Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT  
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND 
AMENDING FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 
8794, AS AMENDED 
EXPLANATORY NOTE 
The traffic congestion in the country particularly in Metro Manila has 
long been a problem for the government and the commuting public. In a 
study on Urban Mobility Index in 2022, Metro Manila ranked 58th of the 60 
cities on “urban mobility readiness”, making it among the cities worldwide 
with the worst public transit system.1  
The opportunity cost of the traffic problem in Metro Manila, measured 
by wasted time, fuel, and lost productivity is estimated at P3.5 billion a day 
in 2017 and is projected to increase to as much as P5.4 billion daily by 2035.2 
Transport advocates and urban planners have long suggested that a 
probable solution to this daunting concern of traffic congestion is the 
development of an effective mass transit system. An effective public transport 
system can aid the commuting public for faster mobility while promoting the 
environment and decongesting traffic caused by an insurmountable trail of 
private vehicles. 
1 Philippine Star Global.2022 “Metro Manila Public Transportation Among the Worst in the 
World” Accessed on February 6, 2023: 
https://www.philstar.com/headlines/2022/11/25/2226400/metro-manila-public-
transportation-among-worst-world-study 
2 Japan International Cooperation Agency (JICA) Philippines.2018. “Partners in Nation 
Buidling: Annual Report 2018.” 
February 14, 2023
3:55 pm
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This bill seeks to amend the Motor Vehicle User’s Charge (MVUC) Act by 
realigning funds from the MVUC for the construction, improvement, and 
rehabilitation of our mass transit system. The development and expansion 
of our mass transport systems would not only ease the traffic problem but 
would benefit the lives and productivity of the commuting public and result 
in a cleaner environment. 
 
In view of the foregoing, approval of this bill is urgently sought. 
 
 
 
 
 
 
 
 
 
 
REP. PM VARGAS   
 
Fifth District, Quezon City 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT  
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND 
AMENDING FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 
8794, AS AMENDED 
Be it enacted by the Senate and 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 Act” 
SECTION 2. Disposition of Monies Collected. – Section 7 of R.A. No. 8794, 
as amended is hereby further amended to reads as follows: 
“Sec. 7. Disposition of Monies Collected. – All monies collected under 
this Act shall be [remitted to the National Treasury under a special account 
in the General Fund to be] earmarked solely AND USED EXCLUSIVELY for 
the construction, [upgrading, repair] IMPROVEMENT, and rehabilitation of 
[roads, bridges, and 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 SUCH 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). 
SECTION 3. A new Section is hereby inserted after Section 7 of the same Act 
to read as follows: 
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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 WHILE ANY SAVINGS FROM 
THE SPECIAL FUND CREATED HEREIN SHALL ACCRUE TO THIS 
SPECIAL FUND”. 
 
SECTION 4. The succeeding sections of the same Act are hereby renumbered 
accordingly.  
 
SECTION 5. Implementing Rules and Regulation. The Department of 
Budget and Management, in coordination with the Bureau of the 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.  
 
SECTION 18. Separability Clause. – If any portion or provision of this Act 
is declared invalid or unconstitutional, other provisions hereof shall remain 
in full force and effect.   
 
SECTION 19. Repealing Clause. All laws, decrees, executive orders, rules 
and regulations, which are inconsistent with this Act are hereby repealed, or 
modified accordingly.  
 
SECTION 20. Effectivity. – This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in a national newspaper of general 
circulation.  
 
Approved,