Recto urges Duterte admin to shelve plan to raise vehicle registration fees

Senate President Pro Tempore Ralph Recto on Thursday discouraged the Duterte administration from pursuing its plan to raise motor vehicle registration fees after the controversial Road Board has been abolished.

“’The end’ na ang Road Board. But raising car registration fees should not be its sequel. Hindi ito dapat ang next picture,” Recto said in a statement.

He revealed that Executive Department officials earlier conveyed to the Senate and House of Representatives proposals to increase the rates of what is officially called the Motor Vehicle User’s Charge (MVUC).

One proposal “indexes MVUC to inflation—meaning it will be raised based on the inflation rates through the years,” the senator noted.

“Medyo mabigat kasi kung adjusted to inflation, using 2004 as base year. ‘Yung bayad sa rehistro ng bantam car at SUV ay parehong tataas by 72 percent,” Recto said.

“Mayroon naman isang pahiwatig na 50 percent ang increase. Mayroong 100 percent ang increase,” he added.

It has not moved through the legislative mill as the Executive branch did not push for the proposal, the senator clarified, noting that he still finds it necessary to bring the proposals out in the open.

“Mabuti na ‘yung masabi natin, kasi baka ang maging talking points ay binuwag na ang Road Board kaya pwede nang itaas ang singil sa rehistro ng mga sasakyang panglupa,” he said.

Two years ago, Recto warned of a “three strike package” being prepared by the new administration against motor vehicle owners.

These were additional excise taxes on fuel, higher taxes on motor vehicles, and adjusting the MVUC. The first two were implemented under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“Baka pwede, huwag nang ituloy ‘yung strike 3, ‘yung sa MVUC. Kasi sapat na ang buwis sa gasolina bilang tax sa paggamit ng kalsada. There is already a toll fee in the gas tax. Kung limang kilometro kada litro ang itinatakbo ng sasakyan mo, sa 50 kilometrong ginapang mo, ang gas tax mo ay P144,” Recto said.

The government must be content that P46.25 billion in MVUC collections can now be booked, rightfully, as tax, and they must be reflected as such in revenue reports, the senator noted.

“Kung parte na rin ng General Fund ang MVUC, lalaki ang source of funds ng national budget, at ang pondo ng DPWH. Kasi ngayon off-budget at earmarked revenues siya, at hindi fully transparent ang paggastos nito,” he said.

“In fact, by putting this in the General Fund, there should be less pressure in increasing taxes,” he emphasized

This 2019, the government expects to collect, through the Land Transportation Office, P13.93 billion in MVUC, Recto added. —VDS, GMA News