MINORITY LEGISLATORS said on Thursday that a bill raising the motor vehicle user charge (MVUC) will not raise sufficient revenue to support the government’s modernization program for public transport, while unduly burdening the middle class.
“It is important to note that a modern (jeepney replacement) will cost more,” Assistant Minority Leader and Gabriela Party-list Representative Arlene D. Brosas said, citing a cost estimate of P2.6 million.
Minority Leader and ACT Teachers’ Party-list Rep. France L. Castro added at a briefing that the MVUC will add to the burdens of vehicle owners, many of which borrowed to acquire their automobiles.
The MVUC bill seeks to amend Republic Act No. 8794 or the Motor Vehicle Users’ Charge law.
According to the bill, for-hire vehicles like cars, PUVs, buses, trucks and trailers are to receive a 50% discount on the MVUC, while motorcycles and tricycles will be exempt.
The House ways and means committee approved the bill on Tuesday.
Albay Rep. Jose Ma. Clemente S. Salceda, who chairs the committee, said revenue from the MVUC will finance the public utility vehicle (PUV) modernization program, providing 45% of incremental revenue, as well as the government’s road infrastructure and safety programs, which get 5%.
Finance Secretary Benjamin E. Diokno has said that the MVUC will raise up to P15.8 billion in revenue during its first year and P48.6 billion by the third year.
President Ferdinand R. Marcos, Jr. urged Congress to pass the MVUC bill in his State of the Nation Address on Monday.
Ms. Castro called instead for action to lower inflation by reducing the number of products subject to value-added tax. — Beatriz Marie D. Cruz
