Metro Manila (CNN Philippines, June 30) — House ways and means committee chairman Joey Salceda said he wants to prioritize increasing taxes for those who own vehicles than increasing the excise tax on junk food and sweetened drinks.
“I don’t think, personally, taxing food is the last thing to do. So I’d rather tax the cars,” Salceda told CNN Philippines’ The Source on Friday.
On Thursday, Salceda said lawmakers will discuss the proposal to increase the motor vehicle user’s charge before the same is done for excise taxes on junk food and sweetened drinks.
Republic Act 8794 mandated the collection of motor vehicle user’s charge to serve as additional revenue for the national government for the maintenance of national and provincial roads. The fee ranges from ₱120 to ₱4,000 depending on the motor vehicle’s gross weight.
According to Salceda, the motor vehicle user’s charge is already outdated since it has not been adjusted since 2004.
The government earns only ₱179 billion from this annually, which is less than the dysfunctional impact to the Philippine economy worth ₱1.5 trillion, and economic cost valued at ₱1.3 trillion, the lawmaker noted.
Salceda admitted that the government has to look for other sources of revenue since the tax to gross domestic product ratio has gone down to around 12% from around 14%. This is better done by taxing the rich, specifically the top 10% of the population who own 60% of all cars in the country.
“We are penalizing you not for owning it, we are penalizing you for using the roads and for causing traffic,” he said.
Budget Secretary Amenah Pangandaman earlier said that revenue from the planned early implementation of additional taxes on sweetened beverages and salty junk food increased the proposed 2024 budget to ₱5.768 trillion.
