Exemption of tricycles from road user's tax sought

A senator has filed a bill seeking to exempt tricycle operators from paying the Motor Vehicle User’s Charge, or more commonly known as the road user's tax. Senator Jinggoy Estrada filed Senate Bill 2416, which seeks to amend Republic Act 8794 that imposes tax on owners of all types of motor vehicles upon registration, whether for hire or for private use, including government vehicles. He noted that most tricycle drivers only use secondary roads or side streets, hence they are only indirect beneficiaries of the road user’s tax, which is supposedly used to for the maintenance and improvement of national and provincial roads. “With this proposed measure, we can lessen the burden on the drivers and owners who utilize tricycles as their only means of livelihood," he said in a statement released Wednesday. The senator said his proposal is "consistent" with the government’s efforts of delivering reforms to society. “While the administration is currently searching for more sources of revenues to fund its social service projects, I believe that it is also the policy of the State to help the poor and relieve them of unnecessary and unjust expenditures," he said. Estrada said the road user’s tax remains to be a main revenue source for the government. Citing data from the Bureau of Internal Revenue, he said road user’s tax collections amounted to P60.5 billion from 2001 to 2009. — Kimberly Jane Tan/LBG/KBK, GMANews.TV