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.
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.