SEVENTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

HOUSE OF REPRESENTATIVES
H.No.__2600

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT
EXEMPTING PUBLIC UTILITY VEHICLES FROM THE MOTOR VEHICLES
USER’S CHARGE AMENDING FOR THE PURPOSE SECTIONS 2 AND 3 OF
REPUBLIC ACT NO. 8794, OTHERWISE KNOWN AS THE “MOTOR VEHICLE
USER’S CHARGE ACT OF 2000”

Explanatory Note

Commuters constitute 90% or 90.88 million’ of our population. On the other hand, the
total number of public utility vehicles (PUVs) registered with the Land Transportation Office
(LTO) in 2014is only912.584or 11.29%? of the 8.08 million motor vehicles registered.
Registered PUVs are greatly outnumbered by the other types of vehicles particularly by cars and
motorcycles. Clearly, there is a need to increase the number of PUVs in order to cater to the
increasing number of commuters.

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.

High operating costs incurred by public transport owners which are due primarily to oil
price hikes, road taxes, and increase in toll fees create a variety of problems to the riding public
such as insufficientnumber of PUVs, inadequate mobility for commuters andhigher transport
fares to name a few.

These problems call for the revitalization of public transport, hence, this bill. This
measure seeks to amend the Motor Vehicle User’s Charge (MVUC) Act in order to provide relief
to transport groups reeling from escalating oil prices and toll fees by exempting them from the
Mvuc.

Exempting public transport from paying road taxes will provide relief to PUV operators
by lowering their operating costs, and to the millions of our riding public who bear the brunt of
transport cost hikes. These in turn will lead to the expected shift of motorists to public
transportation, and easing of traffic congestion and reducing traffic injuries-a :

With the foregoing considered, the approval of this bill jy

VILMA SANTOS-RECTO

'Philippine Statistics Authority — National Capital Region, “NCR in Figures”, hitp://www.nso-ner.ph/ (accessed 6

June 2016)



Cavan enune

SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES)
First Regular Session 5

HOUSE OF REPRESENTATIVES
H. No. 2600

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT
EXEMPTING PUBLIC UTILITY VEHICLES FROM THE MOTOR VEHICLES
USER’S CHARGE AMENDING FOR THE PURPOSE SECTIONS 2 AND 30F
REPUBLIC ACT NO, 8794, OTHERWISE KNOWN AS THE “MOTOR VEHICLE
USER’S CHARGEACT OF 2000”

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

SECTION 1. Section 2 of Republic Act (R.A.) No. 8794, otherwise known as the
“Motor Vehicle User's Charge Act of 2000,” is hereby amended to read as follows:

2.Coverage.- In lieu of the registration fee under Section 8 of 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.”

SEC. 2. Section 3 of R.A. No. 8794 is hereby further amended to read as follows:

EC 3.Rates of the Motor Vehicle User's Charge.-

“(@) xxx

“(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 thereafter:
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).]
Type of Vehicle Base Rates

“Sex.
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[IL For Hire

A. Passenger Cars

(1) GVW Up to 1,600 kgs. P 450
(2) GVW more than 1,600 kgs. ~ 2,300 kgs. 900
(3) GVW more than 2,300 kgs. 2,500
B. Utility Vehicles
GVW up to 4,500 kgs. P 15 per 100 kgs. of GVW
C. Motoreycles
Without sidecar P 150
With side car 240
D. Buses
GVW more than 4,500 kgs. P 15 per 100 kgs. of GVW
E. Trucks
GVW more than 4,500 kgs. P — 900+P12 per 100 kgs. of
GVW over 2,700 kgs.
F. Trailers
GVW more than 4,500 kgs. P 12 per 100 kgs. of GVW]

“After the fourth year from the effectivity of this Act, the President of the

Philippines may adjust the rates contained in Section 3 which shall be reflected but shall

not exceed the annual rates of the Consumer Price Index (CPI). The President may adjust

such rates not more than once every five (5) years.”

SEC. 3. Implementing Rules and Regulations. The Secretary of the Department of
Transportation and Communication shall provide the necessary implementing rules and
regulations within ninety (90) days from the effectivity of this Act.

SEC. 4.Repealing Clause. All other laws, orders, decrees, issuances, circulars, rules and
regulations or parts thereof which are inconsistent with any of the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 5. Effectivity Clause, This Act shall take effect fifteen (15) days from the date of
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

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