Press Releases

Salceda: Modernize the Pinoy Jeepney, don’t abolish it; House tax chair wants government to support domestic manufacturers make cheaper but efficient modern jeep

April 14th, 2023

House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) says that the PUV Modernization Program should not “abolish” the jeepney, but should modernize the renowned Filipino vehicle, by preferring locally-made but fuel-efficient vehicles. Salceda also called on the government to extend the deadline for consolidation for jeepneys manufactured in recent years and to support domestic manufacturers of cheaper, more modern jeeps.

“I would summarize my proposal in three points: First, support domestic manufacturing of more modern and more efficient, but similarly stylish jeepneys. Second, increase the subsidy per unit to meet the financial viability gap. Third, buy out old jeepneys for cash,” Salceda said.

Salceda also told the Department of Transportation to consider emissions “on a per capita basis,” since the more modern jeepneys “can accommodate fewer passengers than traditional jeepneys.”

According to Salceda, the traditional jeepney produces some 0.33 kg of CO2 emissions per passenger per year, while the modern jeepneys would still produce some 0.25 kg per passenger due to smaller capacity.

“It’s a 31% saving in per passenger emissions for a vehicle that costs as much as 620% more. We need a cheaper, domestically manufactured jeepney that modernizes the traditional one.”

Support domestic jeepney manufacturing first

Salceda says that the government should first ensure that the domestic jeepney manufacturing sector is an option for the PUV modernization program, and assist it in producing cheaper but similarly modern and efficient units.

“If we can bring the cost of the unit to P600,000 to P1 million, that becomes more realistic for both the jeepney operator, and on a cost-benefit basis. I think the domestic manufacturing sector can do it. But we need to support them.”

“By that figure, you bring ROI to around 7.4 years. Otherwise, with these supposedly modern but still very expensive jeepneys, you run into the same problem.”

“When the time comes to retire these ‘modern’ jeepneys, operators will not do so, because they have not recouped their costs. No one is talking about that,” Salceda said.

“We should also not sacrifice the fact that the jeepney is iconic. Domestic manufacturers can do it in style.”

Salceda projects that, without subsidies, operators will need as much as 22 years to recoup the value of their investments in new jeepneys.

“It’s not that jeepney operators don’t want to modernize. It’s just that, financially, it’s suicide. It makes no sense.”

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