Due to the TRAIN Law, the cost of fuel and new vehicles are now on the rise. Unfortunately, the Motor Vehicle registration fees also catch the trend, recently being announced to increase by next year.
According to a report of The Manila Bulletin, the Department of Finance is in preparation for an Executive Order which will increase the Motor Vehicle User’s charge (MVUC).
The Republic Act 8794 cited that imposing higher registration charges on car owners is under authority of the President. The rise is only affected by 2 things: the rate adjustment (can be made once each 5 years) and the Consumer Price Index.
The Department of Finance is in preparation for an Executive Order which will increase the Motor Vehicle User’S charge
In fact, MVUC rates haven’t received any change since 2004. It is under Duterte’s control and now the Executive Order will also wait for an approval from the President.
The current inflation now hovers at 5%, which makes the registration rate be expected to increase by the same amount in the next year. It also means that the current registration fee of P2,000 may go up to P2,100 by 2019.
In fact, MVUC rates haven’t received any change since 2004
The rise in MVUC rates is considered to be the first step in the planned changes of the Department of Finance, in terms of motor vehicle registration. Besides, the department is also working to fix the MVUC system’s base rates.
>>> Click here to catch latest car news worldwide