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House mulls road user’s tax hike

PhilStar Global logo PhilStar Global 8/18/2019 Jess Diaz
a van driving down a busy street filled with lots of traffic: House mulls road user’s tax hike © File House mulls road user’s tax hike

MANILA, Philippines — The House of Representatives is considering an increase in the road user’s tax, which the government collects from millions of owners of motor vehicles, including motorcycles.

The tax is in the form of higher annual vehicle registration fees collected by the Land Transportation Office (LTO). Fees vary depending on the type and weight of vehicle.

As of last year, there were 11.6 million vehicles registered, according to the LTO. That number represented an increase of 1.2 million over the 10.4 million in 2017.

Aside from the road user’s levy, the House committee on ways and means is recommending an increase in the excise tax on luxury vehicles costing at least P5 million.

In a letter to the administration’s economic managers, committee chairman Rep. Joey Salceda of Albay has committed the consideration and possible approval of these tax measures.

Salceda said the measures have been discussed in the meeting of House and Senate leaders with administration officials led by Executive Secretary Salvador Medialdea in Malacañang on Aug. 5.

Salceda did not say how much increase in road user’s tax and excise levy he would recommend to the House.

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