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Hse committee updated MVUC rates

By Nidz Godino

"Bill is based on MVRUT bill passed on third and final reading in  18th Congress, after thorough deliberation and consultation with stakeholders and industry experts by our committee," House committee on ways and means  approved  bill updating  rates of motor vehicle user's charges (MVUC).

With no objection from  stakeholders who participated in  hearing, panel chief and Albay Rep. Joey Salceda declared House Bill (HB) 376 approved by  committee.

Bill  aims to raise more funds for public transport modernization, while reducing rates for vehicles for-hire and exempting motorcycles and tricycles from  charge.

Speaker Ferdinand Martin Romualdez said  MVUC measure is one of six bills  chamber hopes to pass by December.

In his second State of the Nation Address, President Ferdinand Marcos Jr. identified MVUC measure as priority legislation.

According to Salceda, HB 376 seeks to amend Republic Act No. 8794 or MVUC enacted more than two decades ago, and impose  Motor Vehicle Road User's Tax or MVRUT instead.

Measure  is also part of  priorities of  Development Budget Coordination Committee, which estimated revenues of P151 billion from 2024 to 2027 from  measure.

Finance Undersecretary Cielo Magno told  committee at  hearing DOF "fully supports"  measure.

"We believe simplified version of  MUVC bill would be very supportive of  needs of  Filipino people for seamless mobility that would provide safe reliable road systems," she said.

Bureau of Internal Revenue lawyer Anne Lorainen Garcia-Marquez also expressed  BIR's support for measure  she stressed would "help  government generate revenues to defray  necessary expenses such as road development for  betterment of  country."

But PISTON chair Modesto Floranda has expressed concern  additional taxes would further burden  public transport sector.

"So if imposing additional taxes could not be avoided, we hope this will be imposed on big businessmen and rich individuals, not us," he maintained.

Salceda explained t public utility vehicles (PUVs) would actually enjoy 50 percent discount under  measure.

Aside from this, part of  MVUC collections would be earmarked for PUV operators to help them modernize their units.

According to lawmaker, FMJ has  authority to adjust  MVUC rates annually as stipulated in RA 8794.

But since  enactment of  law in 2014, MVUC rates had been adjusted only once , not even for inflation in  past 19 years before  enactment of  law in 2014.

"So, actually, it takes courage for Congress to undertake this, but it's Congress, as representatives of  people, who would be in  better position to decide these things," Salceda stressed.

Measure  aims to raise some P274.45 billion over  next five years. It also seeks to earmark 45 percent of incremental revenues for  PUV modernization program, and five percent for road crash prevention programs.

"As envisioned,  earmarking for PUV modernization will be enough for equity subsidy of P500,000 per unit of PUV," he maintained.

DOF estimates  implementation of  MVUC reform will have minimal impact on public transport fares in 2024.

Proposal  would also result in minimal impact on inflation at 0.068 percentage points next year.

Meanwhile, Romualdez said seven of  17 measures cited as priority by FMJ in his SONA had already hurdled  chamber.

"I am extremely confident  House would again rise up to  occasion and accept  challenge from our President: to pass  17 priority measures needed to sustain our economic recovery and improve  living condition of our people," he said.

Ten pieces of legislation are being readied for approval by October, among them  four taken up in  SONA labeled as "priority" , Anti-Agricultural Smuggling, Amendments to the Cooperative Code, Tatak Pinoy and Blue Economy.

Expected for approval by December aside from  MVUC are Military and Uniformed Personnel Pension, Revised Procurement Law, New Government Auditing Code, Rationalization of Mining Fiscal Regime and National Water Act.

 List  of 17 SONA priority measures, according to Speaker, does not include  proposed 2024 national budget of P5.7 trillion, which  Executive Department will submit to Congress sometime next month.

"Of course, most important bill that we need to discuss and approve  soonest time possible is 2024 General Appropriations Bill based on  National Expenditure Program prepared by  Executive Department," Romualdez pointed out.


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