Lawmakers have given up on the idea that, no matter the additional levies and charges that the government will impose, people will not stop buying cars. That’s Fact No. 1.
Also, lawmakers are aware that based on experience, the number-coding schemes did not work in easing congestion, simply because people—particularly those who can afford—will just buy new vehicles. That’s Fact No. 2.
And Fact No. 3: The government cannot put a cap on the manufacture and sale of cars.
Given all these, the riddle still remains: How do you untie the traffic Gordian knot?
Luckily, the lawmakers also know the answer—better mass-transport system and infrastructure.
Lawmakers also know that while the sale of cars cannot be stopped, imposing higher levies and charges will not only rein in auto sales, but will also generate additional revenues to improve the state of transportation in the country.
“It is better to improve our transport system…that’s why we need a tax reform to increase the revenue of the government and fund our infrastructure programs,” House Committee on Ways and Means Chairman Dakila Carlo E. Cua of the Lone District of Quirino said.
Capital spending
In an earlier interview with the BusinessMirror, Finance Undersecretary Karl Kendrick T. Chua said the government needs an additional P2.2 trillion in capital spending up to 2022 for the Duterte administration’s infrastructure and social programs.
Chua said half of the P2.2 trillion will come from the Duterte administration’s Comprehensive Tax Reform Package, which is composed of five tranches.
Chua is optimistic that the first tranche pending approval in the Senate will be passed by October. The first tranche seeks to lower personal income-tax rate.
Other measures
Deputy Speaker Gwendolyn F. Garcia of the Third District of Cebu said the government can resort to more creative measures to control the increasing number of cars that cause traffic in major thoroughfares.
“In other countries, like Hong Kong or Singapore, when you own a second car, the registration fees will be higher,” she said.
Consistent with this, Deputy Speaker Sharon S. Garin of AAMBIS-Owa party-list filed House Bill (HB) 3928 imposing higher fees for every additional vehicle purchased.
The bill, however, provides that persons engaged in the business of transportation or whose business requires more than one vehicle is not covered by the increased rates.
Garin, citing the Chamber of Automotive Manufacturers of the Philippines Inc., said the Philippines is seen as an important automotive market growth area in the region, as the volume of vehicles sold is expected to surge.
More cars on the road
She said domestic vehicle sales in 2020 would account to between 8 percent and 10 percent of the projected total sales of 5 million to 6 million units in the Asean.
“Metro Manila has been experiencing problems on traffic for more than 20 years now, almost 2.7 million vehicles ply through Metro Manila every day,” said Garin, citing figures from the Metropolitan Manila Development Authority (MMDA).
HB 3928 seeks to amend the current law on charges imposed to owners of all types of motor vehicles, or Republic Act 8794.
It imposes higher fees for every additional vehicle purchased. The more vehicles owned and registered, the higher the motor vehicle user’s charge (MVUC) imposed.
For the second vehicle of a person, the bill said the MVUC shall be twice the amount imposed under Executive Order (EO) 43, series of 1986, or the order “Restructuring the Private Motor Vehicle Tax”, plus 30 percent for the first year, 60 percent for the second year, 90 percent for the third year, 120 percent for the fourth year and 150 percent for the fifth year and after.
For the third vehicle of a person, the measure said the MVUC shall be thrice the amount imposed under EO 43, plus 40 percent for the first year, 80 percent for the second year, 120 percent for the third year, 160 percent for the fourth year and 200 percent for the fifth year and after. Rates for succeeding cars will be in accordance with the given pattern and formula.
Gordian knot
To also resolve heavy vehicular traffic in the capital, MMDA Chairman Danilo D. Lim said the agency is now eyeing the implementation of a two-day number coding scheme.
Currently, Lim added, there are around 2.5 million to 2.6 million registered vehicles in Metro Manila, more than double the maximum capacity of roads.
He said the problem on lack of infrastructure projects has been aggravated by the continued increase in the volume of vehicles in Metro Manila.
Number coding
However, Garcia asked the MMDA: “Has the number-coding scheme ever really worked?”
“The rich can always buy new cars [to avoid number-coding scheme]. When you see all the vehicles plying the Edsa route, you will notice that in order to escape the prohibition on the plate number, other drivers are using temporary plates,” she said.
The two-day number-coding scheme will just add more vehicles, the deputy speaker said.
“The reality is that those that really need to ply the route cannot afford to be inconvenienced because we don’t have better mass-transport system. So, how now? They cannot go to work, they will not be able to go to their businesses because their cars are prohibited on that particular date? That [two-day number-coding scheme] is just going to add more vehicles on the road,” she said.
So, Garcia added: “There are creative measures that the government can resort to in order to control the number of cars that are owned and are on the roads, but certainly not through the number-coding scheme.”
These measures are what the people have been demanding for decades now.
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