An Act Institutionalizing the Grant of Student Fare Discount Privileges on Public Transportation and for Other Purposes

Seventeenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand eighteen.

REPUBLIC ACT No. 11314

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 Philippine Congress assembled:

Section 1. Short Title. -This Act shall be known as the "Student Fare Discount Act".

Section 2. Declaration of Policy. -Section 1, Article XIV, of the 1987 Constitution states: "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 of the same Article 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.

Consistent with these Constitutional mandates, the State shall:

Section 3. Definition of Terms. -As used in this Act:

Section 4. Coverage. -This Act shall cover all public transportation utilities such as, but not limited to, public utility buses (PUBs), public utility jeepneys (PUJs), taxis and other similar vehicles-for-hire, tricycles, passenger trains, aircrafts and marine vessels. The application of this Act does not cover school service, shuttle service, tourist service, and any similar service covered by contract or charter agreement and with valid franchise or permit from the Land Transportation Franchising and Regulatory Board (LTFRB).

The fare discount granted under this Act shall be available during the entire period while the student is enrolled, including weekends and holidays: Provided, That, in a case where a promotional fare, as approved by the concerned regulatory agency, is granted by a public transportation utility operator, the student shall have the option to choose between the promotional fare and the regular fare less the discount as provided under this Act.

Section 5. Student Fare Discount Privilege. -A student under this Act shall be entitled to a grant of twenty percent (20%) discount on domestic regular fares, upon personal presentation of their duly issued school identification cards (IDs) or current validated enrollment form, supported by the prescribed government-issued identification document, subject to an appropriate verification mechanism to be provided in the implementing rules and regulations (IRR): Provided, That in the case of air public transportation utilities, the discount shall only apply to the base fare or the price of the ticket before taxes and costs for ancillary services.

Section 6. Prohibition 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 public transportation utility, or under other existing laws, or in combination with other discount programs or incentives.

Section 7. Tax Deduction. -The public transportation utility operator may claim as tax deduction the student fare discount herein granted 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 tax deduction net of value-added tax, 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, as amended.

Section 8. Additional Relief or Support for the Public Transportation Utility Operator and Driver. -The foregoing provision notwithstanding, the appropriate government agencies in charge of regulating the fares, especially for public land transportation, may determine and provide under the IRR of this Act other alternative ways, such as, but not limited to, reduction or exemption from some regulatory fees and charges, to provide additional relief or support for the benefit of public transportation utility operators, including the drivers, with the end view of mitigating the impact of the discount given.

Section 9. Filing of Complaints. -A student who is refused the fare discount privilege under this Act may file a complaint with:

These agencies and offices are hereby authorized to impose the penalties provided for in Section 10 of this Act to public transportation utilities that refuse or fail to grant the student fare discount privilege.

Section 10. Penalties. -After due investigation and finding the complaint against any public transportation utility to be true and valid, the following penalties shall be imposed as herein specified:

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.

Section 11. 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.

Section 12. Implementing Rules and, Regulations (IRR). -Within ninety (90) days from the effectivity of this Act, the LTFRB for land transport, MARINA for sea/water transport, CAB for air transport and the DOTr for rail transport shall respectively promulgate the IRR covering their sectors, taking into consideration the government central identification platform, in consultation with the Department of the Interior and Local Government, Department of Finance, Bureau of Internal Revenue, Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority, Philippine Statistics Authority, other concerned government agencies, public transportation utility operators and stakeholders.

Section 13. Separability Clause. -If any portion or provision of this Act is declared invalid or unconstitutional, the provisions not affected thereby shall remain in full force and effect.

Section 14. Repealing Clause. -All laws, decrees, executive orders, proclamations, rules and regulations, and other issuances or parts thereof that are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 15. Effectivity. -This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

Approved,

(Sgd) VICENTE C. SOTTO III
President of the Senate

(Sgd) GLORIA MACAPAGAL-ARROYO
Speaker of the House of Representatives

This Act which is a consolidation of Senate Bill No. 1597 and House Bill No. 8885 was passed by the Senate of the Philippines and the House of Representatives on February 6, 2019 and February 7, 2019, respectively.

(Sgd) MYRA MARIE D. VILLARICA
Secretary of the Senate

(Sgd) DANTE ROBERTO P. MALING
Acting Secretary General
House of Representatives

(Sgd) RODRIGO ROA DUTERTE
President of the Philippines

Approved: April 17, 2019.