House okays amendment to vehicle user's charge law

MANILA, Philippines - The House of Representatives has approved on third and final reading a measure amending provisions of Republic Act 8794, also known as the Motor Vehicle User’s Charge (MVUC) Law, to give Congress power to allocate the proceeds.

House Bill 4069 amends Sections 7 and 8 of the law to remit all proceeds collected in the course of implementing the law to the National Treasury and become part of the annual budget of the Department of Public Works and Highways (DPWH) and Department of Transportation and Communications (DOTC).

It also provides that the province hosting a branch of the Land Transportation Office (LTO) shall be entitled to 50 percent of the monies collected by the LTO branch. 

Quezon Rep. Danilo Suarez, one of the principal authors of the bill, said the recent controversies surrounding the use and distribution of the MVUC make it important to restructure the distribution of the proceeds.

“The MVUC provides a readily available funding mechanism on the emergency repairs and maintenance of the country’s major highways,” Suarez said.

He expressed hope that through the proposed measure, the MVUC will be used to improve roads in the country.

Zamboanga del Sur Rep. Aurora Enerio-Cerilles, co-author of the bill, said 10 years after the law was enacted, the inequity of distribution of funds by the Road Board is still being questioned.

“The bill seeks to amend some portions of RA 8794 to give justice to the original intention of the framers of this law, which is to provide funds for the maintenance of provincial roads. This will direct all monies collected to the general fund of the national government and it will be the Congress of the Philippines who will later judiciously allocate the money, making it transparent and accountable,” she said.

Albay Rep. Al Francis Bichara, co-author of the bill, said giving Congress power to review the allocation of the road user’s tax will make sure the funds are spent for its intent.

“We have an obligation to guarantee that the public funds are spent according to the will and the needs of the Filipino people,” he said.