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IN THE KNOW: Road Board

07:20 AM December 18, 2018

The Road Board was established through Republic Act No. 8794 to ensure the efficient management of the motor vehicle user’s charge (MVUC), also known as “road user’s tax.”

The tax is collected yearly for the maintenance and improvement of roads, drainage and road safety devices.

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Created in June 2000, the Road Board is composed of the secretaries of public works and highways (currently Mark Villar), of transportation (Arthur Tugade), of budget and management (Benjamin Diokno) and of finance (Carlos Dominguez III) as ex officio members, and three representatives of private transport organizations (Richard Necesario and two others.)

The public works secretary serves as the ex officio board chair. Members are appointed to a two-year term by the President.

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Executive director

The Road Board Secretariat is currently headed by Executive Director Luisito V. Clavano. Other staff members include June E. Balisi (comptroller), Tito Lyndon R. Llemos (executive assistant), Reymark B. Andallo (chief accountant) and Roderick V. Hornedo (planning and monitoring chief).

Road maintenance, safety

MVUC collections are deposited in four special trust accounts: Special Road Support Fund, Special Local Road Fund and Special Road Safety Fund under the Department of Public Works and Highways (DPWH) and the Special Vehicle Pollution Control Fund under the Department of Transportation.

The MVUC can be used only for the maintenance of national, city and provincial roads; and for programs that ensure road safety and air pollution control.

The tax is collected from all types of motor vehicles, including “trisikad” and “pedicabs,” upon registration with the Land Transportation Office.

Tax rates

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The proceeds also take account of the penalties from “overloading” imposed on trucks and trailers.

Base rates for private and government cars range from P800 to P4,000 depending on the vehicles’ gross weight.

For private utility vehicles, base rates start at P1,000 and increase every 100 kilograms over 2,700 kg.

For private motorcycles without sidecar, the rate is P120 and for those with sidecars, P150. For buses, the base rate starts at P900 and increases every 100 kg over 2,700 kg.

Base rates are different for public or for-hire cars, which range from P450 to P2,500 depending on the vehicles’ gross weight.

For public utility vehicles, the rate is P15 per 100 kg of gross weight. Motorcycles for hire with sidecars are charged P240 for the base rate while those without sidecars are charged P150.

For public buses, the base rate is P15 per 100 kg of gross vehicle weight. —Inquirer Research

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TAGS: In the Know, Motor Vehicle User's Charge, MVUC, Road Board, road users tax
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