It looks like motorists might have to shell out a lot more money when paying the Motor Vehicle User’s Charge (MVUC) in the future.
Recently, Rep. Jose Clemente ‘Joey’ Salceda filed House Bill No. 4695, or the ‘Motor Vehicle Road User’s Tax Act’. Under the said House Bill, it will result in a 33% increase in MVUC across all vehicles. Not only that, it will also see the 33% increase for the next three years.
According to Salceda, the increase will fund 50% of the Universal Health Care (UHC) Law. Meanwhile, the remaining funds will then be used for the Public Utility Vehicle Modernization program (PUVMP) until 2024.
Initially, Salceda stated that Php 8.1 billion will be collected from vehicle registration fees and taxes should it come into effect in 2020. For 2021 and 2022, he estimated that funding would increase to Php 9.6 billion and around Php 11 billion respectively.
A breakdown of the increase in MVUC is listed below:
The proposed law's revised MVUCs will result in almost double the current rates. For instance, a light vehicle (i.e. passenger car) with a GVW of up to 1600 kilos have a rate of of PhP 1600; the proposed law will almost double it to PhP 3056 by 2022. If you own an SUV that weighs up to 2700 kg, the current rate for it is PhP 2300; the proposed bill will almost double it too at PhP 4393 by 2022.
With the Road Board officially abolished last March 2018 under Republic Act No. 11239, who will collect and officiate the funds accordingly? That job goes to the National Treasury which will place the fund collected under a special account in the General Fund. Originally, the MVUC fund is used solely for the construction of new roads, as well as for the upgrading, repairing, rehabilitation of roads, bridges, and road drainage that are included in the General Appropriations Act (GAA).
But with the planned increase of the MVUC under Salceda’s new House Bill, it looks like the funds will have to be spread more evenly instead for the construction and maintenance of roads and other infrastructures.
The Road Board’s duties, obligations, and liabilities, have been transferred to the Department of Public Works and Highways (DPWH). The DPWH have also acquired the Road Board’s records, properties, assets, equipment, and additional funding.