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Angara: Improve public transpo first before raising taxes on oil, cars


The chairman of the Senate ways and means committee on Friday urged the government to fast track projects that would improve the public transport system amid proposals to increase excise taxes on oil and automobiles.

Senator Juan Edgardo "Sonny" Angara said this following his committee’s hearings on the tax reform package being proposed by the Duterte administration.

The tax reform measure recently passed by the House of Representatives aims to lower income taxes while limiting value added tax (VAT) exemptions and adjusting excise taxes on oil and automobiles.

“The government wants to reduce the number of vehicles on the road to address traffic congestion kaya tataasan nila ang buwis ng sasakyan. Kasabay nito, tataasan din nila ang buwis ng petrolyo na maaaring magresulta sa dagdag pasahe,” Angara said.

“I think raising the auto excise is a good strategy but the government should provide the public an efficient, dependable, safe and affordable public transport system to encourage the people to take mass transit rather than use their own cars,” he said.

Transport groups earlier warned that despite the government’s eyed subsidy programs, the proposed oil tax hike could result in an increase in jeepney fares from the current P8 to P10.

The proposed adjustment of excise tax on automobiles, mass-market vehicles such as the base model Toyota Vios would increase by P10,000, Mitsubishi Mirage by P13,000, Toyota Innova by P43,000, while SUVs such as Toyota Land Cruiser will increase by as much as P950,000.

“I am one with the goal of making public transport the preferred mode of travel. Pero sana madaliin din ang pag-ayos ng MRT at LRT to help migrate the ones bringing cars to public transport,” Angara said.

Last week, Socioeconomic Planning Secretary Ernesto Pernia said Congress should pass “in toto” the comprehensive tax reform package bill, as he warned that a watered-down version would diminish the ambitious “build, build, build” program of the government. — MDM, GMA News

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