MANILA, Philippines, June 29 ----- The House of Representatives tax panel will consider proposed increases in the motor vehicle user’s charge (MVUC) before moving forward and increasing excise taxes on junk food and sweetened drinks.
“We will discuss taxes that hit the rich first. That’s our constitutional duty,” said Albay Rep. Jose Ma. Salceda, chair of the House committee on ways and means. The lawmaker said he still has questions about the proposed taxes on food being pushed by the Department of Finance (DOF) and Department of Health, and he wants to consider other options. “The proposal to allow industrial users to directly import sugar in exchange for higher sugary drink taxes makes some sense from a gross value-added perspective,” Salceda said.
“The DOF and the committee will sit down on the modalities and the balancing act first. There’s a sweet spot here,” he added. Salceda said there were five bills filed to amend Republic Act No. 8794, passed 23 years ago, to impose a motor vehicle user’s charge on owners.
Apart from updating the rates in RA 8794, the five measures also push for the exemption of motorcycles, with or without sidecars, from the motor vehicle user’s charge. “Only 5.9 percent of Filipino households own any type of car, jeep, or van. Meanwhile, half of Filipino households own some sort of motorcycle,” Salceda pointed out.
Source: inquirer.net
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