A MEASURE creating a special mass transit system support fund, which will be financed by the road users’ tax, has been filed in the Senate.
Senate Bill No. 1049, filed by Senate President Pro Tempore Ralph G. Recto, proposes to amend Republic Act 8794, or the Motor Vehicle User’s Charge (MVUC) Act, by earmarking proceeds to develop a mass transit system.
“The cost of traffic in Metro Manila, quantified by wasted time, fuel, and lost human productivity, was estimated at P3.5 billion a day in 2017,” Mr. Recto said in the explanatory note, citing a study by the Japan International Cooperation Agency.
He added that this is projected to increase to P5.4 billion daily by 2035.
“According to reports, Metro Manila may soon be ‘uninhabitable’ if roads and other infrastructure are not upgraded immediately as the volume of vehicles sold is expected to surge to 500,000 by 2020,” he also said.
If passed, the measure will create a special support fund administered by the Department of Transportation (DoTr).
The fund will support the construction, improvement and rehabilitation of mass transit systems, and can be used for acquiring right-of-way.
At present, the MVUC is earmarked for road maintenance, improving road drainage, the installation of traffic lights and road safety devices as well as air pollution control.
Mr. Recto said based on 2019 Budget of Expenditures and Sources of Financing, the MVUC balance, as of 2017, was at P28.13 billion. Revenue in 2019 is expected to amount to P13.93 billion.
The MVUC law provides that 80% of the fund be allotted to the Special Road Support for the maintenance and improvement of drainage of primary and secondary national roads; while 7.5% is to fund the Special Vehicle Pollution Control program, with 5% going to the Special Local Road Fund. — Charmaine A. Tadalan
