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Thursday, Marcn fr, rOrO @
House approves bill raising road
users'tax on 3rd and final reading
HE House of Representatives has
approved on third and final reading
House Bill 6136 increasingtherates of
the MotorVehicle RoadUsers' Tax (MVRUT).
HB 6138 will now be transmitted to the
Senate for its own deliberations.
The measure seeks to optimiz€ the uti-
Uzation of the MVRUT, while raising add!
tional revenues to help fund government
programs for the prevention of deaths and
injuries due to road accidents, and to provide
assistance to victims of accidents.
It also seeks to help finance the Public
Utility Vehicle Modernization Program
(PUVMP) of the government.
The MVRUT rate adjustments are as fol-
lows: For private and government vehicld!,
there shall be a 30-percent annual rate in-
crease for passenger cars for three years.
Rates for all other vehicles namely utility
vehicles, SUVs, buses, trucks and trailers
would be based on per kilogram of gross ve-
hicle weight: 1.40lkg of GVW for first year,
2.50/kg of GVW for second year, 3.40lkg of
GVW for third year.
A lower rate is charged for vehicles for
hire is pegged at 50 percent of the MVRUT
rate for pdvate and government vehicles.
House Ways and Means Committee
.Chairman Joey Sarte Salcedi, principal au-
thor and sponsorofthe bill, saidthe measure
is expectedtoyieldan addif iq4glgovernment
revenues of P12.14 bi ion iiii2020, P30.6
pAga - A,3 '
billion in 2O2!, P48.08 billion in 2022,
P54.17 billion in 2023 and P60.9 billion
in 2024. To ensure that inflation does not
erode the value of revenues, an anndal in-
crease of 5 percent is imposed by January
1, 2023, through revenue regulations to be
issued by the secretary of Finance.
Salceda said that the rich will primarily
pay for the tax, saying "55.6 percent of all
cars are owned by the top 10 percent of the
population, while only l.Tpercent are owned
by the bottom 30 percent. T'his makes this
tax ext{emely progressive, Let's make the
primary roadusers pay for roaduse."
"More important, 50 percentof incremen-
tal revenues will finance modernization of
public-utilityvehicles and government pro-
grams to be undertaken for the prevention
of death due to road accidents and accident
victims' assistance," Salceda added.
The bill mandates the imProvement
of existing drivers' education programs,
training academies and drivers' Iicense
examinations by the Land Transporta-
tio! Office; and while providing addi-
tional motor vehicle inspection centers.
It also mandates the improvement of ex-
isting road networks by the Road Man-
agement Systems of the Department of
Transportation.
The bill establishes emergency care fa-
cilities in areas with high incidence of road
accideris- tov€€ lluie ll. dela kuz