For ordinary operators of passenger jeepneys and other public utility vehicles (PUVs), forcing them to file financial statements or income tax return is too much in exchange for a franchise.

The Land Transportation Franchising and Regulatory Board (LTFRB) finally saw the logic in their argument as it removed both the Audited Financial Statement and Income Tax Return as a requirement for the issuance of Certificate of Public Conveyance for PUV operators.

LTFRB chairperson Vigor D. Mendoza II said they already issued a Board Resolution to finalize their decision, which he described as a big help to small players in the public transportation sector that are struggling to keep up with documents to keep their franchise.

“Those in the transport sector have been complaining about this policy, and we understand their concerns and we made a promise to look into it,” said Mendoza.

In August last year, the LTFRB issued revised guidelines on the filing of Annual Audited Financial Statement/Income Tax Return of operators including those covered by Industry Consolidation under the Public Transportation Modernization Program (PTMP).

But during the recent deliberation, the LTFRB Board agreed that the mandatory annual Audited Financial Statement and Income Tax Return are not utilized in the daily functions of the Board, and is therefore, “an unnecessary document.”

“And based on our review, the filing of audited financial statements and annual income tax returns is not necessary for the operation of public utility vehicles,” said Mendoza.

Mendoza also argued that making Annual Audited Financial Statement/Income Tax Return as a requirement for the issuance of Certificate of Public Conveyance goes against the instruction of President Marcos on ensuring the ease of doing business in the country.

It is also embodied under Republic Act 11032 or the "Ease of Doing Act".

“In line with the Board's commitment to continuously improve the agency's efficiency in providing service to the public through streamlined processes and documentary requirements, the Board deems it proper to dispense the filing/ submission of Audited Financial Statement and/or Annual Income Tax Return In lieu of Annual Report,” the LTFRB Resolution dated October 30, 2025 read.

“Additionally, the annual filing of Audited Financial Statement and/or Annual Income Tax Report or Annual Report as required under MC Nos. 2018-002 and 2024-030 shall no longer be required.”

The same Board Resolution, however, emphasized that it may require a PUV operator to submit the same document when necessary.

The LTFRB Resolution is part of the measure to address the backlog in around 37,000 petitions pending before teh agency, some of them were filed more than two years ago.

Mendoza earlier vowed to address the backlog on all petitions and motions before the end of this year.