Motorists face higher toll, traffic woes with VAT plan
Aside from paying higher toll, motorists may have to deal with traffic congestion at toll plazas on expressways if the Bureau of Internal Revenue (BIR) pushes through with its plan to impose a 12-percent Value Added Tax (VAT) on private motorists passing through tollways.
This developed as Toll Regulatory Board (TRB) spokesman Julius Corpus said current toll collection systems are not capable of identifying privately-owned vehicles from public utility vehicles (PUVs) which could create problems when BIR implements the plan.
“Current toll collection equipment can only distinguish motor vehicles based on size mainly. If they (toll collectors) employ physical and manual (identification of private vehicles), it will cause longer lines at the toll booths,” Corpus said in an interview.
“If the BIR pushes through with its plan to tax private vehicles, the TRB will be constrained to follow but then thorough study is needed on how to carry out the plan,” Corpuz said.
Though no exact date has been given when the plan will be implemented, BIR officials said the 12-percent VAT would first be imposed on private vehicles starting this year. Imposing VAT on toll could reportedly raise P2.5-billion revenue for the government during the initial year of implementation.
The BIR said the plan to impose VAT on toll fees dates back in 2005 but has been repeatedly deferred by Malacañang.



