House to tax cars first before junk food

MANILA, Philippines — Taxes that “hit the rich” will be discussed before any tax on junk food and sweetened beverages, Albay Rep. Joey Salceda vowed as Congress is set to resume session on July 24.

The House of Representatives ways and means committee chaired by Salceda will prioritize four proposals to update motor vehicle user’s charge (MVUC) rates.

“We are considering a set of other options, including placing MVUC in the Tax Code, since the Road Board, which used to administer it, no longer exists anyway,” Salceda said.

He said the MVUC is “highly progressive” and his proposal will benefit more Filipinos.

“Only 5.9 percent of all Filipino households own any type of car, jeep or van. Meanwhile, half of Filipino households own some sort of motorcycle,” he said.

“My proposal is to exempt motorcycles from MVUC. Especially since it’s a means of living now, with delivery express services and the like. Tricycles will also be exempt under my proposal,” Salceda added.

Zero-interest loans for local jeepney manufacturers are also being planned for budget allotment, he said, as “imported modern ones are too expensive.”

“We need locally made cheaper ones, so that the jobs created are created here,” he added.

According to Japan International Cooperation Agency estimates, the “cost of traffic in the Greater Manila Area” is pegged at P1.227 trillion based on a 2017 study.

“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.