By Ben Rosario

Already smarting from the daily traffic mess and increasing the cost of fuel, motorists may have to face a new burden – a 300 percent hike in the graft-ridden motor vehicle user’s charge (MVUC).

On Friday, Albay Rep. Joey Sarte Salceda, principal author of all tax-reform measures of the Duterte administration, filed House Bill 4695 that will impose additional charges for motor vehicles each time registration is renewed.

Salceda, chairman of the House Committee on Ways and Means, said the bill is meant to “improve the progressivity” of the motor vehicle’s users’ charge, adding that the increase will also fund “critical health” programs which is the same reason he cited for proposing new rounds of increases in tobacco and liquor taxes.

However, the House official was quick to point out that millions of motorycle owners “who use less road space than other vehicles” will be exempted from the MVUC.

“The bill actually improves the progressivity of the current MVUC law. First, it provides relief for motorcycle owners, who, because of traffic, have been forced to use motorcycles,” explained Salceda, who is also senior vice chairman of the House Committee on Appropriations.

He said motorcycle owners “are not rich and cannot afford cars,” thus should be exempted from MVUC imposition.

Not covered by the exemption are motorcycles with engine displacement of 400cc and above or so-called “big bikes” although they are already considered luxury motor vehicles costing over P1 million.

MVUC expenditures were usually held under question by Commission on Audit examiners for being tainted with graft, more particularly during the time that the now abolish Road Board handled the multi-billion peso vehicle taxes.

Salceda said the proposed measure will generate for the government additional P8.12 billion in 2020; P9.62 billion in 2021; P10.57 billion in 2022; P28.44 billion in 2023, and P32.61 billion in 2024.

According to him, the bill is more tamed compared to the proposal of the Department of Finance which seeks a drastic shift to unitary rate.”

“While I believe that this is a progressive and equitable bill, I am very open to further improvements to this proposal. My committee will consult all the relevant stakeholders,” Salceda stated.

Under the bill, owners of passenger vehicles with gross weight of up to 1,600 kilograms will absorb an MVUC adjustment of P2,912 in 2020; P3,028 in 2021, and P3,056 in 2022.

For those exceeding 1,600 kg but below 2,300: P6,552 in 2020; P6,814 in 2021, and P6,876 in January, 2022.

For utility vehicles of up to 2,700 kg: P3,650 in 2020; P3,786 in 2021, and P3,820 in 2022.