MVUC hike still under review

Malacañang said last week that the proposed increase in the motor vehicle user charge (MVUC) remains under review, with President Ferdinand Marcos Jr. yet to make a final decision on the measure.

The Department of Finance (DOF) proposal forms part of broader efforts to strengthen the government’s excise tax system and stabilize state revenues, but the Palace said its potential impact on motorists must first be carefully assessed.

Palace Press Officer Claire Castro told reporters that the proposed increase remains subject to further study.

“Sa ngayon po, ito pa lamang ay proposal. So nire-review ito. Wala pa pong final position ang ating Pangulo (At present, this is still a proposal. So, it is being reviewed. Our President does not yet have a final position on the matter),” Castro said.

She said the government must weigh the revenue gains from a higher MVUC against its potential financial burden on motorists.

“Of course, lahat po ng tax measures, definitely, mabigat po ito sa bulsa. At dapat pag-aralang mabuti kung makabubuti ba ito para ma-increase ang revenue ng gobyerno (Of course, all tax measures definitely have an impact on people’s pockets. It should be carefully studied to determine whether increasing government revenue through this measure would be beneficial),” she said.

“But still, pag-aaralan po ito kung ano ang mas mainam both sa gobyerno at sa mga motorista (this will be studied to determine what would be best for both the government and motorists),” Castro added.

Asked whether the proposal could run counter to President Marcos’ efforts to support the middle class and micro, small and medium enterprises (MSMEs), Castro reiterated that its economic impact must be carefully considered before any decision is made.

The MVUC is a mandatory fee collected by the Land Transportation Office (LTO) to finance road maintenance and air pollution control programs.

Current MVUC rates vary depending on a vehicle’s type, weight and age, ranging from ₱120 to more than ₱4,000.

A higher MVUC could increase the cost of vehicle ownership for motorists, while potentially providing the government with additional funds for road infrastructure and related programs.

The Palace has yet to announce when the President is expected to make a final decision on the proposed increase.