Home » Customs & Trade » Grain traders want road user’s tax amendment

THE Philippine Confederation of Grain Association (PhilConGrain) is urging government to amend Republic Act 8794 or the Road User’s Tax, particularly its sixth section.Section 6 provides for the imposition of a maximum load limit for all types of motor vehicles, including cargo trucks.The motor vehicle user charge became effective January 2001 but implementation of Section 6 was deferred due to the clamor of grain traders.

The road user’s tax was one of the conditions agreed upon in negotiations for the construction, improvement and operation of the North Luzon Expressway. With the law’s impending implementation, grain traders now want an amendment to the law, specifically the load limit provision.

Joji C. Co, Jr., president of PhiConGrain, said the lack of infrastructure such as farm-to-market roads contributed to the drop in agricultural production especially rice production."With impending implementation of the road user’s tax, rice industry stakeholders will definitely increase the price of their products because of increased cost," Co explained.He added that the reduced load will mean decreased volume, eventually resulting in higher freight cost.

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