The Land Transportation Office (LTO) recently released Memorandum Circular No. JMT-2023-2390. It’s also known as the ‘Omnibus Guidelines on the Accreditation, Supervision, and Control of Driving Institutions, and the Standardization of Driver and Conductor’s Education’. While it sounds like a mouthful, it essentially covers the maximum prescribed fees for driving schools, along with the penalties for those who do not comply.
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MC No. JMT-2023-2390 will take effect come April 15, 2023. However, some driving schools are urging the LTO to postpone its implementation. The Association of Accredited Driving Schools of the Philippines, Inc. (AADSPI) said if the price caps take effect on LTO’s target date, it "may affect the quality of services we deliver" and "requires to use a new system with insufficient preparation to its stakeholders."
Under the current guidelines, these are the rates that the LTO came up with:
For motorcycle driving courses:
Theoretical driving course (TDC) – P1,000
Practical driving course (PDC) – P2,500
For light vehicle driving courses:
Theoretical driving course (TDC) – P1,000
Practical driving course (PDC) – P4,000
For heavy vehicle driving courses:
Theoretical driving course (TDC) – P1,000
Practical driving course (PDC) – P8,000
AADSPI says the LTO needs to have a dialogue with the driving schools to, at the very least, come up with a middle ground solution. The association said there was supposed to be one prior to its implementation. Instead, the AADSPI had this to say:
“A consultation with the stakeholders took place in March 2023 – however, instead of a dialogue, LTO used the event to announce the fees they plan to impose on our services despite our pleas. Soon after this supposed consultation, LTO released directives that LTO-accredited Driving Schools should follow the fee structures they have announced regardless of how varying the types of services provided.”
Indeed, the lower prices are welcome news for those who want to go to driving schools. However, the overhead costs of running this kind of business does need substantial cash flow. AADSPI mentioned fuel, maintenance of vehicles, interest and amortization of vehicles, insurance cost, salary and benefits of employees, training equipment and materials, marketing expenses, utilities, rent, and other upkeep.
In its closing statement, group said "AADSPI wishes to continue working with LTO to address all other concerns and find practical solutions that would further improve the quality of drivers' education and training in the Philippines.”
See the full statement here:
