Higher taxes for second cars, LRT-2 conversion to BRT eyed

MANILA, Philippines - The Department of Transportation is now studying the possibility of slapping higher registration fees and taxes on the purchase of second cars, as well as converting the existing Light Rail Transit Line 2 (LRT-2) to a bus rapid transit (BRT) system to address congestion in Metro Manila’s roads.

“We are looking very closely into adding higher registration fees for second cars. We are looking very closely on putting taxes on second, third cars,” Transport Secretary Arthur Tugade said in a forum organized by commercial real estate services company Colliers International yesterday.

The agency is also considering making parking space a requirement before an individual would be allowed to purchase a car.

“It will be a mechanism akin or similar to what the other countries are doing. But it is still a plan…It is still under study,” Tugade said.

The move is being considered as the government looks for solutions to Metro Manila’s traffic, with more and more cars sold but no new roads being built.

The latest report of the Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association showed a combined sales of 197,448 vehicles in the first seven months, 26.5 percent higher than the 156,034 units in the same period last year.

Sales of the Association of the Vehicle Importers and Distributors also surged 103 percent in the first semester to 45,420 units from 22,371 in the same period in 2015.

Aside from new requirements for the purchase of additional cars, Tugade said the Transport department is likewise looking at turning the LRT-2 which covers Recto station in Manila until Santolan station in Pasig, to a BRT system where in buses would be operating within a dedicated right of way.

The conversion which could be done by either removing or covering the tracks, is being considered to address the LRT-2’s ageing system as well as maintenance.

Tugade said the concept is similar to what was done in cities like Hong Kong and Shanghai in China, where BRTs replaced the light rail transit.

“But this needs a lot of thinking. It needs a lot of planning and we have to get a lot of approval,” he said.

The operation and maintenance of the LRT-2 was among the projects rolled out under the public-private partnership program by the previous administration but has yet to go through bidding.

Earlier, Tugade said emergency powers from the Congress would be needed to address the country’s traffic problem.