Chapter 1

INTRODUCTION

Background of the Study

As in many countries, Israel has hundreds of discounts for students, and it is

worth looking out for them if you are a student coming to visit. Many institutions,
museums, parks, attractions and shows will have separate prices for adults, children,
soldiers, the elderly and students (L.Sebastian.,2012). Each place has a different
standard of strictness for defining a student, and sometimes you can just say you are a
student, and if you look more-or-less the right age (under 30 – Israelis start university
later than other countries), you can get the discount (M.Smith.,2000).

Increasingly places in Israel are asking to see a student ID, so if you have a
student card from your country, or the international ISIC card, it makes things simpler.
Even if a place does not display a sign saying that they have discounts for students, you
have nothing to lose by asking (J.Parks.,2002).

While studying in the US may be expensive, being a student also means that you
will enjoy lots of perks and exclusive discounts. Armed with your student ID, you can
score deals on food, entertainment, shopping and plenty more (S.Wellington.,2009).
Here are some of the best bargains you can bag while studying in the US.What you
need to get the best deals. When you are studying in the US, your student ID should be
your constant companion. Not only do you need it to gain access to the library or the
dining hall but you also get great discounts when you show it at shops, restaurants or
cinemas (H.Martys.,2006).

Join UniDays to get student discounts with lots of different retailers when
shopping online. It is free to browse and as soon as you sign up for the newsletter, you
get the latest deals sent directly to your inbox (Winkler, W.G. 1992).

If you want to nab a few extra discounts from shops or travel companies, you can
get the Student Advantage Card for around $20 a year. If you also want to benefit from
your student status in your home country (and in many others for that matter), you can
purchase an International Student Identity Card. It is available in over 130 countries,
and costs between $4 and $25, depending on where you are from (2013 Tekki IS, et al.)
Thanks to your student ID, living on a budget does not mean you have to wear the
same old rags for the entire duration of your studies. Plenty of clothing stores in the US
offer discounts to college students, and some chains even accept your student ID in
branches abroad (Digafe RT, 2015). With your student ID, you get 15% off full-price, in-
store purchases (Zachary, 2007).

Student fare discount in the Philippines

What’s more challenging for students than passing Math and coming to school
on time? It’s making their allowance last. This is why student discounts are a welcome
opportunity to stretch one’s daily budget for school needs. Knowing where you can
score a student discount not only helps you save money but also trains you to be
financially smart—a trait that will be extremely useful after you graduate from college.
Students who present a valid school ID or proof of current enrollment can get a discount
on various products and services in the Philippines.
(https://www.sunstar.com.ph/article/132445).

Like senior citizens and persons with disability (PWDs), students in the
Philippines are entitled to discounts that help them save money and make their daily or
weekly allowance last.

Saving money matters a lot to students who have no full-time income-earning

capacity yet. So while you’re still studying in school, always bring your school ID and
take advantage of student discounts. Remember, every peso you’ll save
counts(http://repository.out.ac.tz/757/).

Student Fare Discount in Pangasinan

Filipino students in Pangasinan -- from elementary to college, as well as those

enrolled in technical-vocation schools --would be entitled to a 20-percent discount on
buses, jeepneys, taxis, tricycles, transport network vehicle services or TNVS, passenger
trains, aircraft, and marine vessels upon presentation of their duly issued school ID or
current validated enrollment forms. (LBG. abs-cbn news. 2019).

“All the student has to do is to present a valid school ID or his or her current
validated enrollment forms to avail of the fare discount. So now students will enjoy the
same privilege granted to our senior citizens and persons with disabilities,” he said.
 “This is a year-round benefit that students can avail so they can have discounted
fares whenever they want to go home to their families, even during holidays, he added.
Excluded from coverage of the law are individuals enrolled in dancing or driving
schools, short-term courses of seminar-type and post-graduate studies such as those
taking up medicine, law, masters and doctorate degrees, the senator further noted.
Duterte signed the “Student Fare Discount Act” on April 17 but was released only to the
media on Monday( https://www.accreditedschoolsonline.org/resources/transportation-in-college-
and-on-campus/).

Statement of the Problem

This study was undertaken to determine the level of implementation and

effectiveness of Student Fare Discount of 2019 in San Carlos City, Pangasinan for the
Calendar Year 2019-2020.

Specifically, it sought to answer the following questions:

1. What are the essential provisions of the Student Fare Discount of 2019 in the
Philippines?
What is the level of implementation of the provisions of the Student Fare
Discount Act in San Carlos City, Pangasinan for the Calendar Year 2019-
2020?
2. What is the level of effectiveness of the Student Fare Discount of 2019 in San
Carlos City, Pangasinan?
3. What is the degree of seriousness of some problems which prevented the
implementation and effectiveness of the Student Fare Discount 2019 in San
Carlos City, Pangasinan?
 4. What is the level of urgency of some recommendations to strengthen the
implementation and effectiveness of the Student Fare Discount Act in San
Carlos City, Pangasinan?

Significance of the Study

Pursuing this study was considered significant as the findings provided some
insights and information on Student Fare Discount Act of 2019 to the following:

Student – The result of this study will benefits all the students that can avail this
privilege, they will become more aware of all the information they need.

Parents – The result of this study can help them to budget the needs of their children
especially on their transportation fees.

Driver operators – The result of this study will be able to inform the driver on how to
argue to those students who is not covered by this law.

Traffic enforcers – The result of this study can help the traffic enforcers on how to
handle such violation of this act if ever it happens in their jurisdiction.

The Traffic Enforcers Team Leader – The results of the study could provide
necessary information in the formulation of plans and policies in the
achievement of its objectives and goals.

City Government Planners – The study would serve as a guide in the full
implementation of this act, by amending city ordinances that will serve to
support the Student Fare Discount Act.

Researchers – This study could provide us a knowledge that can be used to help the
local government in the better implementation of Student Fare Discount Act.

Future Researchers – This study could provide future researchers insights and
valuable data for further studies like surveys.
Scope and Delimitation of the Study

This study was undertaken to determine the level of implementation and

effectiveness of the Student Fare Discount Act in San Carlos City for the Calendar Year
2019. Respondents would be all from San Carlos City, Pangasinan consisting of 25
Public Utility Drivers, 25 Students, 20 Concerned Citizen, 10 POSO Officers,10 PNP
Officers and 10 Barangay Officials.

Definition of terms

Student refers to any Filipino citizen currently enrolled in a duly authorized elementary,
secondary, technical-vocational, or higher education institution. The term
does not include those enrolled in post graduate degree courses and informal
short-term courses such as dancing, swimming, music and driving lessons and
seminar type courses.

Public transportation utilities refer to all Philippine common carriers engaged in the
business of carrying or transporting passengers or goods by land, sea/water
or air, for compensation, offering their services to the public.

Public Transportation Utility Operator refers to the person or entity granted with a
Certificate of Public Convenience by a regulatory agency to operate as a
common carrier.
 Chapter 2

REVIEW OF RELATED LITERATURE

This chapter would present a summary of some related literature and studies that
have direct bearing with the present study.

I. BOOKS

A. Foreign

People may argue about the pros and cons of student fare discount but none of
the literature reviewed for this research questions the fact that ridership will increase
when fare discount policies are implemented(De rozan, TR. 1990). No matter what
types of experiments, demonstrations or permanent programs have been implemented,
public transportation systems have experienced significant increases in ridership when
implementing student fare discount policies(Winkler, WG. 1992 ).

Students currently enjoy a 20% discount on regular fares of public utility vehicles
through a memorandum circular of the Land Transportation Franchising and Regulatory
Board, but it is only applicable during the school year, from Mondays to Fridays. With K
to 12, we will have more students attending enhancement classes (2013 Tekki IS, et
al.). More students will avail weekend and summer classes. Some universities already
began adjusting their academic calendars. This affects not only the school months, but
also the semestral break and summer vacation (Digafe RT, 2015).

B. Local

There are lots of negative effects of student fare discount in driver operators
accordingly. Jeepneys, tricylces, UV Express are operated by ordinary drivers and small
operators. During summer vacation and Christmas, these drivers earn even less. Cited
jeepney drivers as example. As it is, they only earn an average of P200 ($4.54)* to
P300 ($6.80) per day – lower than the P466 ($10.56) minimum wage. They will earn
even less, he said, if they give students discounts during vacation breaks(Demetria,
2015).

Jeepney operator sectors were one of the poorest in terms of public utility
transportation that’s why they were also the most affected after the implementation of
Student Fare Act. Student group National Union of Students of the Philippines (NUSP)
said the bill needs further review that will put into consideration not just students, but
also Filipino families(Manalo,2015).

II. MAGAZINES, STUDIES, JOURNALS, NEWSPAPERS

A. Foreign

Elementary to college students get a discount on buses, jeepneys, taxis,

tricycles, the MRT and LRT, airlines, passenger ships, and transport network vehicle
services every day of the week while they are enrolled. Commuting and traveling will
now be lighter on students' pockets, thanks to a newly-signed law.

Under the new measure, all Filipino students – from elementary to college,
including technical-vocational school students – will get a 20% discount on all forms of
land, air, and sea transportation, for the entire time they are enrolled, including
weekends and holidays. For air and sea travel, the discount will only apply to domestic
travel. Previously, an existing discount scheme covered only land transportation.
(newyorkdailymagazine,2008).

The discount covers buses, jeepneys, taxis, tricycles, the LRT and MRT, airlines,
passenger ships, and transport network vehicle services (TNVS) like Grab. Students
just have to show their school ID or a validated enrollment form together with a
government-issued ID. However, the discount cannot be availed of by post-graduate
students (medicine, law, masteral, doctoral) or those enrolled in short-term classes like
students of dancing and driving schools and seminars.

Sweetening the deal is an exemption from paying travel tax when students travel
abroad by plane or passenger ship for education, training, or to participate in a
competition. The student passenger would have to show travel authorities a document
proving they are traveling for any of those purposes(worldwideissue,2014).
B. Local

Excluded from coverage of the law are those enrolled in dancing or driving
schools, short-term courses of seminar type and graduate studies such as those taking
up medicine, law, masters and doctorate degrees. Land, water and air transportation
utilities that refuse to grant discounts to students may be slapped with penalties,
including suspension of driver’s license up to three months and fines from P5,000 up to
P150,000. Over 30 million students will benefit from the Student Fare Discount Law that
grants them 20 percent reduction on all public
transportation(https://www.philstar.com/headlines/2019/07/16/1935155/law-signed-
giving-20-fare-discounts-students#GhZvoL4QLOZ8o7WF.99).

Every day, more than 30 million students from elementary to college travel to and
from schools, so the enactment of the law is a big help for them and their families. The
Land Transportation Franchising and Regulatory Board (LTFRB) warned that it will
impose sanctions against drivers and operators of public utility vehicles (PUVs) that will
not grant a fare discount of 20 percent to students as classes resume Monday.

To all PUV drivers particularly UV Express, buses and jeepneys: It’s now the
season of school opening. Students must be given 20 percent discount. Otherwise if we
receive reports of violations, we will not hesitate to sanction you. The LTFRB imposes a
fine of PHP5,000 for first offense, PHP10,000 fine and 30-day impoundment of vehicles
for second offense and a fine of PHP15,000 and cancellation of franchise.
 The Board urges students or any commuter to take videos or pictures showing
the plate number and type of PUVs that do not provide fare discounts and post them
through the official social media accounts of LTFRB. If want the case to proceed a
formal complaint is needed to be filed which is part of due process and our public
assistance will guide them(Business Mirror , March 2018).

If only want to post and let us know the most that we can do is call the attention
of the operator. In any courts, we need to hear the other side because if they post a
picture and there is no formal complaint, it is not fair to the operator if we call for a
hearing and nobody is complaining.

The LTFRB has released Memorandum Circular No. 2017-004 last October,
allowing students to avail of fare discounts, including during weekends and holidays.
Post-graduate students still need to pay in full, such as students studying medicine, law,
as well as those taking master’s degree or doctorate(Philippine Daily Inquirer,2009).

III.INTERNET SOURCE

A. Foreign

THE House Committee on Transportation’s Monday discussions on student fare

discounts continued with resource persons calling the tax relief scheme for transport
operators unworkable. The technical working group, led by Committee chair Cesar V.
Sarmiento of Catanduanes, tackled nine bills, proposing a 15 to 20% discount to
students on regular fares on all modes of transportation. They have to thresh out the
issues, in order for us to come up with a substituted and consolidated bill that will
embody all the concerns we wish to address. Noted that the committee plans to
approve the Substitute Bill on Wednesday. Its counterpart version, Senate Bill 1597,
has been approved on third reading.(http;//www.foxchannel.int/news-room/fact-
sheet/fare/2018).

Among the contentious provisions discussed by the panel was the grant of a tax
deduction to transportation utilities. Informed that in the Committee Report, there was a
particular provision pertaining to tax deductions, but when it was approved in the
Senate, this particular provision was taken out.

Doubts were raised over “the administrative feasibility of these tax

deductions” by a Finance Department official. Before claiming any tax deduction or
credit to the BIR (Bureau of Internal Revenue), must be able to present evidence or
proof that it’s really the students who were granted discounts. Noted that presenting
proof, such as the issuance of an official receipt (OR), would be particularly difficult for
jeepney drivers. Noted also that government is expected to forego up to P2.4 billion in
taxes from jeepneys fare discounts alone.(http;//www.rtv.int/news-room/fact-
sheet/fare/2017).

The range of assumptions puts the revenue loss at between P0.5 billion and P2.4
billion from jeepney fares. Land Transportation Franchising and Regulatory Board
(LTFRB) member and lawyer proposed that the tax deduction be applied to public utility
vehicles capable of issuing official receipts while others may be granted separate forms
of assistance(https://www.bworldonline.com/tax-relief-scheme-questioned-in-student-
fare-discount-bills/).

B. Local

The fare hike and the student discount removal will force many students to cut
short on their daily travel and may further discourage students from continuing their
studies. More reasons are barring students to go school. Amid looming tuition and
miscellaneous fee hikes this June, public utility jeepneys and buses will increase their
minimum fare by P2 starting May 26. Worse, the Land Transportation Franchising and
Regulatory Board (LTFRB) will also revoke student fare discounts during weekends,
holidays and school breaks.

The impending fare hike and discount removal will add at least P113.60 in
students' monthly transportation expenses. An ordinary student will shell out a minimum
P90 per week for a short round trip during weekdays once the fare hike is implemented.
The minimum student fare, which enjoys a 20 percent discount, will swell by P1.50 from
its present P4.40 discounted rate. At present, a student spends at least P246.40 per
month for transportation, based on the P4.40 discounted rate.
(http;//www.rappler.int/news-room/fact-sheet/fare/2018).

Anak ng Bayan (nation’s youth) vice president, criticized LTFRB's decision to

increase fare by P2, saying a fare hike amid rising cost of education and other basic
services is unbearable for ordinary students and their parents. Chided the transportation
board for its "lack of careful research and consultation from affected sectors," pertaining
to its pronouncement lifting student discounts during holidays, weekends and vacation
period. The LTFRB should have consulted student groups before making the decision.
This move to lift student discount is burdensome to ordinary students who have no other
source of income other than their daily or weekly allowances. Besides, there are still
classes on Saturdays and during summer and other school functions during the
weekend. Consequently, students who have classes during weekends and those who
are attending summer classes will now have to pay the P7.50 minimum fare. This
means that a student will at least spend P30 for a back-and-forth, short route during
weekends. This doesn't even include the transportation expenses for students who
regularly go home to their provinces during the weekends. With the removal of student
discounts on weekends, they will also be paying the higher fare rate. An ordinary
student will now have to shoulder a minimum of P360 in transportation expenses alone
every month. Currently, a student spends a minimum of P246.40 every month at current
fare rates(https://www.bulatlat.com/news/5-15/5-15-fare.htm).

Chapter 3
 RESEARCH AND METHODOLOGY

In this chapter, the researcher would present the description of the research
method used, a profile of respondents, the instruments used to gather data, the data-
gathering and the statistical treatment of data.

The Research Design

The descriptive survey-method was used in this investigation with the primary
purpose of ascertaining conditions, which were common among the population of the
study. The researcher made use of the questionnaire-checklist and simple interview as
the instrument gathering the data needed for the study.

The Respondents

There are 100 persons who acted as a respondents for this study, namely:

Table 1
 Distribution of the Respondents of the study
Respondents Number of Respondents
Students 25
Public Utility Drivers 25
Concerned Citizen 20
Police Officers 10
Barangay Officials 10
POSO 10
Sub-Total 100

The Research Instrument

The researchers formulated a questionnaire-checklist / simple interview under

the guidance and assistance of Office of local Chief Executive and LTO/LTFRB San
Carlos City. They put into use the information and ideas that they provided about the
construction of data-gathering instrument. Expert opinions of knowledgeable persons
were also solicited.

Administration and Retrieval of the Questionnaire

To validate their questionnaire, the researchers sought advice of their College

Dean and key officials of the city who had extensive knowledge on the Student Fare Act
in San Carlos City. The researchers made a Questionnaire to perform such survey
gathering-data for the 100 respondents to answer in San Carlos City since the POSO
has no questionnaire available for this particular survey.
 The questionnaire was administered during operation hours of City Hall in San
Carlos City on December 2019.

Retrieval of the questionnaire from the respondents was 100 percent since the
researchers administered the data-gathering instrument personally.

Statistical Treatment of Data

The data gathered through the questionnaire-checklist/ simple interview; and

their answers were then tabulated, consolidated and collated for easy interpretation in
the form of tables and textual presentation. In the statistical presentation of data,
percentage, ranking and weighted average used.

Percentage was used to denote proportion between the numbers of respondents

giving a response to a particular item to the population of the study.

Ranking was used specifically to denote the hierarchal importance of the data
based on the number of responses or respondents.

Paradigm of the Study

I
INPUT PROCESS OUTPUT
Questionnaire and Tabulation Profile of the
preparation of Analysis and Respondents
interview guide Interpretation of
Data Contributing
Distribution of Factors
questionnaires and
interview of key Proposed
personalities strategies

Figure 1: Schematic diagram showing the different variables of the study