Hike in motor vehicle user’s charge urged » Manila Bulletin News

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By Charissa Luci-Atienza 

To ease the traffic situation in the metropolis, a woman House leader is proposing the imposition of higher motor vehicle user’s charge (MVUC) for every additional vehicle purchased.

House of Representatives.
(Credits: Houstimowparagas.files.wordpress.com | Manila Bulletin File Photo)

Deputy Speaker Sharon Garin of AAMBIS-Owa party-list filed House Bill 3928, proposing amendments to the current law on charges to owners of all types of motor vehicles or Republic Act 8794.

“The more vehicles owned and registered, the higher the motor vehicle user’s charge (MVUC) imposed,” she said.

Citing the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), Garin said the Philippines is seen as an important automotive market growth area in the region as the volume of vehicles sold is expected to surge.

Domestic vehicle sales in 2020 would account to between eight percent (8%) to ten percent (10%) of the projected total sales of five to six million units within member economies of the Association of Southeast Asian Nations (ASEAN), according to CAMPI.

“This bill seeks to ease the volume of the vehicles by increasing the MVUC,” Garin said.

She laments that Metro Manila has been experiencing problems on traffic for more than 20 years now, quoting the Metropolitan Manila Development Authority (MMDA). Based on the MMDA data, almost 2.7 million vehicles ply through Metro Manila every day.

House Bill 3928 provides that 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 thirty percent (30%) for the first year, sixty percent (60%) for the second year, and so on.

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

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

She said that under her bill, the Department of Transportation (DOTr)  and the Department of Public Works and Highways (DPWH)  are tasked to make the necessary rules and regulations to prevent circumvention of the proposed bill such as naming the second and succeeding vehicles to other persons when in fact they have no capacity to buy such vehicle.

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

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