Republic of the Philippines
HOUSE OF REPRESENTATIVES

* TIME 11:58am

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NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO.5918

Introduced by Representative Rex Gatchalian

AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND AMENDING
FOR THIS PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS AMENDED

EXPLANATORY NOTE

The vision in implementing the motor vehicle users charge (MVUC) or Package
1C of the Comprehensive Tax Reform Program is two-pronged: to provide adequate
funding for the maintenance of national and provincial roads and to address air

pollution from motor vehicles.

This bill reassigns the proceeds from the MVUC originally assigned for road
maintenance and the improved of the road drainage; installation of adequate and
efficient traffic lights and road safety devices; and the air pollution control,? to
construction, improvement, and rehabilitation of our mass transit system, including
the acquisition of road right-of-way for such projects. The proceeds shall be called
the Special Mass Transit Support Fund, which shall be under the Department of
Transportation.

One of the main reasons for the reassignment is to improve the mass
transportation in the country. According to Japan International Cooperation Agency,
in 2018, the economic cost of transportation in Metro Manila has risen to P3.5 billion
a day. The situation could get worse to P5.4 billion by 2035 if interventions would
not be made. Availability of funds to finance mass transit projects would finally push

! Department of Finance, Motor Vehicle Users Charge, available at https://taxreform.dof.gov.ph/tax-reform-
packages /motor-vehicle-users-charge /#:~:text~The?20motor%2Ovehicle%20users%20charge,air%20poltution
S.2otrom20motor"20vehicles.

2 RA. No. 8794, Sec. 7.

S DATE November 8, 022 %p|


for the realization of new transit systems in the country, resulting to more
sustainable urban transportation system network. It would further enhance
economic development as the mass transit system addresses mobility issues among
the working class.

In view of the foregoing, the passage of this bill is earnestly sought.

IN. REX GATCHALIAN
Representative
I*District, Valenzuela City


ONADAWDHH

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Republic of the Philippines
HOUSE OF REPRESENTATIVES

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 5918

—_—_——_—_

Introduced by Representative Rex Gatchalian

—___—————

AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND AMENDING
FOR THIS PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS AMENDED

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title. — This Act shall be known as the "Special Mass Transit
System Support Fund Act’.

Sec. 2. Disposition of Monies Collected. — Section 7 of R.A. No. 8794, or “An
Act Imposing a Motor Vehicle User’s Charge on Owners of All Types of Motor Vehicles
and For Other Purposes”, as amended, is hereby further amended to read as follows:
"Sec. 7. Disposition of Monies Collected. — All monies collected
under this Act shall be [remitted to the National Treasury-under a special
eccount_in_the—General_Fund_te—be] earmarked solely AND USED
EXCLUSIVELY for the construction, [upgrading-repair,] IMPROVEMENT,
and rehabilitation of [roads,—bridgesand-road—drainage] OUR MASS
TRANSIT SYSTEM, INCLUDING THE ACQUISITION OF ROAD RIGHT-
OF-WAY FOR SUCH PROJECTS to be included in the annual General
Appropriations Act.
ALL MONIES COLLECTED SHALL BE REMITTED TO THE
NATIONAL TREASURY UNDER A SPECIAL ACCOUNT IN THE GENERAL
FUND TO BE KNOWN AS THE SPECIAL MASS TRANSIT SYSTEM
SUPPORT FUND. THE SAID FUND SHALL BE UNDER THE
DEPARTMENT OF TRANSPORTATION (DOTR).



ONYAMHARWHH

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Sec. 3. A new Section 8 is hereby inserted after Section 7 of the same Act to
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"SEC. 8. THE SPECIAL FUND ESTABLISHED UNDER THIS ACT
SHALL BE DISTINCT AND SEPARATE FROM AND IN ADDITION TO
ANY APPROPRIATION AUTHORIZED AND GRANTED YEARLY TO THE
DOTR 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 THE CONSTRUCTION, IMPROVEMENT AND
REHABILITATION OF THE MASS TRANSIT SYSTEM UNDER THE
DOTR: PROVIDED, HOWEVER, THAT ANY SAVINGS FOR EACH YEAR
OUT OF SUCH APPROPRIATION SHALL REVERT TO THE GENERAL
FUND. ANY SAVINGS FROM THE SPECIAL FUND CREATED HEREIN
SHALL ACCRUE TO THIS SPECIAL FUND."

Sec. 4, The succeeding sections of the same Act are hereby renumbered
accordingly.

See. 5. Implementing Rules and Regulations.- The Department of Budget
and Management, in coordination with the Bureau of Treasury and the DOTr, shall
within sixty (60) days from the effectivity of this Act, promulgate the rules and
regulations to effectively implement the provisions of this Act.

Sec. 6. Separability Clause. - If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provisions not affected thereby

shall remain in force and effect.

Sec. 7. Repealing Clause. - Any law, presidential decree or issuance, executive
order, letter of instruction, rule or regulation inconsistent with the provisions of this
Act is hereby repealed or modified accordingly.

Sec. 8. Effectivity. — This Act shall take effect after fifteen (15) days following
its complete publication in the Official Gazette or in at least two (2) newspapers of

general circulation.

Approved,