Congress to proceed with enactment of road tax bill

It looks all clear for the road user's tax as far as lawmakers are concerned.

The House of Representatives and the Senate will proceed with the enactment of the road user's tax bill despite the opposition expressed by President Estrada to the measure.

Rep. Danilo Suarez (LAMP, Quezon), chairman of the House ways and means committee, told reporters yesterday that the two chambers will begin ironing out the differences between their respective versions of the bill on Thursday.

He said he and his colleagues in Congress have decided to approve the bill and that it would be up to the President to veto it or sign it into law.

Mr. Estrada, after meeting with leaders of transport groups last week, asked Congress to shelve the measure, saying he won't sign it in case it is passed.

The President called for the meeting in an effort to avert a nationwide transport strike planned by drivers and operators of public utility vehicles.

The road user's tax will come in the form of an increase in annual registration fees for the more than three million motor vehicles in the country.

In the case of luxury sport utility vehicles (SUVs), the increase will be 15 times the present registration rate, from about P1,000 to P15,000. SUVs, such as Land Cruisers, Ford Expeditions and Pajeros, are at present classified as ordinary utility vehicles.

Suarez said he has informed Executive Secretary Ronaldo Zamora of the intention of congressmen and senators to pass the road user's tax bill.

He said as contained in the measure, part of the collections from increased motor vehicle registration fees will be used to implement the Clean Air Act.

The bulk of it will go to road maintenance and improvement of traffic lights, he said.

He added that a monitoring group that would include representatives from transport groups and other concerned organizations would be created.

He stressed that if Congress does not enact the road user's tax bill, this year's P62.5-billion deficit target would balloon by at least P4 billion.

Suarez revealed that to soften drivers' and operators' opposition to the bill, the bicameral conference committee would most likely adopt the recommendation of his Senate counterpart, Sen. Juan Ponce Enrile, to spread the vehicle registration fee increase over four years.

Under the House version of the measure, the increase would be staggered over two years.

The House ways and means committee chairman also clarified that the proposed registration fee adjustment for passenger jeepneys is only P500 and not P2,500 as some transport groups claim.

He said the proposed adjustments have been discussed in various public hearings with concerned transport groups.

Besides the projected increase, the organizations are opposing the increase in fines and other administrative fees authorized under Executive Order 197 issued by the President last Jan. 13.

Under such order, the fees would go up by not less than 20 percent.

Transport agencies are planning an adjustment of 50 percent.