Palace eyes road tax for safety programs

Police and rescuers retrieve bodies of passengers after a bus veered off a mountain road in Bontoc town, Mountain Province, Friday, Feb. 7, 2014. The rash of vehicular accidents has prompted the government to take a hard look at how the P12-billion road user’s tax, which is supposed to fund road safety, is being used. AP

MANILA, Philippines—The rash of vehicular accidents has prompted the government to take a hard look at how the P12-billion road user’s tax, which is supposed to fund road safety, is being utilized.

The total amount collected from car owners each year under the tax, known as the motor vehicle user’s charge (MVUC), comes to around P10 billion, according to Malacañang.

President Aquino is taking a hands-on approach amid the increasing frequency of accidents involving public buses.

“The President is meeting shortly with the Department of Transportation and Communications, Land Transportation Franchising and Regulatory Board (LTFRB) and Land Transportation Office (LTO) to discuss an action plan for preventing accidents and enhancing safety in public transportation,” said Communications Secretary Herminio Coloma on Tuesday.

The LTFRB canceled the franchise of Don Mariano Transport Corp. (DMTC) on Jan. 14 after the company’s buses were involved in a string of accidents, including the Skyway crash that killed at least 20 on Dec. 16.

The LTFRB is investigating another more recent accident involving a bus operated by GV Florida which fell into a ravine in Bontoc, Mountain Province, on Friday killing 15 passengers.

Asked about the road user’s tax, Coloma forwarded a text message from Public Works Secretary Rogelio Singson denying the rumors of possible abuse in the utilization of the fund.

“It’s being used properly,” said Singson, adding that the “focus” was now on “road maintenance and safety.”

The Road Board, which administers the road user’s tax, is under the Department of Public Works and Highways (DPWH).

Senate Pro Tempore Ralph Recto said on Tuesday the amount in road user’s tax collected last year from motor vehicle registration fees reached P11.7 billion.

He urged the government to tap a portion of the P11.7 billion for road safety, saying road accidents were becoming a “national epidemic.”