Gov’t suspends tariff on spare parts of PUVs

The government temporarily suspended yesterday the tariff on spare parts for vehicles used for public transportation to help the industry cope with the rising cost of gasoline and diesel.

Executive Order 243 provides for the suspension and reduction for six months of tariff rates of duty of frequently used spare and replacement parts for buses and jeepney.

"In signing the EO, President Arroyo said the decision to "rescue" the public transportation industry from collapsing will mitigate the impact of the high cost of spare parts for buses and jeepneys and, at the same time, prevent further increase in transport fares.

To avail of the tax suspension and reduction privileges, "importers of frequently used spare and replacement parts for buses and jeepneys are required to secure prior accreditation from the Department of Transportation and Communications, and an import authority from the Bureau of Imports Services (BIS).

The issuance of the EO was the offshoot of a dialogue between the government and representatives of public transport groups which resulted to a moratorium on strikes and increase in fares until a solution could be found to soften the impact of the cost of gasoline and diesel on the public transport industry.

Bus and jeepney operators are complaining that the high cost of fuel and spare and replacement parts are forcing them to increase their fares.

The tariffs rates of duty on practically all spare and replacement parts for buses and jeepneys have been suspended, except for a few of them which were reduced to a minimum of 10 percent. These are those that could be used for other vehicles other than for public conveyances.