MANILA, PHILIPPINES: Another round of increase in the motor vehicle users charge (MVUC) has been proposed by Quezon Rep. Danilo E. Suarez at the House of Representatives.

The proposal seeks a gradual increase in the MVUC over four years. In House Bill No. 1559, the MVUC base rates in the different categories of motor vehicles will be increased by 25%, then 50%, then 75% and finally 100% in the first, second, third and fourth year, respectively, after the bill is passed into law.

Revenues from the increase in the MVUC will be dedicated to maintaining and improving the condition of roads, building new roads, and ensuring road safety.

"The National Government lacks the finances to realize these undertakings because of its burgeoning budgetary deficit," Mr. Suarez said in his bill's explanatory note.

The last increase in the MVUC was imposed about four years ago through Republic Act 8794. That increase adjusted the private motor vehicle tax under Executive Order No. 43 series of 1986, which is more than a decade old.

Mr. Suarez added in his explanatory note that the increase then should have been 300% instead of 100% in four years, "to reflect the impact of inflation since 1978 and the deterioration of roads through the years."

The base rates for private and government vehicles specified in House Bill No. 1559 are the following:

• passenger cars with gross weights between 1,600 kilograms (kg.) and 2,300 kg. -- from PhP1,600 to PhP8,000
• utility vehicles with gross weight up to 2,700 kg. -- PhP2,000
• utility vehicles with gross weight between 2,700 kg. and 4,500 kg. -- PhP2,000 and additional PhP20 per 100 kg. over 2,700 kg.
• motorcycles without sidecar -- PhP240
• motorcycles with sidecar -- PhP300
• buses with gross weight of more than 4,500 kg. -- PhP1,800 and additional PhP12 per 100 kg. over 2,700 kg.
• trucks with gross weight of more than 4,500 kg. -- PhP1,800 and additional PhP12 per 100 kg. over 2,700 kg.
• trailers with gross weight of more than 4,500 kg. -- PhP24 per 100 kg.

The base rates for vehicles for hire are the following:

• passenger cars with gross weights between 1,600 kg. and 2,300 kg. -- from PhP900 to PhP5,000
• utility vehicles with gross weight of up to 4,500 kg. -- PhP30 per 100 kg.
• motorcycles without sidecar -- PhP300
• motorcycles with sidecar -- PhP480
• buses with gross weight of more than 4,500 kg. -- PhP30 per 100 kg.
• trucks with gross weight of more than 4,500 kg. -- PhP1,800 plus PhP12 per 100 kg. of gross weight over 2,700 kg.
• trailers with gross weight of more than 4,500 kg. -- PhP24 per 100 kg.

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