MANILA, Philippines — The Land Transportation Franchising and Regulatory Board (LTFRB) is set to issue a memorandum circular to streamline the implementation of discounts for students, persons with disabilities and senior citizens using ride-hailing platforms.
LTFRB Chairman Teofilo Guadiz III disclosed the initiative during a hearing of the Senate committee on public services chaired by Sen. Raffy Tulfo on Wednesday.
Guadiz said the memorandum would address inconsistencies due to conflicting past directives, resulting in the unfair enforcement of discounts by Transport Network Companies (TNCs).
The memorandum will allocate the amount of fare discount, with 80 percent to be covered by TNCs and 20 percent by drivers and operators.
“We are drafting a memorandum circular, which will be implemented by February. The fare discount will be shouldered by the TNC operator and the owner of the app,” Guadiz said.
“It should be the responsibility of the TNC or the vehicle owner to cover the discount,” he added.
Guadiz said the LTFRB is inclined to have TNCs cover 80 percent of the 20 percent fare discount. Operators will pay for the remaining 20 percent.
“As of now, we have to admit there is no legislation specifying how the cost of these discounts should be distributed. This is an oversight on our part and we apologize for it,” Guadiz said. “We are committed to rectifying this by the end of this month. We will ensure the proper implementation of these guidelines.”
Tulfo said TNC drivers and operators should not shoulder the cost of the fare discounts.
“These costs should be passed on to the TNCs because they are the ones making a profit,” he said.