Recto: Gov’t seeking hike in car registration fees | Inquirer News

Recto: Gov’t seeking hike in car registration fees

By: - Reporter / @MAgerINQ
/ 09:22 AM January 24, 2019

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Senate President Pro Tempore Ralph Recto said the government was seeking to increase car registration fees but added that it had not been listed as urgent. NIÑO JESUS ORBETA

MANILA, Philippines — After higher excise tax on fuel, comes higher fees for car registration?

On Thursday, Senate President Pro Tempore Ralph Recto raised the alarm over a possible increase in the Motor Vehicle User’s Charge (MVUC).


Recto disclosed that proposals to raise the MVUC rates have been conveyed to Congress by government officials.


One proposal, he said, “indexes MVUC to inflation, meaning it will be raised based on the inflation rates through the years.”

“Medyo mabigat kasi kung adjusted to inflation, using 2004 as base year, ‘yung bayad sa rehistro ng bantam car at SUV ay parehong tataas by 72 percent,” the senator said in a statement.

“Mayroon naman isang pahiwatig na 50 percent ang increase. Mayroong 100 percent ang increase,” he added.

But Recto said these have not moved in Congress for lack of a “determined push by the executive and a presidential certification” that it was an urgent measure.

“Mabuti na ‘yung masabi natin, kasi baka ang maging talking points ay binuwag na ang Road Board kaya pwede nang itaas ang singil sa rehistro ng mga sasakyang panglupa,” he said.

As early as two years ago, Recto said he already warned of a “three strike package” being prepared by the new government against motor vehicle owners.


The three, he said are the additional excise tax on fuel, higher taxes on motor vehicles and adjusting the MVUC.

The first two have already been implemented through the Tax Reform for Acceleration and Inclusion (Train) law, the senator said.

“Baka pwede, huwag nang ituloy ‘yung strike 3, ‘yung sa MVUC. Kasi sapat na ang buwis sa gasolina bilang tax sa paggamit ng kalsada. There is already a toll fee in the gas tax. Kung limang kilometro kada litro ang itinatakbo ng sasakyan mo, sa 50 kilometrong ginapang mo, ang gas tax mo ay P144,” Recto said.

He said government should now be content that P46.25 billion in MVUC collections can now be booked, rightfully, as tax, and they must be reflected as such in revenue reports.

Congress just ratified this week a bill abolishing the Road Board, which currently oversees the funds collected from the road user’s tax.

Once the board is abolished, the funds will be included in the annual General Appropriation Act to be used solely for the construction, upgrading, repair, and rehabilitation of roads, bridges and road drainage.

READ: Senate OKs new Road Board abolition bill

For 2019, Recto said the government projected to collect P13.93 billion from MVUC.

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“The end na ang Road Board. But raising car registration fees should not be its sequel. Hindi ito dapat ang next picture,” Recto said. /cbb

TAGS: car registration, MVUC, News, Ralph Recto, Road Board, Senate

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