Aquino III on Monday has suspended imposing additional taxes on toll fees pending further discussions on the issue.
The Chief Executive pointed out that the discussions centered on two important points namely: the Philippine National Construction Corporation (PNCC) franchise and the possible effect of the actual imposition of VAT on toll which, he said, “might deter economic activity.”
According to the President, the issue on the PNCC franchise, whose extension beyond its expiration 2007 is being questioned in court, has to be addressed as the revenue generated from this entity can be used to recoup the investment of those who built the South and North Luzon Expressways.
He said the imposition of VAT on toll fees and the subsequent reconfiguring of toll fee amounts may have implications on future investments in the country.
“There is a study on-going on the implications as far as SLEX is concerned: the increase in toll rates, the increase in transportation, and of course VAT is another cost that might deter economic activity,” the President said.
“There is an ongoing study on the effect of all these increases in toll rates and transportation, and of course Vat is another cost that might deter economic growth,” he said. (PIA-Bohol)