FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SENATE 
S. BILL NO. 25 ~lS 
Introduced by Senator Ralph G. Recto 
EXPLANATORY NOTE 
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83.25 Million (90%) of our 92.5 Million population constitute the riding public. On the other 
hand, the total number of motor vehicles registered with the Land Transportation Office (LTO) in 2009 
reached 6.22 Million, of which 931,048 (14.97%) are public utility vehicles. 
Apart from the operators of public utility vehicles, millions of commuters are the most affected 
by road taxes and increases in toll fees as they jack up the costs of transport fares and consequently the 
prices of basic commodities. 
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Our nation's transport system relies' heavily on the road network which handles approximately 
90% of passenger movement and 50% of freight movement, serving priority production areas and 
population centers. 
Since the passage ofRA No. 8794, also known as "Motor Vehicle User's Charge (MVUC) Act" 
in June 2000, the road user's tax has been imposed on owners of all types of vehicles, whether for hire, 
for private or government use. Based on DBM reports, the total collections from MVUC as of June 2010 
amount to P65.562 Billion. 
. 
In order to balance the interests of stakeholders, this bill seeks to amend RA No. 8794, by 
exempting public utility vehicles and electric vehicles from the MVUC and reallocating the disposition of 
monies collected to the construction, improvement and rehabilitation of our mass transit system. 
The approval of this bill will address the need to provide efficient and effective mass transit 
system in our country and promote the use of electric vehicles which are expected to significantly reduce 
pollution emissions and dependence on fossil fuels such as petroleum and natural gas. Expansion and 
improvement of mass transit has been proven to be cost-effective in developed countries since it 
addresses concerns on traffic and parking congestion, travel time, costs of roadway and parking facility 
expansion, safety and traffic accidents, road wear, health and environment, long-term vehicle costs to 
consumers, excessive energy consumption and limited mobility for non-drivers. 
With the foregoing considered, the approval of this bill is hereby requested. 
o 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. B~LL NO. 2536 
,.) 
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) 
) 
Introduced by Senator Ralph G. Recto 
. ANACT 
EXEMPTING PUBLIC UTILITY VEHICLES AND ELECTRIC VEHICLES FROM 
THE 
MOTOR 
VEHICLE 
USER'S 
CHARGE 
AND 
REALLOCATING 
THE 
DISPOSITION OF MONIES COLLECTED AMENDING FOR THE PURPOSE 
SECTIONS 2, 3 AND 7 OF REPUBLIC ACT NO. 8794, OTHERWISE KNOWN AS THE 
"MOTOR VEHICLE USER'S CHARGE OF 2000" AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representative of the Philippines in 
Congress assembled: 
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SECTION 1. Title. This act shall be known as the "Mass Transit System Act of2010". 
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SEC. 2. Section 2 of Republic Act No. 8794, otherwise known as the "Motor Vehicle 
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User's Charge Act of2000," is hereby amended to read as follows: 
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"SEC. 2. Coverage. - In lieu of the registration fee under section 8 Republic Act 
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No. 4136, as amended by Batas Pambansa Bilang 74, and the Private Motor Vehicle Tax 
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under Executive Order No. 43, series of 1986, there is hereby imposed on every motor 
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vehicle!, whether for hire or] for private use, including government motor vehicles, as 
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more fully provided in Section 3 hereof, a Motor Vehicle User's Charge (MVUC) which 
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shall be collected from and paid by the owner of the motor vehicle." 
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SEC. 3. Section 3 of RA 8794 is hereby amended to read as follows: 
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"SEC 3. Rates of the Motor Vehicle User's Charge.- (a) For private passenger 
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cars registered as of the date of the effectivity of this Act, the MVUC to be paid shall be 
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the private motor vehicle tax under Executive Order No. 43, series of 1986, plus twenty-
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five percent (25%) for the first year, fifty percent (50%) for the second year, seventy-five 
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percent (75%) for the third year, and one hundred percent (100%) for the fourth year and 
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thereafter: Provided, however, That private passenger cars to be registered for the first 
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time after the effectivity of this Act, shall be subject to the MVUC rates prescribed in 
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section 3(b) hereof. 
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(b) Except as provided under 3 (a) hereof, for each motor vehicle under each of the 
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categories as herein provided, the MVUC shall be collected from and paid by the vehicle 
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owner, at the following base rates plus twenty-five percent (25%) in the first year from 
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the effectivity of this Act; the said base rates plus fifty percent (50%) in the second year 
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from the effectivity of this Act; the said base rates plus seventy-five percent (75%) in the 
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third year from the effectivity of this Act; and said base rates plus one hundred percent 
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(100%) in the fourth year from the effectivity ofthis Act and therafter: Provided, That the 
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MVUC for the sports utility vehicles shall be fifteen percent (15%) higher than the 
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MVUC herein set for private utility vehicles: Provided, further, That ALL PUBLIC 
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UTILITY VEHICLES AND ELECTRIC VEHICLES, WHETHER PRIVATE, 
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GOVERNMENT, OR FOR 'HIRE SHALL BE EXEMPTED FROM THE 
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PAYMENT OF THE MVUC ,1motorcycles for hire with sidecars shall not pay more 
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than three-hundred pesos (300.00) J. 
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Type of Vehicle 
[I.) 
Private and Government 
A. Passenger Cars 
(1) GVW up to 1,600 kgs. 
(2) GVW more than 1,600 kgs. - 2300 kgs. 
(3) GVW more than 2,300 kgs. 
B. Utility Vehicles 
GVW up to 2,700 kgs. 
GVW more than 2,700 kgs. - 4,500 kgs. 
C. Motorcycles 
Without sidecar 
With side car 
D. Buses 
GVW more than 4,500 kgs. 
E. Trucks 
GVW more than 4,500 kgs 
2 
Base Rates 
P 
P 
P 
P 
P 
800 
1,800 
4,000 
1,000 
1,000 +P20 per 100 kgs. of 
kgs. of GVW over 2,700 kgs. 
120 
150 
900 + PI2 Per 100 kgs. of 
GVW over 2,700 kgs. 
900 + PI2 Per 100 kgs. of 
GVW over 2,700 kgs. 


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F. Trailers 
GVW more than 4,500 kgs. 
[II. For Hire 
A. Passenger Cars 
(1) GVW Up to 1,600 kgs. 
(2) GVW more than 1,600 kgs. - 2,300 kgs. 
(3) GVW more than 2,300 kgs. 
B. Utility Vehicles 
GVW up to 4,500 kgs. 
C. Motorcycles 
Without sidecar 
With side car 
D. Buses 
GVW more than 4,500 kgs. 
E. Trucks 
GVW more than 4,500 kgs 
F. Trailers 
GVW more than 4,500 kgs. 
P 
12 per 100 Kgs. ofGVW 
P 
450 
900 
2,500 
P 
15 per 100 Kgs. ofGVW 
P 
150 
240 
P 
15 per 100 Kgs. ofGVW 
P 
900+P12 per 100 kgs. of 
GVW over 2,700 kgs. 
P 
12 per 100 Kgs. of GVW) 
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After the fourth year from the effectivity of this Act, the President of the 
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Philippines may adjust the rates contained in Section 3 which shall be reflected but shall 
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not exceed the annual rates of the Consumer Price Index (CPI). The President may adjust 
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such rates not more than once every five (5) years." 
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SEC. 4. Section 7 of RA 8794 is hereby amended to read as follows: 
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"SEC. 7. Disposition of Monies Collected. - All monies collected under this Act 
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shall be earmarked solely and ,used exclusively [(1)) for [road maintenance and the 
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improvement of road drainage, (2) for the installation of adequate and efficient traffic 
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lights 
and 
road 
safety devices, 
and 
(3) 
for 
air 
pollution 
contro1.) 
THE 
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CONSTRUCTION/ IMPROVEMENT/ REHABILITATION OF OUR MASS 
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TRANSIT SYSTEM, INCLUDING THE ACQUISITION OF ROAD RIGHT-OF-
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WAY FOR SUCH PROJECTS. 
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All such monies collected shall be deposited in [four (4)] A special trust 
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account[s] in the National Treasury, TO BE KNOWN AS THE MASS TRANSIT 
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SYSTEM [namely: (I) Special Road] Support Fund. [; (2) Special Local Road Fund; (3) 
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Special Road Safety Fund; and (4) Special Vehicle Pollution Control Fund. The 
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distribution of collections under this Act shall be as follows: 
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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-halfpergent (7.5%) shall be allotted to and placed in the Special 
Road Safety Fund; and 
4. Seven and one-half percent (7.5%) shall be allotted to and placed in the Special 
Vehicle Pollution Control Fund.] 
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The [Special Road] MASS TRANSIT SYSTEM Support Fund [, the Special 
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Local Road Fund and the Special Road Safety Fund] shall be under the [DPWH, whereas 
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the Special Vehicle Pollution Control Fund shall be under the] DEPARTMENT OF 
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TRANSPORTATION AND COMMUNICATIONS (DOTC). 
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[Seventy percent (70%) of the Special Road Support Fund shall be used for the 
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maintenance of, and the improvement of drainage of national primary roads. The 
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remaining thirty percent (30%) thereof shall be allocated and used for the maintenance, 
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and improvement of drainage of national secondary roads throughout the country.) 
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[The cost of installation of adequate and efficient traffic lights and road safety 
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devices throughout the country, where such traffic lights and safety devices are needed, 
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shall be taken from the Special Road Safety Fund.) 
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A [Road] MASS TRANSIT SYSTEM Board to implement the prudent and 
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efficient management and utilization of the special fund[s) shall be organized by the 
. 
, 
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President of the Philippines. The [Road) MASS TRANSIT SYSTEM Board shall be 
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composed of seven (7) members; with the secretary of the [DPWH) DOTC as ex officio 
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head, and the secretaries of the Department of PUBLIC WORKS AND HIGHWAYS, 
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Finance, AND Budget and Management, [and the Transportation and Communication,) 
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as ex officio members. The remaining three (3) members shall come from transport, [and] 
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motorist AND COMMUTERS organizations, which have been in existence and active 
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for the last five (5) years prior to this Act. They shall be appointed for the term oftwo (2) 
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years each by the President of the Philippines upon the recommendation of the secretaries 
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of the DOTC AND DPWH [and the DOTC]." 
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SEC. 4. Section 8 ofRA 8794 is hereby amended to read as follows: 
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"SEC. 8. The [four (4)] special fund[s] established under this Act shall be distinct 
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and separate from and in additio.n to any appropriation authorized and granted yearly to 
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the [DPWH and the] DOTC to cover expenditures for the identified objects of 
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expenditures under this Act. Cqngress shall continue to appropriate an amount in the 
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General Appropriations Act for [road maintenance of the DPWH] EXPANSION, 
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CONSTRUCTION, IMPROV~MENT AND REHABILITATION OF THE MASS 
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TRANSIT SYSTEM OF THE DOTC: Provided, however, That any savings for each 
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year out of such appropriation shall revert to the General Fund. Any savings from the 
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special fund[s] created herein shall accrue to the[se respective] special fund[s]." 
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SEC. 5. Implementing Rules an4 Regulations. Section 9 of RA 8794 is hereby further 
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amended to read as follows: 
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SEC. 9. Implementing Rules and Regulations.-The secretar[ies]Y of the [DPWH 
, 
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and the] DOTC shall Uointly] within thirty (30) days from the effectivity of this Act, 
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promulgate the rules and regulation to implement and carry out the intent, objectives, 
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purposes and provisions of ~his Act, including such structural and procedural 
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improvement in the systems and agenc[ies]Y concerned as may be necessary to ensure 
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the prudent, wise, effective and efficient utilization of the special fund[s] established 
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under this Act: [Provided, That the secretary of the DPWH shall prepare the portion of 
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their implementing rules and regulations pertaining to the Special Road Support Fund, 
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the Special Local Road Fund, and the Special Road Safety Fund, and the Secretary of the 
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DOTC shall prepare the portion of the implementing rules and regulation pertaining to 
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the collection of the MVUC stated under Section 3 of this Act and on the disposition of 
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the monies accruing to the Special Vehicle Pollution Control Fund.] 
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SEC. 6. Seperability Clause. If'any provision of this Act is declared unconstitutional or 
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invalid, other parts or provision hereof not affected thereby shall continue to be in full force and 
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effect. 
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SEC. 7. Repealing Clause. All other laws, orders, decrees, issuances, circulars, rules and 
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regulations or parts thereof which are inconsistent with any of the provisions of this Act are 
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hereby repealed or modified accordingly: 
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SEC. 8. F,fJectivity Clause. This Act shall take effect fifteen days (15) days following its 
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publication in at least two (2) newspapers of general circulation or the Official Gazette. 
Approved, 
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