‘Rationalize road user tax’

The American Chamber of Commerce of the Philippines Inc. (AmCham), a private, independent and non-profit organization that aims to foster Philippine-American relations, is imploring the government to exert political will in implementing a law that seeks to rationalize road user taxation and ensure adequate funding for the maintenance of all roads in the country.

AmCham said the government’s lack of resolve in implementing Republic Act 8794 entitled "An Act Imposing a Motor Vehicle Users’ Charge on Owners of All Types of Motor Vehicles and for other Purposes" could delay the badly needed road maintenance and restoration programs as well as deprived the project of its funds.

At present there is a backlog of road maintenance measures that could be eliminated with some P3.4 billion annually for the next 10 years.

Since RA 8794 was signed into law on June 27,2000, the collected motor vehicle users’ charges of P2.1 billion could not be put into use because the Road Fund Secretariat, which will render accounting, auditing, and administrative functions of the Road Board, has not been formed.

Aside from that, the Road Program Office (RPO), which will assist the Road Board in planning for road maintenance and road safety projects, has yet to be organized under the Department of Public Works and Highways (DPWH).

AmCham also pointed out the refusal of the Department of Budget and Management (DBM) to assign an agency code for the Road Board endangers the funds collected because it is still classified as national funds that could be used in other pruposes.

These bottlenecks have apparently been the result of President Gloria Macapagal-Arroyo’s Administrative Order No. 5, which prohibited the operation of new agencies or offices, expansion of organizational units and creation of positions, and establishment of task forces, inter-agency committees and interim bodies.