Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

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SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 733 4

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INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

Statistics show that more than Six Hundred Thousand (600,000) dicsel-fuelled,
jeepneys, buses, trucks and other vehicles in our urban areas are responsible for about
80% of the total black carbon emissions in our country. ‘The economic cost of health
impacts of air pollution from road transport is estimated at 88% of the total Motor
Vehicle's User’s Charge (MVUC) collections.

In the Global Climate Risk Index, of 2018, the Philippines ranked fifth with
respect to countries most affected by extreme weather events. The well-known advance
effects of pollution and climate change call for the promotion of green vehicles to
achieve a healthy environment.

It is with vital importance to amend Republic Act 8794, otherwise known as the
“Motor Vehicle User’s Charge Act of 2000,” by exempting green vehicles from the
MVUC in order to encourage motorists to shift to clean energy sources of fuel.
Promoting green vehicles will help the Philippines in its effort to reduce carbon dioxide
emissions, interest fuel savings and improve health conditions.

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

FRHD VARGAS

? RECEIVED


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7334

House Bill No._£'

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

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”

‘Beit enacted by the Senate and the House of Representatives ofthe 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:

Sec 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.”

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

“Sec 3. Rates of the Motor Vehicle User's Charge. —

“a)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 (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 (P300.00).


‘Type of Vehicle

xxx
IL. For Hire
A. Passenger Cars

1) GVW Up to 1,600 kes.
2) GVW more than

1,600kgs. - 2,000kgs
3) GVW more than 2,300kgs

B. Utility Vehicles
GVW up to 4,500kgs,

C. Motorcycles
Without sidecar
With side car

D. Buses
GVW more than 4,500kgs

E. Trucks
GVW more than 4,500kgs

F. Trailers
GVW more than 4,500 kgs

P

450.00

900.00
2,500.00

15.00 per
100kgs of GVW

150.00
240.00

15.00 per
100kgs of GVW

900.00
(Note: Additional P12.00
Per 100kgs of GVW

Over 2,700kgs)

12.00 per 100 kgs of GVW

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

SECTION 3. Implementing Rules and Regulations (IRR). 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.

SECTION 4. Repealing Clause. All laws, rules and regulations or parts thereof inconsistent
with the provisions of this Act are hereby repealed or modify accordingly.


SECTION 5. Separability Clause. If any part, section or provision of this Act shall be held
invalid or unconstitutional, no other part, section or provisions thereof shall be affected thereby.

SECTION 6. Effectivity. ‘This Act shall take effect fifteen (15) days following the completion
of its publication in the Official Gazette or two (2) newspapers of general circulation.

Approved