House to conduct ‘intensive’ deliberations on proposed road user’s tax hike – Salceda » Manila Bulletin News

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House to conduct ‘intensive’ deliberations on proposed road user’s tax hike – Salceda


By Charissa Luci-Atienza

Albay Rep. Joey Salceda assured Wednesday that the Lower Chamber would conduct “intensive” deliberations on the proposed increase in the motor vehicle user’s charge (MVUC) or the road user tax.

Albay Representative Joey Salceda (ALI VICOY/ MANILA BULLETIN)

Albay Representative Joey Salceda (ALI VICOY/ MANILA BULLETIN)

The chairman of the House Committee on Ways and Means said they will fully scrutinize the measure or the the Package 1C of President Duterte’s Comprehensive Tax Reform Program (CTRP), as they are seeking a “more rational” MVUC.

“We are introducing a more rational motor vehicle user’s charge,” he said, at the sidelines of his panel’s deliberation yesterday on the substitute measure seeking to institute reforms in real property valuation and assessment in the country.

“We are not adopting the DOF version because that will give me 11 million enemies,” Salceda said.

The proposal of the Department of Finance (DOF) seeks to impose a unitary rate based on weight for all vehicles, private or government and for hire vehicles.

Salceda maintained that owners of motorcycles and tricycles will be spared from the planned road user tax hike. He estimated that that there seven million motorcycle owners.

The House leader noted that the MVUC rates have not been adjusted for inflation in the past 15 years.

“Basically, there is 91-percent inflation, so we will stagger it [increase] over three years but after three years, there will be a minimum price, fee for using our roads based on kilo. On the fourth year, all car owners should be paying P1.42 per kilo,” he said. He said there are four million owners of cars, sport utility vehicles, pick-up trucks, vans, and other vehicles.

“I don’t like seven million enemies. Because of the exclusion of the motorcycles, I have only four million enemies,” Salceda said.

He said with the proposed hike in MVUC rates, a vehicle owner is expected to pay a “minimum” fee of P2,300.

Salceda said his measure is “different” from the DOF proposal, which seeks to impose as much as P33,000 on some vehicle owners.

The DOF proposal seeks a longer phased-year period of three years to increase MVUC rates.
The proposed MVUC rates are as follows: P1.40 per kilogram of gross vehicle weight for year 1 (2020), P1.95 for year 2 (2021), and P2.50 for year 3 (2022).

Salceda said after the approval of the 2020 General Appropriations Bill (GAB), his panel will immediately conduct “more intensive” discussions on the tax reform package.

“Right after we approve the budget, we will conduct more intensive hearings because we need to hear all concerned stakeholders,” he said.

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