Title
Student Fare Discount Act
Law
Republic Act No. 11314
Decision Date
Apr 17, 2019
The Student Fare Discount Act in the Philippines provides a 20% discount on domestic regular fares for enrolled students, aiming to promote equal access to quality education and transportation for underprivileged students, while imposing penalties for non-compliance and fraudulent claims.

Law Summary

Declaration of Policy

  • Constitution mandates the State to protect and promote the right to quality education accessible to all.
  • Establishes mechanisms for mandatory student fare discounts.
  • Seeks cooperation of public transport utilities to assist students as a social responsibility.
  • Encourages underprivileged students to pursue education for a secure future.

Definition of Terms

  • "Student": Filipino citizen enrolled in authorized elementary, secondary, technical-vocational, or higher education institutions; excludes postgraduate and informal short-term courses.
  • "Public transportation utilities": Common carriers transporting passengers or goods for compensation by land, sea, or air.
  • "Public transportation utility operator": Entity/person with a Certificate of Public Convenience (CPC) to operate as a common carrier.

Coverage

  • Covers all public transportation types including buses, jeepneys, taxis, tricycles, trains, aircrafts, marine vessels.
  • Excludes school service, shuttle, tourist service, and contracted or chartered services with valid LTFRB permits.
  • Discounts valid throughout student enrollment, including weekends and holidays.
  • Students may choose between promotional fares or discounted regular fares.

Student Fare Discount Privilege

  • Twenty percent (20%) discount on domestic regular fares.
  • Requires presentation of valid school ID or current enrollment form plus government ID.
  • Verification mechanism to be detailed in IRR.
  • For air transport, discount applies only to base fare before taxes and ancillary fees.

Prohibition on Availment of Double Discounts

  • Students cannot claim discounts if higher discounts exist from other laws or programs.
  • Discounts cannot be combined.

Tax Deduction

  • Operators may claim the cost of student fare discounts as a tax deduction from gross income.
  • Discounts must be properly documented and comply with the National Internal Revenue Code.

Additional Relief or Support for Operators and Drivers

  • Government agencies regulating fares may provide alternative relief measures to operators and drivers.
  • Examples include reduction or exemption from regulatory fees to mitigate discount impact.

Filing of Complaints

  • Students denied discounts may file complaints with:
    • LTFRB (land transport except tricycles)
    • MARINA (sea/water transport)
    • CAB (air transport)
    • DOTr Legal Service (rail transport)
    • Local government chief executive (tricycles)
  • These authorities may impose penalties on violators.

Penalties

  • Upon verified complaint, penalties for refusal or failure to grant discount include:
    • Land transport drivers: suspension of license escalating from 1 month (1st offense) to 3 months plus fines for subsequent offenses.
    • Land transport owners/operators: fines from P5,000 to P15,000; impounding and CPC cancellation for repeated violations.
    • Sea/water operators: escalating fines from P5,000 (1st offense) to increments of P10,000 beyond the third offense.
    • Air operators: fines from P50,000 (1st offense) to P150,000 plus additional sanctions.
    • Rail utilities: must provide designated student fare booths; violations fined under existing civil service rules or similar fines as sea/water operators.
  • Cancellation or revocation of CPC, permits, franchises possible upon repeated offenses.

Use of Falsified Identification and Misrepresentation

  • Use of fake IDs or fraud to avail discounts will result in denial of privilege and possible civil or criminal liabilities.

Implementing Rules and Regulations (IRR)

  • Within 90 days of effectivity, LTFRB, MARINA, CAB, and DOTr must promulgate IRR for their sectors.
  • IRR development to involve relevant agencies and stakeholders ensuring proper verification, including use of government ID platforms.

Separability Clause

  • If any part of the Act is declared invalid, remaining provisions continue to be effective.

Repealing Clause

  • Any inconsistent laws, orders, or rules are repealed or modified to conform with this Act.

Effectivity

  • Takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.

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