Metro Manila (CNN Philippines, March 10) — The House of Representatives passed Tuesday a bill seeking to impose higher taxes on road users.
House Bill No. 6136, which seeks to hike the motor vehicle road user’s tax by as much as 30 percent, passed the chamber on third reading with 240 voting in favor and five against.
The measure seeks to increase the tax, currently known as the motor vehicle user’s charge, on passenger cars weighing up to 1,600 kilograms from P1,600 to P2,080 on the first year of its implementation. Tax on cars weighing between 1,600 kilograms to 2,300 kilograms will increase from P3,600 to P4,680, while tax on cars weighing more than 2,300 kilograms will increase from P8,000 to P10,400.
The bill also wants to impose a uniform tax of P1.40 kilogram per gross vehicle weight for utility vehicles, sports utility vehicles, buses, trucks and trailers on the first year of its implementation.
The existing tax for motorcycles, meanwhile, is eliminated under the measure.
Forty-five percent of the revenues from the tax hike will be used to fund the modernization of public utility vehicles, while five percent will be used to prevent deaths due to road accidents and for the assistance of accident victims.
