DPWH explains Road User’s Tax

By July 23, 2006Inside News, News

DAGUPAN CITY–The persistent protests of the political opposition over the alleged rampant misuse of the Motor Vehicles User’s Charge (MVUC), more popularly known as Road User’s tax, by the national government prompted three national agencies to launch a road show to explain its relevance and mechanics to the various regions.

Embodied under RA 8794, the MVUC is a fee charged to the owner of a motor vehicle and collected as part of the annual registration fee of a vehicle to the LTO.

At a recent forum organized by the Philippine Information Agency (PIA), Department of Public Works and Highways, Land Transportation Office (LTO), the mechanics and status of the tax were discussed.

The Land Transportation Office (LTO) regional office based in San Fernando City, La Union said it posted total collection of P179, 913, 460.90 covering January to June 2006.

And, among the six LTO offices in Pangasinan and in entire region 1, Dagupan City office posted the highest collection amounting to P32.2 million.

Eighty percent of the collections go to the DPWH for the repair and maintenance of national roads throughout the country.

Engineer Rodolfo Dion, district engineer of the Second Pangasinan Engineering District, said that national roads have P86,000 per kilometer per year allocation for road routine maintenance.

Dion’s office receives about P13 million annually for maintenance of 151 kilometers of national roads under his district (the second and fourth districts of Pangasinan).

Five percent of the MVUC is exclusively for the maintenance of local roads, traffic management and road safety devices under the jurisdiction of city and provincial governments. – EVA

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