REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

FIFT fH CONGRESS
FIRST REGULAR SESSION

HB.no_ 2622

INTRODUCED BY HONORABLES AL FRANCIS C. BICHARA, RODEL M
BATOCABE, ALFREDO A. GARBIN, JR.

EXPLANATORY NOTE

The Motor Vehicle User’s Charge (MVUC), otherwise known as the Road User's
Tax, is the third largest source of tax revenue in the Philippines. MVUC collections have
reached approximately about PhP60,500,000,000 from its first year of implementation in
2001 until 2010. By virtue of R.A. 8794, the MVUC is an earmarked collection, and as
such, only two departments of the Government—the DOTC and the DPWH control such
fund. Moreover, the MVUC collection is not part of the DPWH and DOTC regular
budget under the General Appropriations Act (GAA). It is explicitly provided for under
R.A. 8794 that the MVUC fund is distinct and separate from and in addition to any
appropriation which may be provided under the GAA.

‘Through the provisions of R.A. 8794, the Congress is deprived of the power to
control and allocate the revenues collected through the MVUC. Under the present law,
there is no need for MVUC Fund allocation to pass budget deliberations unlike all
widespread misallocation of said fund, it is our imperative duty to ensure that the MVUC
fund is properly safeguarded and accounted for.

This bill seeks to amend the provisions of R.A. 8794, in order to give Congress
the power to review and scrutinize the allocation of the MVUC fund, More importantly,
we have an obligation to guarantee that the public funds are spent according to the will
and the needs of the Filipino people.

In vie foregoing considerations, approval of this bill is requested.

Aciara RODEL M. BATOCABE
tative, AKO BICOL Partylist

AL FRA’
Represe

1S
ive, 2™ District Albay Reprds

OA
Representative, A


FI TH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES)
FIRST REGULAR SESSION.)

AL FRANCIS C. BICHARA RODEL M. BATOCABE,
REDO A. GARBIN, JR.

Introduced by HONORABLES
ALI

AN ACT AMENDING SECTIONS 7 AND 8 OF 8794, OTHERWISE,
KNOWN AS AN ACT IMPOSING A MOTOR VEHICLE’S USER’S CHARGE
ON OWNERS OF ALL TYPES OF MOTOR VEHICLES, PROVIDING FOR THE
AUTOMATIC ACCRUAL OF DS COLLECTED TO THE NATIONAL

TREASURY, AND FOR OTHER PURPOSES

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

Section 1. Section 7 of R.A. 8794 is hereby amended to read as follows:

SEC. 7. Dixposition of Monies Collected. AW monies collected under this Act
shall automatically accrue to the National Treasury and shall be available for the
general purposes of the Goverament,

In the distribution of said funds, it shall be mandatory for Congress to
allocate funds for the following purpos

a) For the improvement and maintenance of national and local roads and
road drainage;

b). For the
devices;

tallation of adequate and efficient traffic lights and road safety

¢) For air pollution control.

Such allocation shall be included in the annual budget of the Department of
Public Works and Highways (DPWH) and the Department of Transportation and
Cominunications (DOTC), as the case may be, which shall be included in the annual
General Appropriations Act.”

Section 2. Section 8 of R.A. 8794 is deleted

Section 3. All Boards, Bodies and Agencies created pursuant to R.A. 8794 are
hereby abolished, and all powers and functions exercised by said board, body and/or
agency are hereby transferred to the DPWH and DOTC, as the case may be.

Section 4. Rules and Regulations.—Vhe secretaries of the DPWH and the DOT
shall jointly promulgate the necessary rules and regulations for the effective
implementation if this Act.



Section 5. Repealing Clause.—All laws, decrees, executive orders. rules and
regulations and other issuances or parts thereof which are inconsistent with this Act are
hereby repealed or modified accordingly.

Section 6. Effectivity:—This Act shall take effect upon its approval

Approved.