The Philippine government said on Monday it allowed a 33 to 36 percent rise in public transport fares in Manila, putting more pressure on residents of the capital feeling the pinch of higher food, power and fuel costs. The fare hike will take effect on May 26, even as labour unions are demanding an increase in the minimum wage for private sector workers in Manila of as much as 42 percent to 425 pesos ($7.87) per day. Filipinos are also likely to be paying a higher sales tax soon, after lawmakers broke weeks of deadlock on Monday by agreeing to give President Gloria Macapagal Arroyo the authority to raise the rate to 12 percent from 10 percent next year.
The revamped value-added tax, expected to be approved formally this week, is the biggest in a package of measures requested by Arroyo to help cut the government's $3.4 billion budget deficit and its heavy dependence on debt.
But the higher transport fares and sales tax are likely to be deeply unpopular, compounding Arroyo's sliding approval ratings as Filipinos complain about the rising cost of living and rampant corruption.
The Land Transportation Franchising and Regulatory Board said it granted a two-peso rise to 7.50 pesos for the minimum jeepney fare in Manila and nearby provinces so that drivers and operators could recoup losses from higher global oil prices. It approved a one to two-peso increase in other provinces.
The transport regulator also allowed a two-peso hike to 8 pesos for the minimum fare for non-airconditioned buses in Manila, Chairwoman Elena Bautista told reporters.
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