Senate okays road user's tax

The Senate approved the other night on third and final reading a bill seeking to impose a road user's tax "to ensure the adequate maintenance of national and provincial roads through sufficient funding."

The vote for the measure that emanated from the House was 14-5 with no abstention. The negative votes were cast by opposition Senators Teofisto Guingona, Renato Cayetano, Robert Barbers, Juan Flavier and Loren Legarda.

Sen. Juan Ponce Enrile, sponsor of the measure, said that the road users' tax will be imposed in lieu of the registration fee on every motor vehicle, whether for hire or for private use, including government motor vehicles.

The approval of the measure came despite a concerted move waged by Guingona against it, which he claimed would unduly burden the citizens. He said that earnest collection, not new taxes, is needed to enhance government revenues.

Cayetano described the tax measure as "untimely" since it comes while the citizens are groaning from the impact of an economic crisis.

"It would be burdensome to the poor and the middle class since the charges would be based not on the ability to pay but on gross vehicle weight," he added.

Under the present scheme, vehicle registration fees are based on the engine displacement, with only two classifications -- light and heavy -- for passenger cars.

Once the measure becomes a law, owners of passenger cars with gross vehicle weight (GVW) of less than 1,200 kilograms will pay a road users' tax of P1,300 every year. Vehicles with GVW of 1,201 to 2,000 kilograms will be charged P3,800 and those with more than 2,000 kilograms, P7,500.

Utility vehicles with a GVW of less than 2,500 kilograms will be charged P1,300; those with GVW of 2,501 to 3,600 kilograms, P2,500; and GVW of 3,601 to 4,500 kilograms, P3,500.

Motorcycles with sidecar will pay P300, and without sidecar, P500. On the other hand, buses and prime movers with no more than 4,500 kilograms of GVM will pay P2,200 each. Any weight in excess of 4,500 kilograms will be charged extra. Trucks and trailers will pay a minimum of P7,000 each. -