More taxes and fees for additional vehicle purchased

Updated Aug 22, 2017 | Same topic: Latest Traffic Updates

House Bill 3928 will impose a motor vehicle user’s charge (MVUC) on owners of all types of motor vehicles.
House of Representatives Deputy Speaker Sharon Garin has filed House Bill 3928 seeking to increase the excise tax automobiles for every additional vehicle purchased to lower the high volume of cars contributing to the perennial traffic problem in Metro Manila.
 
The bill, which proposes amendment to Republic Act 8794 or the Motor Vehicle User’s Charge Law, will impose a motor vehicle user’s charge (MVUC) on owners of all types of motor vehicles.

>>>  View more: House Bill 5636 to raise excise taxes on automobiles
 
A man waling along a line of new cars

House Bill 3928 seeking to increase the excise tax automobiles for every additional vehicle purchased
 
>>> Local automakers and importers are still pushing for lower excise tax rates and wider price brackets in the Senate. Click to find out.

In detail, the more cars owned and registered, the higher the MVUC should be imposed. The second car of a person shall have the MVUC that’s 30% higher for the first year, 60% for the second year, so on and so forth.
 
As for the succeeding vehicles, the MVUC will be increased at a rate in accordance to the given pattern and formula.
 
Garin as quoted as saying: "Persons engaged in the business of transportation or whose business requires more than one vehicle is not covered by the increased rates.”
 
The volume of cars sold is expected to surge as the Philippines’ auto market is on the verge of setting a new sales record. Almost 2.7 million cars ply through the metro every day, which can lead to an increase in traffic problems. Therefore, this bill aims to lower the growing volume of cars in Metro Manila.

>>> The Philippines finished as the second fastest growing automotive market in Southeast Asia in the first quarter of the year. Read  our article for more information.
 
Cars parked in a small ground

The more cars owned and registered, the higher the MVUC should be imposed
 
>>> Raising more excise taxes on luxury vehicles is a part of House Bill 5636 now pending before the Senate. Read our article for more details.

Garin further explained: "This bill is in conjunction with other measures of improving access roads and government projects in addressing the traffic situation.”
 
The Department of Transportation and the Department of Public Works and Highways will be the lead agencies in executing and drawing up implementing rules and regulations.

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