House okays higher Road User’s Tax

A TAX measure that would hurt motor vehicle owners was approved in the House of Representatives.

House Bill No. 6136, which got 240 affirmative votes and five negative, seeks to increase the motor vehicle user’s charge (MVUC) or the road users’ tax rates starting this year.

The bill updates the rates of the Motor Vehicle Road User’s Tax (MVRUT) and significantly expands funding for the public utility vehicle modernization program (PUVMP).

Albay Rep. Joey Salceda is the principal author of the measure.

“Ito pong tax na ito, napaka progressive. Mayaman ang magbabayad. Mahirap ang makikinabang. And we expect it to help ease transport conditions for everyone by contributing to safer road infrastructure, and by expanding the PUV modernization,” Salceda said.

Salceda said the bill even got the support of the transport sector and transport advocates.

The MVURT rate adjustments are: for private and government vehicles 30 percent annual rate increase for three years; rates for utility vehicles, SUVs, trucks and trailers is based on per kilogram of gross vehicle weight (GVW) – 1.40/kg for 1st year; 2.50/kg for GVW for second year and 3.40/kg of GVW for third year.

A lower rate is charged for vehicles for hire and is pegged at 50 percent of the MVURT rate for private and government vehicles.