‘MVUC transfer to general fund in CTRP plan’
THE abolition of the Road Board, as well as the transfer of its funds from the collection of the Motor Vehicle Users Charge (MVUC) to the government’s general fund, is already covered by the original proposal of the Department of Finance under its Comprehensive Tax Reform Program (CTRP), the DOF chief said on Monday.
Finance Secretary Carlos G. Dominguez III said making the current and future funds of the Road Board part of the general fund will ensure that their appropriation is scrutinized by lawmakers as part of the normal budgeting process. The proposal ensures the accountability and transparency in the use of the fund. “We want the current and future funds now earmarked for the Road Board to be part of the general fund, which will then be appropriated by the legislature as part of the normal budgeting process and not allocated by an un-elected board, which lessens the transparency on the use of the
funds,” Dominguez said.
Under Package 1B of the CTRP, or the other half of the Tax Reform for Acceleration and Inclusion (TRAIN) law, reforming the MVUC or Road User’s Tax calls for adjusting its rates to account for inflation and simplifying it by collapsing the multitude of rates into a single one based on weight.
The abolition of the Road Board —which is authorized under Republic Act 8794, or the MVUC law to manage and utilize the MVUC funds—was also part of Package 1B of the Duterte administration.
Finance Undersecretary Karl Kendrick T. Chua explained that because both the Senate and the House of Representatives had already approved a bill abolishing the Road Board, the DOF found it unnecessary to include in its September 20, 2018, letter to Congress a request for its abolition, and detailed instead the remaining tax- reform proposals under the CTRP, which it asked lawmakers to approve.
“Both the House and Senate passed the bill on the abolition of the Road Board, which was in response to our proposals as outlined under Package 1B of the CTRP. As Congress already passed this proposal, the DOF’s September 20, 2018 letter to the House leadership requesting it to pass the remaining tax packages expectedly does not include the Road Board abolition. The DOFproposed restructuring of the MVUC does include the transfer of the road fund to the general fund,” Chua said.
Chua issued the clarification after a congressional leader erroneously pointed out earlier that even the DOF did not want the Road Board abolished because its September 20 letter to the House did not mention this when it formally asked for the restructuring and adjustments in the MVUC as part of its appeal for the approval of Duterte administration’s remaining tax reform packages.
Last September 12, the Senate adopted the House version on the Road Board abolition to dispense with the bicameral conference process. The House, however, rescinded its approval of the bill on third reading on the same day, Chua recalled.
On top of reforms in the MVUC, the DOF’s proposed Package 1B also includes the lifting of bank secrecy laws, the automatic exchange of tax information and the implementation of three types of amnesties.
The DOF proposal to adjust the MVUC rates to account for inflation, as the fees have been frozen since 2004, and the transfer of the road fund to the general fund, remains pending in the House public works committee, while the Senate has yet to file a counterpart measure, according to Chua.
“While the transfer of the road funds to the general fund will improve the transparency and accountability of its use, it does not add any revenue at all, as the MVUC is also part of the existing revenue base,” he added.
The Land Transportation Office (LTO) is responsible for the collection of the MVUC from all owners of motor vehicles as part of the annual vehicle registration process.
Collections of the MVUC are deposited into four special trust accounts established by the Bureau of the Treasury namely: the Special Road Support Fund; Special Local Road Fund; Special Road Safety Fund; and Special Vehicle Pollution Control Fund.
On Sunday, the leadership of the House of Representatives backed President Duterte’s pronouncement to use over P40 billion in collections from the controversial Road User’s Tax to end the problem of flooding.
Andaya, Villafuerte
IN a statement, Majority Leader Rolando G. Andaya Jr., said the lower chamber will designate its contingents to the bicameral conference committee reviewing the bill abolishing the Road Board on January 14, 2019.
Andaya’s fellow Bicol legislator on Monday called on Bicolanos to support President Duterte’s move on the Road Board abolition and the transfer of its funds to floodcontrol projects in disaster-prone areas of the Bicol region, which could help their constituents, specially farmers.
Camarines Sur Rep. Luis Raymund F. Villafuerte Jr. said that CamSur is the No. 6 rice-producing province despite the chronic flooding.
“The province could probably become No. 2 or No. 3 producer if the flood problem could be solved once and for all,” he added.
According to Villafuerte, Camarines Sur is Bicol’s lowest-lying area, making it a catch basin for floodwaters coming from other provinces whenever typhoons strike the region.
“I call on my fellow Bicolanos to give their 100-percent backing to President Duterte’s decision to abolish the graft-ridden Road Board, more so after his commitment in CamSur last week to put the Board’s multibillion-peso funds to better use, particularly for flood-control projects in the disaster-prone region,” Villafuerte said in a statement.
During a situation briefing held in Pili, Camarines Sur, in the aftermath of Tropical Depression Usman, Villafuerte suggested to the President the the dredging and desilting of the Bicol River.
Villafuerte said that, when he broached this proposal, Duterte then declared he was bent on having the corruption-ridden Road Board abolished and have its funds utilized for flood-control projects, particularly in the Bicol region.
The bill that seeks to abolish the Road Board and its funds transferred to the government’s general fund is currently mired in Congress because of conflicting positions of the Senate and the House of Representatives on the measure. Under the law creating the Road Board, the fees collected from the MVUC shall be used exclusively for road maintenance, road safety and air pollution control projects.
Moreover, Villafuerte said, among the other suggestions raised during the meeting was the creation of a Bicol River Development Authority, which will be in charge of overseeing floodcontrol programs in coordination with the concerned local government units (LGUs) and the Department of Public Works and Highways (DPWH).
The House Committee on Government Reorganization has already approved a bill authored by Villafuerte reviving the Bicol River Development Authority.
Education Secretary Leonor Briones informed the President during the meeting that such an agency existed in the Marcos administration, but it was eventually abolished, hence leaving no particular government office to take charge of dredging the Bicol River or implementing other flood-control projects there.
Resettlement
IN the same statement, Rep. Villafuerte said CamSur Gov. Miguel Luis Villafuerte told President Duterte at the same meeting that some 50,000 families were evacuated from the province’s flood-prone areas before Usman’s onslaught, and that the provincial government has committed to provide the evacuees a permanent resettlement community.
The provincial government will donate the land for the relocation site and has asked financial support from the national government for the construction of the permanent resettlement homes of the dislocated people.
The lawmaker, citing a report, said a total of 126 people were reported dead from flash floods and landslides caused by Usman, while 26 others were reported missing.
The National Disaster Risk Reduction and Management Council reported that hardesthit Bicol had also suffered P2.9 billion in damages to agriculture and infrastructure.