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City, DPWH ink MOA on road users tax
Soon the city government could already avail of its share in the road users tax (RUT) This, after the Sangguniang Panglungsod gave Mayor Jerry Treñas the authority to enter into a Memorandum of Agreement (MOA) with the Department of Public Works and Highways (DPWH).
The approval of the City Council was sought for the transparency and public accountability in the use of the RUT. It was however not discussed in the august body how much is the city's share.
Under Republic Act 8794 or the Motor Vehicle Users Charge Law, the road users tax collections should be exclusively used for road maintenance and improvement of road drainage, for the installation of adequate and efficient traffic lights and road safety devices and for air pollution control.
To note, the city has yet to receive its share of the road users tax. The RUT collections are deposited in four special accounts in the National Treasury. The four accounts are the Special Road Support Fund, Special Local Road Fund, Special Road Safety Fund and Special Vehicle Pollution Control Fund.
The funds are administered by the Road Board. The Road Board is composed of heads of Department of Finance, Budget and Management, Department of Public Works and Highways, Department of Transportation and Communications and three representatives from transport and motorist organization.
Earlier, Malacañang was accused of using P.25 billion road user’s tax to entice members of Congress to kill the impeachment complaint against President Gloria Macapagal-Arroyo. Fifth district Rep. Rolex Suplico was very vocal in denouncing the Arroyo administration with regard to the improper use of road users tax.