Amended road users’ tax law endorsed for House okay

January 27, 2020

THE House Committee on Ways and Means  yesterday endorsed for plenary approval the amended provision of a proposed law that would increase the Motor Vehicle Road Users’ Tax (MVRUT) aimed at raising P69 billion in the first three years of its implementation.

Marikina City Rep. Stella Quimbo’s motion was seconded by Deputy Speaker and Surigao del Sur Rep.  Prospero Pichay Jr., prompting the House ways and means panel chaired by Albay Rep. Joey Sarte Salceda to adopt and approve the proposal that was passed by the Committee on Appropriations last week.

“For the information of the body, the Committee on Appropriations approved Section 5 with amendments, so we move for the approval of this section as incorporated in the draft substitute bill. May I move approval for the approval of the substitute bill and its corresponding committee report,” said Quimbo in pushing for the approval of the motion during the hearing presided by Nueva Ecija Rep. Estrellita Suansing, a vice chairperson of the House committee on appropriations.

Last January 22, the appropriations committee chaired by Davao City Rep. Isidro Ungab approved the earmarking provision of the MVURT with “minor amendments.”

“This measure does three things. It tries to update the motor vehicle road user’s charge since it was last imposed in 2004, it was not adjusted. Second, it is a revenue measure because in the next five years, it can raise P220 billion. In fact, on its second year [of implementation], for this year, it could raise about P12 billion, the next year P25 billion, and the following year P32 billion,” said Salceda in his sponsorship speech before the Ungab panel.