Press Release
August 30, 2007

SHARE ROAD USERS' TAX TO LGUs -REVILLA

Senator Ramon "Bong" Revilla Jr. today pressed for the Local Government Units' (LGUs) participation in the construction and widening of roads in its territory out of the Motor Vehicles Users' Charge (MVUC), most commonly known as Road Users' Tax.

The senator stressed that the collections of the government from the MVUC should be extended to construction and modernization of local roads, not only to mere maintenance.

"We should not deviate from the real intention of the MVUC but we should also devote the fund for the construction of more roads and allow the LGUs to participate in this undertaking," said Revilla, chairman of the Senate Committee on Public Works.

According to Revilla, he wants to further strengthen the capability of the LGUs in implementing infrastructure projects by allowing them to have a hand not only in identification but also in the implementation.

"Right now, the General Appropriations Act allows LGUs to implement infrastructure projects funded by the national government provided they show capability to implement projects. We must decentralize the construction and maintenance of roads not only of national category but also of local," he pointed out.

Revilla observed that the collections from MVUC is not being spent wisely particularly in the rehabilitation of national roads where asphalt overlaying is commonly used.

He explained that asphalt is not suitable for a tropical country like the Philippines because it will eventually be destroyed by flooding and incessant rain.

"Asphalt is not durable. After a typhoon, you could see a recently asphalted road back to a state of disrepair. Concrete reblocking is much better," Revilla said.

Reports by the Department of Public Works and Highways (DPWH) revealed that total collections from MVUC reached to P31.025 billion from year 2001 to August 10 2006.

The lawmaker said he will push for the amendment of Republic Act (RA) 8794 or the Road Users' Tax Law so that there will be adequate resources for the widening of local roads nationwide.

"To address the usual traffic congestion, we should widen local roads connecting to national roads to make it a four-lane thoroughfare," he added.

RA 8794 states that it is a policy of the State to provide for and ensure adequate maintenance of national and provincial roads through sufficient funding.

All monies collected from the said tax shall be deposited in four special trust accounts in the National Treasury, namely: (1) Special Road Support Fund; (2) Special Local Road Fund; (3) Special Road Safety Fund; and (4) Special Vehicle Pollution Control Fund.

The Special Road Support Fund, the Special Local Road Fund and the Special Road Safety Fund shall be under the DPWH while the Special Vehicle Pollution Control Fund shall be under the Department of Transportation and Communication (DOTC).

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