Solon wants higher motor vehicle user’s charge to ease volume of vehicles

MANILA-- A leader of the House of Representatives has filed a measure seeking to impose a higher motor vehicle user's charge (MVUC) for every additional vehicle purchased to reduce the huge volume of vehicles contributing to the perennial traffic problem in the metropolis.

Deputy Speaker Sharon Garin filed House Bill 3928, which proposes amendment to Republic Act 8794, or an act imposing a motor vehicle user's charge on owners of all types of motor vehicles.

Garin said the more vehicles owned and registered, the higher the motor vehicle user's charge (MVUC) should be imposed.

For the second vehicle of a person, the MVUC shall be twice the amount imposed under Executive Order 43 series of 1986 or Restructuring the Private Motor Vehicle Tax plus 30 percent for the first year, 60 percent for the second year, and so on.

As for succeeding cars, the MVUC shall be as imposed as many times in such sequence and rates in accordance to the given pattern and formula.

"Persons engaged in the business of transportation or whose business requires more than one vehicle is not covered by the increased rates," Garin said.

Garin pointed out that the volume of vehicles sold is expected to surge as the Philippines becomes a potentially important automotive market growth area in the region.

Citing the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), Garin said vehicle sales in 2020 would account to between 8 to 10 percent of the projected total sales of five to six million units within member economies of the Association of Southeast Asian Nations (ASEAN).

The lady lawmaker, however, noted that almost 2.7 million vehicles ply through Metro Manila every day and is thus hounded by traffic problems.

The Department of Transportation and the Department of Public Works and Highways will be the lead agencies in formulating rules and regulations to prevent circumvention of the proposed bill.

"This bill is in conjunction with other measures of improving access roads and government projects in addressing the traffic situation," Garin said.

Source: Philippines News Agency