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FIFTEENTH CONGRESS OF THE REPUBLIC} 
OF THE PHILIPPINES 
} 
First Regular Session 
} 
SENATE 
S. No. 2416 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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Republic Act No. 8794, otherwise known as the Motor Vehicle User's 
Charge was enacted primarily to provide additional revenue to the national 
government for the maintenance of national and provincial roads. 
The road 
user's tax is the third largest source of tax revenue, after the Bureau of Internal 
Revenue and the Bureau of Customs. From 2001 to 2009, road user's tax 
collections amounted to some P60.5 Billion. 
R.A. 8794 provides that the funds collected shall be earmarked solely and 
used exclusively (1) for road maintenance and the improvement of road drainage, 
(2) for the installation of adequate and efficient traffic lights and road safety 
devices, and (3) for air pollution control. It 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. 
Said law covers all types of motor vehicles such as passenger cars, utility 
vehicles, motorcycles, buses, trucks and trailers. 
This bill seeks to amend the said law by exempting motorcycles with 
sidecar ("tricycle") from the coverage of the road user's tax to lessen the financial 
burden of tricycle drivers and help uplift their living condition. Tricycle drivers 
earn an average of P150 to P200 daily which is not adequate to sustain the 
family's basic needs and such fees are additional burden to them. Further, they 
have reduced incomes because of the regular increases in oil prices. It is also 
important to note that most tricycle drivers ply only on secondary roads or side 
streets thus they are not considered as direct beneficiaries of the road user's tax. 
In view of the foregoing, immediate passage of this bill is earnestly sought. 
, 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC} 
OF THE PHILIPPINES 
} 
First Regular Session 
} 
SENATE 
S. No. 2416 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
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AMENDING SECTIONS 2 AND 3 (B) OF REPUBLIC ACT NO. 8794, 
OTHERWISE KNOWN AS "AN ACT 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 the House of Representatives of the Philippines 
in Congress assembled: 
, 
SECTION 1. Section 2 of Republic Act No. 8794, otherwise known as "An 
Act imposing a motor vehicle user's charge on owners of all types of motor 
vehicles and for other purposes" is hereby amended to read 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 imposed on every motor vehicle, whether for hire or 
for private use, including government motor vehicles as more fully 
provided in section 3 hereof, a Motor Vehicle User's Charge (MVUC) 
which shall be collected from and paid by the owner of the motor vehicle, 
EXCEPT MOTORCYCLES FOR HIRE WITH SIDECAR USED AS A 
MEANS OF LIVELIHOOD. 
SEC. 2. Section 3 (b) of RA No. 8794 is hereby amended to read as 
follows: 
b)Except as provided under Section 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 the said base 
rates plus one hundred percent (100%) in the fourth year from the 
effectivity of this Act and thereafter: Provided, That the MVUC for 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).] 


Type of Vehicle 
I.Private and Government 
A Passenger Cars 
(1)GVW up to 1,600 kgs. 
Base Rates 
P800 
(2)GVW more than 1,600 kgs.-2,300 kgs. 1,800 
(3)GVW more than 2,300 kgs. 
4,000 
B.Utility Vehicles 
GVW up to 2,700 kgs. 
GVW more than 2,700 kgs.-4,500 kgs. 
per 100 kgs. of 
GVWover 
2,700 kgs. 
C.Motorcycies 
without sidecar 
[with sidecar 
D.Buses 
GVW more than 4,500 kgs. 
kgs. of GVW over 
2,700 kgs. 
E.Trucks 
GVW more than 4,500 kgs. 
kgs. of GVW over 
2,700 kgs. 
F.Trailers 
GVW more than 4,500 kgs 
GVW 
II.For Hire 
APassenger Cars 
(1 )GVW up to 1,600 kgs. 
P1,000 
P1,000 + P20 
P120 
1501 
P900 + P12 per 100 
P900 + P12 per 100 
P12 per 100 kgs. of 
P450 
(2)GVW more than 1,600 kgs.-2,300 kgs. 900 
(3)GVW more than 2,300 kgs 
2,500 


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B.Utility Vehicles 
GVW up to 4,500 kgs. P 15 per 100 kgs. of 
GVW 
C.Motorcycles 
without sidecar 
[with sidecar 
D.Buses 
GVW more than 4,500 kgs. 
E.Trucks 
GVW more than 4,500 kgs. 
of GVW over 2,700 kgs. 
F.Trailers 
GVW more than 4,500 kgs. 
P150 
240] 
P15 per 100 kgs. of GVW 
P900 + P12 per 100 kgs. 
P12 per 100 kgs. of GVW 
SEC. 2. Separability Clause - If any provIsion or part hereof is held 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 
SEC. 3 Repealing Clause - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation 
contrary to or inconsistent with the provision of this act is hereby repealed, 
modified or amended accordingly. 
SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days 
from the date of its complete publication in the Official Gazette or in at least two 
(2) newspapers of general circulation. 
Approved,