THE Land Transportation Franchising and Regulatory Board (LTFRB) announced the approval of a new policy that caps the booking or platform fees of app-based taxi services at 20 percent of the approved fare or P60, whichever is lower.
The policy, contained in Memorandum Circular 2026-055, will take effect after its publication in a newspaper of general circulation. The circular was issued under the guidance of Transportation Secretary Giovanni Lopez.
LTFRB Chairman Vigor Mendoza said the move was made following complaints about additional charges imposed on passengers.
Under the circular, the authorized booking or platform fee will apply uniformly to all taxi units using online transport platforms. The fee must be separately reflected and clearly disclosed in the fare computation, booking confirmation and electronic receipt issued to passengers.
It prohibits the collection of any booking fee, convenience fee, service fee, platform surcharge or similarly named charge beyond the authorized amount without prior approval from the LTFRB.
”There is a need to establish clear and uniform rules governing the imposition, computation, disclosure and collection of booking or platform fees in order to ensure transparency, protect the riding public, and maintain fair and reasonable transportation charges,” the circular read.
The circular applies only to taxi units and operators that facilitate passenger transport through digital or app-based booking platforms.
The LTFRB directed operators and platform providers to clearly disclose all fare components before a booking is confirmed, reflect all authorized charges in electronic receipts or trip summaries, maintain records of booking-related charges for inspection and submit reports required by the agency.
Violators may face administrative sanctions, including fines, suspension or cancellation of franchises or accreditations, and other penalties under existing laws and regulations.
