Transparency sought on use of road user’s tax

MANILA, Philippines - Sen. Ferdinand Marcos Jr. wants to know how the government used the P90.7-billion road user’s tax, or the Motor Vehicle User’s Charge (MVUC), following reports that about 90 percent of the fund had been used up by end of 2012.

Marcos, chairman of the Senate committee on public works, sought for transparency and accountability on the MVUC collections, as he ordered the Road Board, the Department of Transportation and Communications (DOTC) and the Department of Public Works and Highways (DPWH) to furnish the committee a detailed breakdown of the MVUC expenditures.

The road user’s tax is the government’s third biggest source of tax revenues, according to the senator.

 Marcos made the call after learning that only P10.2 billion in road user’s tax remained as of the end of 2012, despite having an average annual collection of about P7 billion.

He said the collection from the road user’s tax was estimated at P90.7 billion from 2001 to December last year.

Marcos said he ordered the DOTC and DPWH officials to submit the breakdown of the MVUC expenditure in order to determine if the fund was spent properly.

The committee has conducted hearings on several bills seeking to tap the MVUC collection to create separate funds for different purposes, such as for the maintenance and rehabilitation of the mass transit system, implementation of the “green highway” project or the tree planting along national highways, and other reforestation initiatives.

Road Board director Adolfo Escalona reported to the committee that P4.6 billion of the MVUC collection has been spent for Fund 151 or the special road support fund and the P127 million for Fund 153 (special road safety fund.)

 Escalona said the board is processing P43 million for various programs proposed by the Department of the Interior and Local Government (DILG) to be funded from Fund 153, although they have yet to release anything from the DOTC Fund 151 (special vehicle pollution control fund).

The Road Board said the remaining balances of the MVUC collections amounted to P229 million for Fund 151, P328 million for Fund 152 (special local road fund), P280 million for Fund 153 and P4.9 billion for DOTC Fund 151.

Escalona said the DOTC Fund 151 ballooned because the board disallowed some of its proposed projects, as it did not fall within the approved work categories.

“I see some room for adjustment on the use of the MVUC funds, as some of the projects were either not completed, not approved, or not accredited for whatever reasons. We will see how we can improve this system to ensure MVUC funds are used properly and for the right purposes,” Marcos said.