THE HOUSE of Representatives has approved on second reading a bill that will increase the road user’s tax and expand funding for the government modernization program for public utility vehicles.
“The cross-party consensus of the House, including the progressive groups and the minority, to move the bill forward validates the exhaustive efforts we have done to ensure that this is the most progressive transport tax in recent history,” ways and means Chairman and Albay Rep. Jose Maria Clemente S. Salceda said in a statement on Thursday.
Under the measure, there will be a 30% annual rate increase for passenger cars, both public and private, for three years.
The rates for all other vehicles namely utility vehicles, sport utility vehicles, buses, trucks and trailers will be based on a per kilogram of gross vehicle weight: 1.40/kilo of GVW in the first year, 2.50/kilo in the second year, 3.40/kilo in the third year.
The measure also seeks to cut the road user’s tax on vehicles for hire to 50% of the tax for private and government vehicles.
An 5% annual increase will be imposed by Jan. 1, 2023 through revenue regulations issued by the Finance secretary to ensure inflation “does not erode the value of revenues,” Mr. Salceda said.
He said the rich would primarily pay for the tax. — Genshen L. Espedido