Press Release
August 25, 2010

Jinggoy wants passenger tricycles exempted from road user's tax

Senate President Pro Tempore Jinggoy Ejercito Estrada wants "motorcycles for hire with sidecar," or commonly known as ordinary passenger tricycles, to be exempted from the Motor Vehicle User's Charge (MVUC).

Senate Bill 2416 filed by Sen. Estrada seeks to amend RA 8794 to exempt tricycles from the coverage of MVUC or the road user's tax.

Republic Act No. 8794 imposes a motor vehicle user's charge on owners of all types of motor vehicles upon registration, whether for hire or for private use, including government motor vehicles. The said tax collection is used to ensure the adequate maintenance and improvement of national and provincial roads through sufficient funding.

"We intend that with this proposed measure, we can lessen the burden on the drivers and owners who utilize tricycles as their only means of livelihood," Sen. Estrada says.

Sen. Estrada further stressed that his bill is consistent with the government's efforts of delivering reforms to society. "While the administration is currently searching for more sources of revenues to fund its social service projects, I believe that it is also the policy of the State to help the poor and relieve them of unnecessary and unjust expenditures."

Sen. Estrada adds that most tricycle drivers ply on secondary roads or side streets, thus they are not considered as direct beneficiaries of the road user's tax.

Road User's Tax remains to be a main revenue source for the government, after the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC). From 2001 to 2009, road user's tax collections amounted to P60.5 billion.

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