Before increasing excise taxes on junk food and sugary beverages, the House of Representatives tax panel will evaluate proposed hikes in the motor vehicle user's fee (MVUC).
Albay 2nd district representative Joey Salceda said he still has concerns about the planned food levies being pushed by the Departments of Finance and Health, and he wants to look into other solutions.
According to Salceda, five measures have been submitted to amend Republic Act No. 8794, which was passed 23 years ago, to impose a motor vehicle user's charge on owners.
He did not say whether the panel was considering repealing the junk food tax, which is scheduled to go into effect in 2025 under RA 10963, which was pushed through Congress in 2017.
The DOF's most recent proposal was to raise the rates in RA 10963 and move its implementation date from 2025 to 2024.
So the proposed motor vehicle user fee is essentially a second tax hike, albeit one that affects fewer individuals and is intended to be less inflationary.
Salceda is also proposing amendments to the new tax bill.
The economist-turned-lawmaker stated that the proposed amendments to RA 8794 "[are] highly progressive, and his proposal will benefit more Filipinos.
The base rates of the motor vehicle user's charge under RA 8794 range from P120 to P4,000, depending on the gross weight of the motor vehicle.
The new charge for passenger automobiles will range from P2,080 to P10,400 under the five pending measures, depending on the gross vehicle weight.
Utility vehicles, sports utility vehicles, buses, lorries, and trailers weighing 4,500 kilograms or more shall be charged a motor vehicle user's fee of P1.40 or more per kilogram of gross vehicle weight.
The bills also offer a set annual rise until 2025 and a 5% annual increase beginning in 2026.
Furthermore, the measures advocate for the earmarking of 45 percent of the levy's incremental income for the public utility vehicle modernization program.
