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Motorcycle exemption from MVUC eyed in tax reform

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ABS-CBN News

<p>MANILA - The head of the House of Representatives’ tax-writing panel has proposed to exempt motorcycles from the road user&#x27;s tax as lawmakers prepare to hear new revenue proposals and reforms. </p><p>Albay Congressman Joey Salceda who chairs House Ways and Means Chair said “only 5.9 percent of all Filipino households own any type of car, jeep, or van.” </p><p>“Meanwhile, half of Filipino households own some sort of motorcycle,” Salceda said in a statement.</p><p>He said this is why motorcycles should be exempt from the road tax, also known as the MVUC or motor vehicle user&#x27;s charge. </p><p>“Especially since it’s a means of living now, with delivery express services and the like. Tricycles will also be exempt under my proposal,” he added. </p><p>Salceda noted that car ownership in the Philippines is “heavily subsidized” and has contributed to traffic congestion in Metro Manila, which is costing the country billions each day.</p><p>“JICA [Japan International Cooperation Agency] estimates the cost of traffic in the Greater Manila Area to be P1.227 trillion [yearly] alone, based on a 2017 study. That has likely grown,” Salceda said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/02/22/18/p35-billion-lost-daily-due-to-traffic-jams-jica">P3.5 billion lost daily due to traffic jams: JICA</a></li></ul><p>“Meanwhile, the National Government spends around P300 billion on road construction and repair every year. Meanwhile, the MVUC is just around P18 billion a year. So, car owners are heavily subsidized for car use,” Salceda said.</p><p>Meanwhile, the House body is also looking to allot a budget for zero-interest loans for local jeepney manufacturers. </p><p>“The imported modern ones are too expensive. We need locally made cheaper ones, so that the jobs created are created here,” he added. </p><p>Salceda said the House tax panel will hear proposals to update MVUC rates before it hears proposed taxes on salty and sugary food, when session resumes after President Marcos’s second State of the Nation Address.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/03/19/19/duterte-signs-law-abolishing-road-board">Duterte signs law abolishing Road Board</a></li>	<li><a href="https://news.abs-cbn.com/pinoycarculator">The Pinoy Tax Reform CARculator</a></li></ul><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2697150" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Albay Congressman Joey Salceda who chairs House Ways and Means Chair said only 5.9 percent of all Filipino households own cars while around half own motorcycles. 