The looming implementation of the Tax Reform Bill, that includes an increase in the excise tax automobiles, may not be the only factor that will raise prices of vehicles in the near future.
House of Representatives Deputy Speaker Sharon Garin has just filed House Bill 3928, which will amend Republic Act 8794 or the Motor Vehicle User’s Charge Law.
Under the bill, the second vehicle purchased by a motorist shall have a motor vehicle user's charge (MVUC) that’s 30-percent higher for the first year, 60-percent for the second year, so on and so forth.
For the third and succeeding vehicles registered, the MVUC will be increased at a rate that follows a specific 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," said Garin.
The bill aims to address the growing volume of vehicles in Metro Manila, which now stands at 2.7 million units, imposing higher MVUC rates on motorists who own and register more than one vehicle.
"This bill is in conjunction with other measures of improving access roads and government projects in addressing the traffic situation," Garin added.
Government agencies tasked to execute and draw up implementing rules and regulations will be the Department of Transportation and the Department of Public Works and Highways.