Senate OKs bicam report on motor vehicle users' charge

The Senate ratified yesterday the bicameral conference committee report seeking to impose a motor vehicle users' charge (MVUC).

The vote on the controversial tax measure was 10-0, with five abstentions.

The MVUC was meant to take the place of the present vehicle registration fee which is based on engine displacement.

It will be imposed on every motor vehicle, whether for hire or for private use, including government vehicles, based on the vehicle's gross weight.

Sen. Juan Ponce Enrile, chairman of the Senate committee on ways and means, said the bicameral panel acknowledged the opposition of some groups to the MVUC and came out with a schedule of payments meant to ease the burden of paying it on vehicle owners.

Instead of paying the entire amount immediately, vehicle owners will be paying the sum only after four years, with a 25 percent incremental increase every year.

"However, private passenger cars to be registered for the first time after the effectivity of this Act shall automatically be subject to the new MVUC rates," Enrile said.

The report also provides that support utility vehicles shall be charged 15 percent higher than private cars.

"Motorcycles for hire with sidecars shall not pay more than P300," Enrile added.

Funds from the MVUC will be earmarked for road maintenance, improvement of road drainage, installation of adequate and efficient traffic lights, and air pollution control.

The measure prohibits any political subdivision or unit in the country from imposing any similar tax, fee or charge.