Congress Proposes Increase in Motor Vehicle User's Charge (MVUC)

Congress Proposes Increase in Motor Vehicle User's Charge (MVUC)

Updated on June 11 2024

One responsibility that all vehicle owners must do 3 years after purchasing a brand new vehicle, and every year thereafter is registering their vehicles. This may range from P1,600 for smaller vehicles, to P12,000 for larger, older vehicles.

While registration fee, officially known as Motor Vehicle User's Charge (MVUC) is surely not cheap, the government needs to collect this to make sure they have enough funds to maintain out roads. Now, congress thinks that its not enough.

In a report by the Philippine Daily Inquire, the House of Representatives tax panel said that it is considering the proposal to hike up the rates for Motor Vehicle User’s Charge before hiking up the rates on snacks and sugary drinks. Albay Representative Jose Ma. Salceda, said “We will discuss taxes that hit the rich first. That’s our constitutional duty. I still have questions about the proposed tax increase on sweetened beverages, and the proposal for salty food taxes. I also want to consider other options, including closing some of the tax exemptions to the sweetened beverage tax.”

In line with the Representative's views on taxing more well-off citizens first, the proposal also seeks to exempt motorcycles and tricycles from the fee increase. “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 said.