Rep. Salceda proposes hike on Road Users' Tax

RG Cruz, ABS-CBN News

Posted at Sep 11 2019 02:53 PM

MANILA – The head of the House of Representatives' tax-writing committee said Wednesday he was proposing an increase in the road users' tax, which had not been adjusted for 15 years.

The Motor Vehicle Users' Charge has stayed the same even as inflation accelerated by 91 percent, said Albay Rep. Joey Salceda, head of the House Ways and Means Committee.

Under Salceda's proposal, the increase will be staggered over 3 years, after which, there will be a minimum fee based on weight. The lowest tiered vehicle could see its MVUC rise to P2,300 from P1,600. Motorcycles and tricycles will be exempted from fees.

Salceda said his proposal was different from that of the Department of Finance which could see some vehicle owners paying as much as P33,000.

Salceda said his panel would study the matter further.