Republic Pilippines EVE!
House pi deatecenena sf MAY 2017,
Quezon City

First Regular Session

HOUSE BILL NO. 5804

Introduced by Representative Luis Raymund “Lray" F. Villafuerte, Jr.

EXPLANATORY NOTE

On June 27, 2000, Republic Act No. 8794 (RA 8794) was enacted putting in place
the motor vehicle user's charge (MVUC) in lieu of the registration fee and the
Private Motor Vehicle Tax. Along with having a single law that provides for the
annual motor vehicle registration fees, RA 8794 increased the rates by 100% from
the previous levels but the increase in the rates was done in four tranches from
2001 to 2004.

It is noted that while Section 3 of RA 8794 grants the President the authority to
adjust annually the MVUC rates after the 4th year of its effectivity, the existing
rates, however, have not been adjusted since 2004 despite the difference in the
inflation rate from when the Act was enacted to until the present,

This measure proposes that MVUC rates be adjusted upward on the basis of the
officially published inflation rate computed cumulatively from 2005 to 2017 and
after the first year of implementation, the rates shall be automatically increased by
4% annually. Following this, the 2017 rates as compared to the 2000 and 2004
fates are as follows:

Type of Vehicle 2000 Rates 2004 Rates 2017 Rates
|. Private and Government
A. Passenger Cars
| (1) GVW Up to 1,600 kgs. P800 P1600 P2912
(2) GVW more than 1,600 1,800 3600 6,552
kgs. -2,300 kgs.
(3) GVW more than 2,300 4,000 8000 14,560
S.
te Utility Vehicles
GVW up to 2,700 kgs. P1,000 P2000 P3,640
GVW more than 1,000 + P20 per | 2000 + P40 per | 3,640 + P73 per
2,700 kgs. — 4,500 kgs. 100 kgs. of GVW 100 kgs. of 100 kgs. of
over 2,700 kgs. | __GVW over GW over



zl [2.700 kgs. 2.700 kgs.
B2. SPORTS UTILITY
VEHICLES |
‘GVW up to 2.700 kgs. P1150 P2300 Pa, 186
GVW more than 1,150 + P23 per | 2300 + P46 per | 4,186 + P84 per
2,700 kgs. — 4,500 kgs. 100 kgs of GVW | 100 kgs of | 100 kgs of GVW
over 2,700 kgs. | GVWover | over 2,700 kgs.
2.700 kgs.
c.M
Without sidecar Pi20 P240 P437
With side car 150 300 546
D. Buses
GVW more than 4,500 kgs. | P900+ P12 per | P1800+P24 | Pa276+ P44
100 kgs. Of per 100 kgs. Of | per 100 kgs. Of
GVW over 2,700 GVW over GVW over
kgs. 2,700 kgs. 2.700 kgs.
E. Trucks t
GVW more than 4,500 kgs | P900 + P12 per | P1800 +P24 | Pa27e+ Pad]
100 kgs.of GVW | per 100 kgs.of | per 100 kgs.of
over 2,700 kgs. | GVW over GW over
= 2.700 kgs. 2,700 kgs.
F. Trailers ale
| GVW more than 4,500 kgs.| P12 per 100 P24 per 100 |” P44 per 100
Kgs. OGVW | Kgs. OfGVW | Kgs. Of GVW
Il. For Hire
A. Pi Cars
1) GVW Up to 1,600 kgs. P450 P9300 P1638
(2) GVW more than 1,600 900 1800 3,276
kgs. —2,300 kgs. th
(3) GVW more than 2,300 2,500 5000 9,100
| kgs. i
[B. Utility Vehicles
GVW up to 4,500 kgs. P15 per 100 kgs. | P30 per 100 | P55 per 100
Of GVW kgs. Of GWW_|_kgs. Of GVW
C. Motorcycles zi
Without sidecar P150 P300 P546 |
With side car 240 300 546
D. Buses
GVW more than 4,500 kgs. | P15 per 100 kgs. | P30 per 100 P55 per 100
of GW __|_kgs. of GVW_|_kgs. of GVW
[E.Trucks
GVW more than 4,500 kgs | P900+P12 per | P1800+P24 | Pa2ve> P44
| 100 kgs.of GVW | per 100 kgs.of | per 100 kgs.of



‘over 2,700 kgs. | GVWover GVW over
2,700 kgs. 2,700 kgs.
F. Trailers
GVW more than 4,500 kgs. | P12 per 100 kgs. | P24 per 100 P44 per 100
Of GVW kgs. Of GVW kgs. Of GVW

The MVUC rates need to be adjusted in order to keep them updated and to
ensure buoyancy of the revenue system to sustain sufficient funding for the
provision of better infrastructure and social protection for the people.

Further, it is proposed that various road funds will be merged with the general
fund, and roads board shall be abolished for efficiency and better linkages with
budget. This further allows for better accountability of the various road funds for a
more effective program implementation and fund management.

As this bill aims to better manage the MVUC through merging with the general
appropriations fund, this will enable a more transparent and proper management
of the appropriation. This will also discourage misuse of the funds and apportion it
exactly,

The revenues from the proposed increase of MVUC rates will be ‘one of the
sources of funding that will finance road infrastructure projects of the government.
Roads are especially important for transport and accessibility for the citizenry, As
a priority of this administration and a matter of national importance, infrastructure
programs help underdeveloped areas in the country to be provided proper and
appropriate facilities. The revenues will therefore aid in the vision of a more
developed infrastructure program for the country.

In light of the foregoing, passage of this bill is eamestly sought.

t hypod ,

Luis IND “I '/F. VILLAFUERTE, JR.


Republic of the Philippines
House of Representatives
Quezon City
Seventeenth Congress
First Regular Session

A
HOUSE BILL NO. 580 -

" F. Villafuerte, Jr.

Introduced by Representative Luis Raymund “Lray

AN ACT
AMENDING REPUBLIC ACT 8794 ENTITLED “AN IMPOSING A MOTOR
VEHICLE USER'S CHARGE ON OWNERS OF ALL TYPES OF MOTOR
VEHICLES AND FOR OTHER PURPOSES”,

Be it enacted by the Senate and House of representatives of the Philippines in
Congress assembled;

SECTION 1. Title — This Act shall be known as the “2017 MVUC Law”

SEC 2. Declaration of Policy — \t is hereby declared as the policy of the State to
ensure buoyancy of the revenue system to sustain Sufficient funding for the
provision of better infrastructure and social protection for the people.

SEC 3. Section 2 of Republic Act No.8794 is hereby amended as follows:

Section 2. Coverage. [in lieu of the registration fee under section
8 Republic Act No. 4136, as amended by Batas Pambansa Bilang 74, and
the Private Motor Vehicle Tax under Executive Order No. 43, series of
1986, there is hereby] THE MOTOR VEHICLE USER CHARGE SHALL
CONTINUE TO BE imposed on every motor vehicle, whether for hire or for
private use, including government motor vehicles as more fully provided in
Section 3 hereof, which shall be collected from and paid by the owner of
the motor vehicle.

{(a) For private passenger cars registered as of the date of the effectivity of
this Act, the MVUC to be paid shall be the private motor vehicle tax under
Executive Order No. 43, series of 1986, plus twenty-five percent (25%) for
the first year, fifty percent (50%) for the second year, seventy five percent
(75%) for the third year, and one hundred percent (100%) for the year and
thereafter: Provided, however, That private passenger cars to be registered
for the first time after the effectivity of this Act, shall be subject to the
MVUC rates prescribed in section 3(b) hereof.

(b)Except as provided under 3(a) hereof, for each motor vehicle under


each of the categories as herein provided, the MVUC shall be collected
from and paid by the vehicle owner, at the following base rates plus twenty-
five percent (25%) in the first year from the effectivity of this Act; the said
base rates plus fifty percent (50%) in the second year from the effectivity of
this Act; the said base rates plus seventy-five percent (75%) in the third
year from the effectivity of this Act; and said base rates plus one hundred
Percent (100%) in the fourth year from the effectivity of this Act and their
after: Provided, That the MVUC for the sports utility vehicles shall be fifteen
percent (15%) higher than the MVUC herein set for private utility vehicles:
Provided, further, That motorcycles for hire with sidecars shall not pay
more than three-hundred pesos (300.00),}

Section 3. Rates of Motor Vehicle User Charge.

[(@) For private passenger cars registered as of the date of the effectivity
of this Act, the MVUC to be paid shall be the private motor vehicle tax
under Executive Order No. 43, series of 1986, plus twenty-five percent
(25%) for the first year, fifty percent (50%) for the second year, seventy
five percent (75%) for the third year, and one hundred percent (100%) for
the year and thereafter: Provided, however, That private passenger cars to
be registered for the first time after the effectivity of this Act, shall be
‘subject to the MVUC rates prescribed in section 3(b) hereof.

(b) Except as provided under 3(a) hereof, for each motor vehicle under
each of the categories as herein provided, the MVUC shall be collected
from and paid by the vehicle owner, at the following base rates plus
twenty-five percent (25%) in the first year from the effectivity of this Act;
the said base rates plus fifty percent (50%) in the second year from the
effectivity of this Act; the said base rates plus seventy-five percent (75%)
in the third year from the effectivity of this Act; and said base rates plus
‘one hundred percent (100%) in the fourth year from the effectivity of this
Act and their after: Provided, That the MVUC for the sports utility vehicles
shall be fifteen percent (15%) higher than the MVUC herein set for private
utility vehicles: Provided, further, That motorcycles for hire with sidecars
shall not pay more than three-hundred pesos (300.00),]


THE MOTOR VEHICLE USER CHARGE PROVIDED UNDER REPUBLIC
ACT 8794 IS HEREBY INCREASED AS FOLLOWS:

Type of Vehicle [Base Ratesasof 2017 RATES
2000'

|, Private and

Government

A. Passenger Cars

(1) GVW Up to 1,600 P800 P2912

kgs.

(2) GVW more than 1,800 6,552

1,600 kgs. -2,300 kgs.

(3) GVW more than 4,000 14,560

2,300 kgs.

B.1, Utility Vehicles

GVW up to 2,700 kgs. P1,000 P3,640

GVW more than 1,000 + P20 per 100 3,640 + P73 per

2,700 kgs.—4,500 kgs. _kgs. of GVW over 100 kgs. of GVW
2,700 kgs. over 2,700 kgs.

B.2. SPORTS UTILITY

VEHICLES

GVW up to 2,700 kgs. P1,150 P4,186

GVW more than 1,150 + P23 per 100 4,186 + P84 per

2,700 kgs.—4,500 kgs. _kgs of GVW over 100 kgs of GVW
2,700 kgs. over 2.700 kgs.

C. Motorcycles

Without sidecar P120 P437

With side car 150 546

D. Buses

GVW more than 4,500 P900+P12per100 3,276 + P44 per

kgs. kgs. OfGVWover — 100 kgs. Of GVW
2,700 kgs. over 2,700 kgs.

€. Trucks

GVW more than 4,500 P900 + P12 per 100 P3,276 + P44 per

kgs kgs. of GVW over 100 kgs. of GVW
2,700 kgs. over 2,700 kgs.

F. Trailers

GVW more than 4,500 P12 per 100 Kgs. of P44 per 100 Kgs.
GVW of GVW

kgs.
Il. For Hire
A. Passenger Cars

* These rates have been increased in 2001. 2002, 2003 and 2004 through DPWH Department Order
No. 161, s. of 2000 re: IRR of RA 8794


(1) GVW Up to 1,600 P450 P1,638

kgs.

(2) GVW more than 900 3,276
1,600 kgs. -2.300 kgs.

(3) GVW more than 2,500 9,100
2,300 kgs.

B. Utility Vehicles
GVW up to 4,500 kgs. P15 per 100 Kgs. Of P55 per 100 Kgs.
Of GVW

Gvw
C. Motorcycles
Without sidecar P150 P546
With side car 240 546
D. Buses
GVW more than 4,500 P15 per 100 Kgs. of P55 per 100 Kgs.
kgs. Gvw of GVW
E. Trucks
GVW more than 4,500 P900+P12per100 P3,276 + P44 per
kgs kgs.of GVW over 100 kgs.of GVW
2,700 kgs. over 2,700 kgs.
F. Trailers
GVW more than 4,500 P12 per 100 Kgs. Of P44 per 100 Kgs.
kgs. cw] Of GVW

After the first year from the effectivity of this Act, THE RATES [ the
President of the Philippines may adjust the rates- Jcontained in Section 3
hereof [which] shall be AUTOMATICALLY INCREASED BY 4%
ANNUALLY. [The President may adjust such rates not more than once

every five (5) years.)

SEC 4, Government Motor Vehicles — The manner of payments of the user's
charge on government motor vehicle shall be in accordance with the procedure
that shall be promulgated by the Secretary of the Department Management
(DBM).

SEC 5. Reclassification and New Models of Motor Vehicle — The Land
Transportation Office (LTO) shall submit any recommendation for any change in
motor vehicles above-listed for approval by the Secretary of the Department of
Transportation and Communications (DOTC). All manufacturers and/or
assemblers of motor vehicle shall, not later than three (3) months prior to the
introduction of any new model of motor vehicle in the market, submit the
specification of the new model and the rate of the MVUC under which the new
model shall fall. The LTO shall also release the proper classification of said new
motor vehicle model on or before the scheduled release of such new model to the
market, but in no case later than three (3) months after its receipt of the new
motor vehicle's specifications.


SEC 6. Penalty for Overloading — An amount equivalent to twenty five percent
(25%) of the MVUC shall be imposed on trucks and trailers for loading beyond
their prescribed gross vehicle weight: provided, That no axle load shall exceed
thirteen thousand five hundred kilograms (13,5000kgs).

SEC 7. Section 7 of RA 8794 is hereby amended to read as follows:

Section 7. Disposition of Monies Collected. All monies collected under
this Act shall ACCRUE TO THE GENERAL FUND TO FINANCE ROAD
INFRASTRUCTURE PROJECTS OF THE GOVERNMENT WHICH SHALL
BE ALLOCATED IN THE ANNUAL GENERAL APPROPRIATIONS ACT. [
be earmarked solely and used exclusively (1) for road maintenance and the
improved of the road drainage, (2) for the installation of adequate and
efficient traffic lights and road safety devices, and (3) for the air pollution
control.

All such monies collected shall be deposited in four (4) special trust
accounts in the National Treasury, namely: (1) Special Road Support Fund;
(2) Special Local Road Fund; (3) Special Road Safety Fund; and (4)
Special Vehicle Pollution Control Fund. The distribution of collections under
this Act shall be as follows:

1. Eighty percent (80%) shall be allotted to and placed in the Special Road
‘Support Fund;

2. Five percent (5%) shall be allotted to and placed in the Special Local
Road Fund;

3. Seven and one half percent (7.5%) shall be allotted to and placed in the
Special Vehicle Pollution Control Fund.

The Special Road Support Fund, the Special Local Road Fund shall be
under the DPWH, whereas the Special Vehicle Pollution Control Fund shall
be under the DOTC.

Seventy percent (70%) of the Special Road Support Fund shall be used for
the maintenance of, and the improvement of drainage of national primary
roads. The remaining thirty- percent (30%) thereof shall be allocated and
use for the maintenance, and improved of drainage of national secondary
roads throughout the country.

The cost of installation of adequate and efficient traffic lights and road
safety devices throughout the country, where such traffic lights and safety
devices are needed, shall be taken from the Special Road safety devices.

The Special Local Road Fund shall be apportioned to provincial and city
governments in accordance with the vehicle population and size of the road


network under their respective jurisdictions, and shall be used exclusively
for maintenance of local roads, traffic management and rod safety devices.

A Road Board to implement the prudent and efficient management and
utilization of the special funds shall be organized by the President of the
Philippines. The Road Board shall be composed of seven (7) members,
with the secretary of the DPWH as ex-officio head, and the secretaries of
the Department of Finance, Budget and management, and the
Transportation and Communication, as ex officio members. The remaining
three (3) members shall come from transport and motorist organization,
which have been in existence and active for the last five (5) years prior to
this Act. They shall be appointed for the term of two (2) years each by the
President of the Philippines upon the recommendation of the secretaries of
the DPWH and the DOTC.]

SEC 8. Section 8 of RA 8794 is hereby repealed.

[Section 8. Status of the Special Funds.— The four (4) special funds
established under this Act shall be distinct and separate from and in addition
in any appropriation authorized and granted yearly to the DPWH and the
DOTC. To cover expenditures for the identified objects of expenditures
under this Act. Congress shall continue to appropriate an amount in the
General appropriations Act for road maintenance of the DPWH: Provided,
however, That any savings for each year out of such appropriation shall
revert to the General Fund. Any savings from the special funds created
herein shall accrue to these respective special funds.]

SEC 9. Section 9 of Republic Act No 8794 shall be amended as follows:

Section 9. Implementing Rules and Regulation.-The [Secretaries of the]
DPWH, [and the DOTC] DBM, DOF AND THE BTR shall jointly by thirty (30)
days from the effectivity of this Act, promulgate the rules and regulation to
implement THE [and carry out the intent, objectives, purposes and]
provisions of this Act. [, including such structural and procedural
improvement in the systems and agencies concemed as may be necessary
to ensure the prudent, wise, effective and efficient utilization of the special
funds established under this Act: Provided, That the secretary of the DPWH
shall prepare the portion of their implementing rules and regulation
pertaining to the Special Road Support Fund, the Special Local Road Fund,
and the Special Road Safety Fund, and the Secretary of the DOTC shall
prepare the portion of the implementing rules and regulation pertaining to the
collection of the MVUC staffed under Section 3 of this Act and on the
disposition of the monies acquiring to the Special Pollution Control Fund.]


SEC 10. Section 11 of Republic Act No 8794 shall be amended as follows:

Section 11. Repealing Clause — [Except as provided under Section 3
hereof, all other provision of Executive Order No. 43, series of 1986, and
section 8 of Republic Act No. 4136, as amended by Batas Pambansa Bilang
74, and) All other laws, orders issuance, circulars, rules and regulation or
parts thereof, which are inconsistent with the provision of this Act are hereby
repealed or modified Accordingly.

SEC 11. Separability Clause - |f any provision of this Act is declared
unconstitutional or invalid, other parts or provision hereof not affected thereby
shall continue to be in full force and effect.

SEC 12. Effectivity — This Act shall take effect fifteen (15) days following its
publication in at lease two (2) newspapers of general circulation

APPROVED,