Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

7318

Introduced by Honorable FREDERICK W. SIAO

EXPLANATORY NOTE

At present, the grant of student fare discounts is only through a memorandum
circular of the Land Transportation and Franchising Regulatory Board (LTFRB). The
proposed measure aims to put the thrust of the circular forward by institutionalizing
the grant of a fare discount privilege to bona fide students on land, water, air and rail
transport utilities.

The proposed grant is envisioned to lessen the impact of the current
economic difficulties and assist students and their parents or guardians in
shouldering the transportation expenses relative to the rising cost of education in our
country. Majority of its intended beneficiaries belong to the indigent, depressed and
underprivileged sector. Hence, they need and deserve the assistance of the
government.

Under the proposed measure, the fare discount privilege is available to
students even during Saturdays, Sundays, Christmas vacation and other holidays to
enable and encourage them to undertake research work and group studies. This will
also benefit certain students, like medical interns and those undergoing military
trainings and specialized studies, who are required to report during such days and
periods. Moreover, students who are travelling abroad for education, training, and
competition are exempted from payment of travel tax and airport terminal fee.

Approval therefore is earnestly sought



Carr auen

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS,
‘Second Regular Session

7318

HOUSE BILL No.

Introduced by Honorable FREDERICK W. SIAO

AN ACT
INSTITUTIONALIZING THE GRANT OF STUDENT FARE DISCOUNT
PRIVILEGES ON PUBLIC TRANSPORTATION AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. — This Act shall also be known as the “Student Fare
Discount Act.”

SEC. 2. Declaration of Policy. ~ Pursuant to Article XIV, Section 1 of the
Constitution, “The State shall protect and promote the right of all citizens to quality
education at all levels and shall take appropriate steps to make such education
accessible to all.” In addition, Paragraph 3, Section 2 thereof directs the State to
establish and maintain a system of scholarship grants, student loan programs,
subsidies, and other incentives which shall be available to deserving students in both
public and private schools, especially to the underprivileged

SEC. 3. Purpose. — Consistent with these Constitutional mandates, this Act aims
to:
a) Establish a mechanism that ensures the mandatory grant of fare discount
privilege to students;


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b) Enlist the cooperation and support of transportation utility owners to
extend assistance to students as a social responsibility through the
observance of this grant; and

©) Encourage students, especially the poor and underprivileged, to pursue
quality education to secure their future and make them responsible
citizens.

SEC. 4. Definition of Terms. - For purposes of this Act:

a) —“Studenf' refers to any Filipino citizen currently enrolled in duly authorized
basic and tertiary education institutions, including technical-vocational
schools. Specifically excluded are those enrolled in dancing and driving
schools, short term courses of seminar type, and post-graduate studies
(those taking up medicine, law, masteral, doctoral degrees; and the like);
and

b) “Transportation utilities” refers to both public and private companies
engaged in the conveyance of passengers, either by land, water, air, or
rail for a fixed rate of fees, excluding school transport service providers.

SEC. 5. Coverage. - This Act shall cover all Filipino students, except those
specifically excluded in Section 4 hereof, engaging the services of transportation
utiities. Land transport includes, but not be limited to, public utility buses (PUBs),
public utility jeepneys (PUJs), taxis, tricycles, Transport Network Vehicle Services
(TNVS), Transport Network Companies (TNCs), shuttle services, and public and
private railways, such as the Light Rail Transit (LRT), Mass Rail Transit (MRT), and
Philippine National Railways (PNR).

The fare discount and other privileges under this Act shall be available for the
entire period the student is enrolled, including weekends and holidays. In the event
of a promotional fare discount, the student may avail of the promotional discount or
the discount provided herein.

SEC. 6. Privilege of Students Involving Domestic Travel. - The students
under this Act shall be entitled to a grant of twenty percent (20%) discount on regular
fares, upon presentation of their duly issued school Identification Cards (IDs) or

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current validated enrollment forms supported by other documents to properly
establish identity, subject to an appropriate verification mechanism to be provided in
the Implementing Rules and Regulations (IRR): Provided, That in the case of air
transportation utilities, the discount shall only apply to the base fare or the price of
the ticket before taxes and costs for ancillary services.

SEC. 7. Privilege of Students Involving International Travel. ~ All laws to the
contrary notwithstanding, Filipino students who will travel abroad for education,
training, and competition shall be exempt from the payment of travel tax upon proper
showing of proof or documentation of intended purpose.

SEC. 8. Prohibitions on Availment of Double Discounts. - The privileges
mentioned in this Act shall not be claimed if the student claims a higher discount as
may be granted by the transportation utility or under other existing laws or in
combination with other discount programs.

SEC. 9. Tax Deduction. - The transportation utility may claim the discounts
granted herein as tax deduction based on the cost of the services rendered
Provided, That the cost of the discount shall be allowed as deduction from gross
income for the same taxable year that the discount is granted: Provided, further, That
the total amount of the claimed tax deduction net of VAT, if applicable, shall be
included in their gross sales receipts for tax purposes and shall be subject to proper
documentation and to the provisions of the National Internal Revenue Code (NIRC),
as amended.

SEC. 10. Filing of Complaints. - Students who are refused from availing of the
privileges under this Act may file their complaints with the following proper
authorities:
a) The Land Transportation Franchising and Regulatory Board (LTFRB) for land
transportation utilities;
b) The Maritime Industry Authority (MARINA) for sea/water transportation
utilities;
c) The Civil Aeronautics Board (CAB) for air transportation utilities;


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d) The Legal Service of the Department of Transportation (DOT?) for rail
transportation utilities, including the Light Rail Transit (LRT), Metro Rail
Transit (MRT) and Philippine National Railways (PNR); and

e) Local government units concerned for tricycles.

All complaints disposed of by such regulatory agency may be brought to the
Office of the Secretary of the DOTr for review.

SEC. 11. Penalties. - After due investigation and finding the complaint against
any transportation utility to be true and valid, the following penalties shall be imposed
as herein specified:

a) For Land Transportation Utilities: A fine of five thousand pesos (R5,000) for
the first offense; a fine of ten thousand pesos (R10,000) and impounding of unit
for thirty (30) days for the second offense; and a fine of fifteen thousand pesos
(P15,000) and cancellation of Certificate of Public Convenience (CPC) for the
third and subsequent offenses;

b) For Water Transportation Utilities: A fine ranging from ten thousand pesos
(P10,000) to fifty thousand pesos (P50,000) and warning for the first offense; a
fine ranging from twenty thousand pesos (R20,000) to sixty thousand pesos
(P60,000) and suspension of operation of the ship for a period not exceeding
thirty (30) days for the second offense; and a fine ranging from thirty thousand
pesos (R30,000) to seventy thousand pesos (R70,000) and suspension of
operation of the ship for the third and subsequent offenses: Provided, That the
imposition of the ranges of penalties under this sub-paragraph shall be based on
the ship's volume in gross tonnage;

©) For Air Transportation Utilities: A fine ranging from fifty thousand pesos
(50,000) to one hundred thousand pesos (R100,000) for the first offense; a fine
ranging from one hundred thousand pesos (R100,000) to one hundred fifty
thousand pesos (P150,000) and a warning for the second offense; and a fine
ranging from one hundred fifty thousand pesos (R150,000) to two hundred


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thousand pesos (R200,000) and other sanctions as may be determined by CAB,
for the third and subsequent offenses;

d) For Rail Transportation Utilities: All rail transportation utilities are mandated to
observe the aforesaid fare discount privilege and designate a student/senior
citizen fare booth in their boarding stations. Violations thereof shall be sanctioned
or fined under the existing Civil Service Rules. For private railways, the amount of
fines prescribed under sub-paragraph (b) of this Section shall apply, to be
imposed by the DOTr.

Upon filing of an appropriate complaint, and after due notice and hearing, the
proper authorities in subparagraphs (b), (c), and (d), with respect to private railways,
of this Section may also cause the cancellation or revocation of CPC, permit to
operate, franchise, licenses and other privileges granted to the transportation utilities
who fail to comply with the provisions of this Act.

SEC. 12. Use of Falsified Identification Documents and Misrepresentation. -
Any person who avails or attempts to avail of the privileges under this Act through
the use of falsified identification documents, fraud or any form of misrepresentation
shall be denied said privileges and may be subject to civil and penal liabilities
prescribed by law.

SEC. 13. Implementing Rules and Regulations. - The Department of
Transportation (DOTr) and its attached agencies, in consultation with LTFRB,
MARINA, and CAB, and the Department of Finance, shall promulgate, within one
hundred twenty (120) days upon approval of this Act, the necessary rules and
regulations for the effective implementation of the provisions of this Act: Provided,
That the failure of the concerned agencies to promulgate the said rules and
regulations shall not prevent the implementation of this Act upon its effectivity.

SEC. 14. Repealing Clause. — All provisions of laws, decrees, orders, including
rules and regulations inconsistent herewith are hereby repealed or modified
accordingly.


SEC. 15. Separability Clause. — |f any portion or provision of this Act is declared
invalid or unconstitutional, the remainder of this Act or any provisions not affected
thereby shall remain in full force and in effect.

SEC. 16. Effectivity Clause. - This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or in at least two (2) newspapers of

general circulation.

Approved,