President Ferdinand R. Marcos Jr. is carefully weighing the potential impact of a proposed hike in the Motor Vehicle User’s Charge (MVUC) to ensure a fair outcome for both state finances and Filipino motorists, Malacañang said Thursday.
Palace Press Officer Claire Castro confirmed during a news briefing that the administration has yet to adopt a final stance on the Department of Finance’s (DOF) recommendation, emphasizing that all proposed tax adjustments are undergoing thorough review.
“For now, this is only a proposal, so it is still being reviewed. The President has yet to take a final position on the matter,” Castro said, speaking partly in Filipino.
The DOF has proposed a 109-percent increase in the road user’s tax, which has remained unchanged for over two decades since 2004.
Under the department’s proposal, the MVUC for a standard light passenger car would increase from P1,600 to P3,344, while the charge for heavy trucks would rise from P2,952 to P6,170.
Acknowledging the burden any tax increase places on household budgets, Castro stressed that the administration is treading cautiously.
“All tax measures definitely affect people’s pockets, and they must be carefully studied to determine whether they would truly be beneficial in increasing government revenue,” Castro noted. “The administration will study what would be best for both the government and motorists.”
Addressing concerns over whether raising vehicle fees contradicts other pending administration policies,such as tax relief measures for the middle class and micro, small, and medium enterprises (MSMEs) under the proposed PROGRESS bill, Castro reiterated that all related economic measures remain under active evaluation to prevent conflicting policy outcomes.
“That is why this will be studied first, because we need to find the right balance,” she explained. “We must assess the full impact to determine what is truly advantageous for both the state and the driving public.”