The Philippine Star

P25 B from road tax eyed for PUV mod­ern­iza­tion

- Land Transportation Office · House Committee on Ways and Means

A bill has been filed in Congress to use some P25 bil­lion of the road users’tax to fund the pub­lic util­ity ve­hi­cle (PUV) mod­ern­iza­tion pro­gram, help re­duce pol­lu­tion and im­prove fuel ef­fi­ciency and road safety.

Al­bay Rep. Joey Sal­ceda filed House Bill 4695 ti­tled “Mo­tor Ve­hi­cle Road User’s Tax Act” which seeks a 300-per­cent in­crease in the road user’s tax, of­fi­cially called mo­tor ve­hi­cle user’s charge (MVUC), which is col­lected by the Land Trans­porta­tion Of­fice from the an­nual reg­is­tra­tion of mo­tor ve­hi­cles.

The pro­posal goes against moves to abol­ish the MVUC be­cause of its chronic mis­use and cor­rup­tion scan­dals.

There are cur­rently more than 11 mil­lion mo­tor ve­hi­cles reg­is­tered in the coun­try, ac­cord­ing to Sal­ceda, chair of the House ways and means com­mit­tee.

He said the pro­posed 300 per­cent hike in the mo­tor ve­hi­cle road user’s tax (MVRUT) on all types of ve­hi­cles amounts to a rea­son­able and op­ti­mal in­crease, con­sid­er­ing that the MVUC has not been ad­justed since 2004.

RA 8794 grants the Pres­i­dent the au­thor­ity to ad­just the MVUC rates an­nu­ally, a pre­rog­a­tive that was never ex­er­cised since the law’s en­act­ment in 2004. As a re­sult, the MVUC pro­ceeds that was sup­posed to fi­nance in­fra­struc­ture projects was not max­i­mized, Sal­ceda said.

To cush­ion the im­pact of the 300 per­cent hike, Sal­ceda said it would be im­ple­mented in phases from 2020 to 2022.

Un­der HB 4695, Sal­ceda ex­plained, in­cre­men­tal rev­enues from the MVRUT in­crease will help fi­nance PUV mod­ern­iza­tion and the uni­ver­sal health care.

The mod­ern­ized PUV is a trust­wor­thy mode of trans­port, with ef­fi­cient fuel con­sump­tion and there­fore, re­duced pol­lu­tion.

HB 4695 seeks to pro­mote ef­fi­cient move­ment of peo­ple by pro­vid­ing PUV driv­ers and op­er­a­tors op­por­tu­ni­ties to mod­ern­ize their fleets through sub­stan­tial eq­uity sub­si­dies.

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