In the RUT a Study of the Road Users Tax and its Impact on the Filipino People

Abstract

The development of modern road systems has truly been very beneficial for man, not just his traveling for business or work but also for his pleasure. As more and more roads were made and as needs of people to travel increase, the demand for more motor vehicles and transport services have also increased. However, this also led to the government's problem of continuously maintaining the different passage ways in a particular country since it will cost them a lot of money. In the Philippines, there are only a few roads that could really be considered “good roads” while the majority of our thoroughfares are dilapidated, poorly maintained, jagged, and at most times unpassable. Unfortunately due to lack of funds, the government was not able to take any effective action to answer this problem. In the hopes of solving the road problem, the government used its taxation power to come up with the needed revenues. The result of which is RA 8794: An Act imposing a Motor Vehicle User's Charge on Owners of all types of Motor Vehicles and for Other Purposes or more popularly known as the Road Users’ Tax. The Road Users’ Tax aims to provide for and guarantee the adequate maintenance of all roads as well as to provide the necessary safety traffic devices to ensure road security. At the same time, this tax effectively increases the registration fees of all types of motor vehicles. The Road Users’ Tax (RUT), being recently implemented, is still new to a lot of people and only a few materials or documents are available regarding this tax. In this view, the researcher aims to provide at least enough information about the RUT so that people would be able to understand this tax law as well as to be able to gauge how this tax would affect their lives. More importantly, the researcher would also get the reactions of people regarding the RUT and analyze the corresponding impact this tax would have on them. The objectives of this research are: to study the different articles and provisions of the Road Users’ Tax: to draw insights on the physical (content) changes of the previous laws on vehicle registration and the new RUT; to examine the varied opinions of the Filipinos regarding the Road Users Tax (i.e. legislators, transport groups, private sector, public sector, students); and to establish the relevance of the Road Users Tax in Philippine society and its effect on our country’s future. The methods employed in the conduct of this research are library research, survey, and interview. This research is primarily a qualitative research. The results of the survey were analyzed using ratio and proportion, whereas the descriptive method was utilized for the data gathered from the interviews. The researcher is able to conclude from the results of the study that the Road Users’ Tax indeed provides a possible solution for the road problem. It focuses on the essential things that needs to be done, procures the collected money for the maintenance and improvement of roads, and safeguards this funds through the Road Maintenance Board. However, the RUT is still another tax and therefore another burden that the people can not afford to shoulder at a time when prices are going up while wages remain stagnant. The findings also revealed that despite of the advantages the RUT promises, the economic turmoil and additional suffering it would cause the public (especially the low-income group) would be too great that it defeats any good effect the RUT might have. Aside from this, the researcher also found out that the government has a record of uncollected taxes amounting to at least several billions of pesos. If only the government would do its job efficiently and effectively without any bias or prejudice, then there would really be no more need to impose more taxes to the already heavily burdened people. Strict, competent, and proper administration and enforcement of tax laws as well as the efficient collection of taxes would be the answer to the government's lack of resources.