The Land Transportation Franchising and Regulatory Board (LTFRB) announced Thursday that it has removed audited financial statements and annual income tax returns as mandatory requirements for operating and renewing public utility vehicle (PUV) franchises.

LTFRB chairperson Atty. Vigor D. Mendoza II said the measure aligns with President Ferdinand Marcos Jr.’s instructions to implement policies that promote the Ease of Doing Business in the country.

Mendoza stressed the decision will significantly help small players in the public transportation sector who struggle to comply with the extensive documentation needed for the issuance of a Certificate of Public Conveyance.

“Many of our colleagues in the transport sector have been complaining about the filing of audited financial statements and the annual income tax returns, and we understand them, which is why we promised to look into it,” Mendoza said.

He confirmed that based on the board’s review, these financial documents are not necessary for the operation of public utility vehicles.

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

Mendoza argued that requiring these documents goes against both President Marcos’ directive and Republic Act 11032, or the “Ease of Doing Act.”

The LTFRB issued a Board Resolution on 30 October, formalizing the change. The resolution stated that in line with the board’s commitment to continuously improve services through streamlined processes, it “deems it proper to dispense the filing/submission of Audited Financial Statement and/or Annual Income Tax Return In lieu of Annual Report.”

The new policy eliminates the annual filing of these documents as previously required under LTFRB Memorandum Circular Nos. 2018-002 and 2024-030.