REPUBLIC OF THE PHILIPPINES.
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. __ 8326

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

EXPLANATORY NOTE

The Motor Vehicles User's Charge (MVUC) or commonly known as road tax, was
introduced to provide an adequate source of funding for the rehabilitation of roads in
the country through a separate charge system. Among others, it includes road
maintenance, improvement of road drainages, pollution control, road safety and road
education. Since its passage in June 2000, it has imposed road user's tax on all types
of vehicles whether for private or government use.

According to the 2019 Budget of Expenditure and Sources of Financing, the MVUC
balance, as of 2017, was at P28.13 billion, while its 2019 revenue was at 12.883
billion. The significant increase in road tax collections was due to the increase in the
number of vehicles on the road in recent years, However, the increased number of

vehicles has also worsened the traffic crisis in the country. In Metro Manila alone, data
have shown that Filipinos lost 10 days and 17 hours for driving during rush hour over

* Department of Budget and Management. Earmarked Revenues 2017-2019, Information retrieved from https://mwa.dbm.gov.ph/wp-
content/uploads/BESF /BESF2019/B15.pdf


the year. Moreover, the country loses P3.5 billion daily due to traffic congestion that
could reach up to P5.4 billion by 2035.2

This bill seeks to amend Republic Act No, 8794, otherwise known as the Motor Vehicle
User's Charge (MVUC) Act, as amended by Republic Act No. 11239, to reallocate the
funds from the road tax collection for the construction, improvement, and
rehabilitation of the mass transit system to alleviate the traffic problem in our country.
This measure intends to provide the maximum possible funding to the effort of
providing a more efficient public transit system in the country.

In view of the foregoing, the immediate approval of this measure is earnestly sought.

MANUEL DG./CABOCHAN III
Representative
Magdalo Para Sa Pilipino Party-List

2 CNN Philippines. PH loses P3.5B a day due to Metro Manila trafic ~JICA, Information retrieved from
bttps:/fennphilippines.com/transportation/2018/02/23/3ICA-P3,5-bilon-trafic.html, Dated Februrary 23, 2018


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

8326
House Bill No.

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND
AMENDING FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS
AMENDED BY REPUBLIC ACT NO. 11239

Be it enacted by the Senate and the 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 Fund Act”.

Sec. 2. Section 7 of Republic Act No. 8794, as amended by Republic Act No.
11239, is hereby further amended to read as follows:

“Sec. 7. Disposition of Monies Collected. All monies collected under this Act
shall be [remitted-to-the-National_Treasury-under-e-speeial_account-in-the
Generat-Fund-te-be] earmarked solely AND USED EXCLUSIVELY for the
construction, [upgrading—repait;] IMPROVEMENT, and rehabilitation of
[reads,—bridges—and—road—drainage] OUR MASS TRANSIT SYSTEM,



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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).”

Sec. 3. A new Section 8 is hereby inserted after Section 7 of the Same Act to
read as follows:

“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. ANY
SAVINGS FROM THE SPECIAL FUND CREATED HEREIN SHALL ACCRUE
TO THIS SPECIAL FUND.”

Sec. 4. The succeeding sections of the Same Act are hereby renumbered
accordingly.

Sec. 5. Implementing Rules and Regulations. The Department of Budget and
Management, in coordination with the Bureau of 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.


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Sec. 6. Separability Clause.— If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provisions not affected thereby shall
remain in force and effect.

Sec. 7. Repealing Clause. Any law, presidential decree or issuance, executive
order, letter of instruction, rule or regulation inconsistent with the provisions of this
Act is hereby repealed or modified accordingly.

Sec. 8. Effectivity Cause— This Act shall take effect after fifteen (15) days
following its complete publication in the Officia/ Gazette or any newspaper of general

circulation.

Approved,