Metro Manila (CNN Philippines, July 25) — A House of Representatives panel on Tuesday approved a proposal to raise the Motor Vehicle Road Users’ Charge (MVUC), a day after President Ferdinand Marcos Jr. mentioned it as a priority in his second State of the Nation Address (SONA).
The bill endorsed by the House Ways and Means Committee seeks to amend the two-decade-old RA 8794, which mandated the collection of MVUC.
The MVUC currently ranges from ₱120 to ₱4,000 under the current law, depending on the motor vehicle’s gross weight.
Under the bill approved by the committee, the MVUC, now to be called Motor Vehicle Road User’s Tax (MVRUT), will range from ₱2,080 to ₱10,400 for cars, depending on their gross weight.The MVUC is set at ₱1.40 or more per kilogram of gross vehicle weight for sports utility vehicles, utility vehicles, trucks and trailers weighing more than 4,500 kilograms.Vehicles for hire will get a 50% discount on MVUC while motorcycles and tricycles are exempted from the tax.Should the tax measure hurdle Congress, the MVUC will be increased by a fixed rate yearly until 2025, and by 5% from 2026 onwards.Albay Rep. Joey Salceda, the committee chairman, said the government will collect nearly ₱151 billion from 2024 to 2027 by increasing the MVUC.
