‘Road users’ tax underutilized: study

THE funds collected through the motor vehicle users’ charge (MVUC), popularly known as road users' tax, is "underutilized," a government think tank has reported.

A study conducted by the Philippine Institute for Development Studies (Pids) showed the failure to fully utilize the collections was due to the lack of a definitive operating procedure system on how to identify and prioritize projects.

The authors of the study, Pids consultants Sheilah Napalang and Pia May Agatep, Pids senior research fellow Adoracion Navarro, and research associate Keith Detros underscored that the processes of identification, approval, and implementation of proposed projects are problematic.

"Project identification does not follow the prescribed procedures. The approach is bottom up, rather than top down, [thereby] failing to incorporate a network perspective of accident blackspots, and leading to projects that are not of the highest priority being approved and implemented," the authors explained.

The MVUC, which is imposed through the registration fees of vehicles and penalties for overloading and collected by the Land Transportation Office (LTO), is envisioned as a new source of funding to finance road maintenance and minimize air pollution. MVUC is considered the third biggest source of tax revenue for the government, contributing an additional 40 percent of available funds for maintenance of national roads. (SDR/Sunnex)