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Recto bares plan to double car fees

BY: Mario Casayuran

Senate President Pro Tempore Ralph G. Recto revealed yesterday that the government has a triple whammy tax proposal on vehicles.

Already known are the proposed additional taxes on motor vehicles and on the fuels that run them.

“Not yet on the public radar is the third one, which seeks to double car registration fees, or what is officially known as the Motor Vehicle User’s Charge (MVUC),’’ he said.

Under the proposal, the MVUC on what is classified as a medium passenger car, one which has gross vehicle weight of 1,601 kilos to 2300 kilos, will go up to P6,552 from P3,600.

Current rates were pegged in 2004, as the fourth tranche of the fees mandated by RA 8794, which took effect in 2000.

Recto pointed out that one of the weaknesses of the Department of Finance (DoF)-endorsed proposal is that it merely revises the rates stipulated in RA 8794, when the pressing revisions it needs cover the way the collections are earmarked and spent.