TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE
S. No. 10
25 JUL-2 P4 -13
RHC;' V
INTRODUCED BY SENATOR JV EJERCITO
AN ACT
ALLOWING AND REGULATING THE USE OF MOTORCYCLES AS PUBLIC 
UTILITY VEHICLES, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Progress in in the Philippines can be compared to its roads' traffic situation— 
slow. Immeasurable time, money and resources are wasted because our people spend 
significant time on the road lessening their productivity. A lot of occasions and 
opportunities passed by and slipped away due to our inefficient modes of transport.
The lack of mass transportation has pushed our people to become more 
innovative and creative In finding an alternative for a speedy form of road travel. 
Similar to the habal-habal in the provinces, ferrying passengers for a fare gained 
popularity in urban centers. It has made commuting easier and relatively faster than 
other modes of transportation.
Not long after, ride-hailing mobile phone applications were born and quickly 
made Its way not only in our transport system but in the lives of many Filipinos. 
Motorcycles that used to deliver food and documents would later on offer their services 
of transporting people from one point to another.
This bill seeks to legalize a long-accepted form of transportation patronized by 
our countrymen. Such will guarantee the protection of passengers through 
government regulation. Vehicle roadworthiness and trainings shall be taken into 
consideration to ensure the safety of both the commuter and riders.


Every person has the right to a fair chance to make a decent living whether he 
is an office employee or a motorcycle rider carrying a passenger to his chosen 
destination for a reasonable fee. May this piece of legislation grant legitimacy to a 
dignified line of work often overlooked. Let this bill be a testament of our commitment 
in crafting laws that gives equal opportunities to all Filipinos.
In view of the foregoing, the passage of this bill is earnestly sought.
JV EJERCITO


TWENTEITH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
F/rsf Regular Session
)
SENATE
S. No. 10
25 JUL-2 P4--13
Introduced by Senator JV Ejercito
AN ACT
ALLOWING AND REGULATING THE USE OF MOTORCYCLES AS PUBLIC 
UTILITY VEHICLES, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembied:
1 
Section 1. Short Tide. - This Act shall be known as the "Motorcycle-for-Hire Act."
2 
Sec. 2. Deciaration of Poiicy. - The State recognizes the importance of
3 
transportation in economic deveiopment. The recent innovations in technology have
4 
allowed the riding public access to alternative modes of pubiic conveyance such as
5 
motorcycles-for-hire, which have emerged as a reiiabie and accessible mode of
6 
transportation. However, despite its promise of convenience and fast service,
7 
motorcycles-for-hire must be regulated to ensure that the interest of the general public
8 
is protected. Thus, the State shall allow the regulated operation of motorcycles-for-
9 
hire to provide the public with an alternative mode of public transportation that is safe,
10 
secure, and economical. Towards this end, the State shail establish mechanisms and
11 
guidelines in regulating all operational aspects of motorcycles-for-hire.
12 
Sec. 3. Definition of Terms. - As used in this Act:
13 
(a) Biker refers to the driver of a motorcycle-for-hire;
14 
(b) Certificate of Pubiic Convenience or CPC refers to the authority issued by
15 
the Land Transportation Franchising and Reguiatory Board (LTFRB) to Motorcycle Taxi
16 
Operator (MTO) in order that they may authorize bikers to operate motorcycles-for-
17 
hire or to bikers to operate motorcycles-for-hire;


1 
(c) Customer or user refers to a natural person requesting for services of a
2 
motorcycle-for-hire on a digital platform or through other means;
3 
(d) Digital platform refers to an information and communications technology-
4 
enabled mechanism that connects and integrates providers and users in online
5 
environments where services are requested, developed, and sold and data is
6 
generated and exchanged;
7 
(e) Motorcycle refers to any two (2)-wheeled motor vehicle without
8 
appendages;
9 
(f) Motorcycle Taxi Operator or MTO refers to any natural or juridical person
10 
that makes available pre-arranged transportation services of motorcycles-for-hire,
11 
whether on a digital platform or through other means, and connects its customers or
12 
users with bikers to facilitate the creation a contract of carriage for compensation;
13 
(g) Motorcycle-for-hire refers to a motorcycle, duly registered as such under
14 
this Act, used in the provision of services offered to the public for the carriage of
15 
passengers on a for hire basis. A motorcycle-for-hire shall be considered a public utility
16 
vehicle and its operation a public utility;
17 
(h) Motorcycle-for-hire Operator's Permit or MOP refers to the authority issued
18 
to bikers by LGUs in order that they may operate a motorcycle-for-hire;
19 
(i) Multi-homing refers to an approach where a particular biker may be
20 
accredited by more than one MTO, allowing such biker to utilize the services of more
21 
than one MTO in the provision of transportation services; and
22 
(j) Passenger refers to a natural person being transported from point to point
23 
by a biker using a motorcycie-for-hire.
24 
Sec. 4. Scope and Application. - This Act shall apply to all aspects of the
25 
operation of motorcycles used as a common carrier for the transportation of
26 
passengers.
27 
Sec. 5. Recognition of Motorcydes-for-Hire as a Viable Mode of Public
28 
Transportation. - Motorcycles-for-hire shall be recognized as a viable mode of public
29 
transportation and, for this purpose, shall be included as a mode of transport in the
30 
Local Public Transport Route Plan (LPTRP) to be developed by LGUs and approved by
31 
the DOTr and LTFRB as well as in separate manuals or guidelines issued by LGUs on
32 
any public transportation plans concerning any province, city or municipality based on


1 
local mobility requirements.
2 
Motorcycles-for-hire shall also be included in all plans and programs for route
3 
rationalization and traffic management, both at the local and national level.
4 
Sec. 6. Motorcydes-For-Hire as Common Carriers. - The operation of
5 
motorcycles-for-hire is imbued with public interest. As such, the same shall be
6 
governed by the applicable provisions of Republic Act No. 386, otherwise known as
7 
the "Civil Code of the Philippines," and other pertinent laws, rules, and regulations on
8 
common carriers, particularly on the required degree of diligence to be observed by
9 
bikers in the course of transporting passengers and on the presumption of culpability
10 
in case of death or injuries to passengers.
11 
Sec. 7. Registration of Motorcydes-For-Hire. - A motorcycle intended to be used
12 
as a motorcycle-for-hire must be duly registered with the Land Transportation Office
13 
(LTO) in accordance with the requirements set forth in Section 11 of this Act. The LTO
14 
shall ensure the roadworthiness of all motorcycles-for-hire before their registration, or
15 
any renewal thereof.
16 
Sec. 8. Standards and Specifications of Motorcydes-For-Hire. -The DOTr, upon
17 
the recommendation of the LTO, shall prescribe standards and specifications of
18 
motorcycles that may be allowed to operate as motorcycles-for-hire, taking into
19 
consideration the safety of the passengers and bikers.
20 
No modifications shall be made on any motorcycles-for-hire except for the
21 
installation of the appropriate accessories, such as a step board, footrest, speed limiter
22 
or monitoring devices, in accordance with the standards and specifications to be
23 
prescribed by the DOTr.
24 
Sec. 9. Accreditation Requirements for MTOs. - An individual or juridical entity
25 
duly registered with the with the appropriate government agencies may be accredited
26 
by the LTFRB to operate as an MTO.
27 
MTOs must comply with the nationality requirements under applicable laws:
28 
Provided, That, where permitted, foreign nationals shall not be allowed to directly or
29 
Indirectly own more than forty percent (40%) of the capital of any MTOs unless the
30 
country of such foreign nationals accords reciprocity to Philippine nationals as may be
31 
provided by foreign law, treaty or international agreement.
32 
The accreditation shall be valid for five (5) years and may be renewed: Provided,


1 
That an MTO applying for renewal shall have maintained an average safety rating of
2 
at least ninety-five percent (95%) as certified by an independent auditor for the
3 
validity period of its previous accreditation.
4 
Sec. 10. Power to Regulate and Grant Permits to Operate Motorcydes-for-Hire.
5 
-The power to regulate and grant permits to operate motorcycies-for-hire shall be as
6 
follows:
7 
(a) Metropolitan and Highly Urbanized Areas. - In metropolitan and highly
8 
urbanized areas, the authority to regulate and grant permits for the operation of
9 
motorcycles-for-hire is vested in the LTFRB through the issuance of a CPC to an MTO
10 
or an individual biker that fulfills the requirements under Sections 11(a) and (b),
11 
respectively. The LTFRB shall set forth in the CPC the terms and conditions applicable
12 
to the operation of motorcycles-for-hire.
13 
A CPC granted to an MTO shall allow an MTO's authorized bikers to operate
14 
motorcycle-for-hire services nationwide while a CPC granted to an individual biker shall
15 
authorize such biker to operate a motorcycle-for-hire nationwide or within several
16 
service areas. An MTO's authorized bikers and an individual biker who has been
17 
granted a CPC with nationwide coverage may no longer apply for MOPs under Section
18 
9(b). All CPCs shall have a validity period of two (2) years and may be renewed
19 
consecutively for the same period.
20 
(b) Other Areas Apart from Metropolitan and Highly Urbanized Areas. - The
21 
authority to regulate and grant permits for the operation of motorcycles-for-hire in
22 
other areas that are not considered metropolitan or highly urbanized areas shall be
23 
vested in local government units (LGUs) through the issuance of an MOP to individual
24 
bikers that fuifill the requirements under Section 11(b). For routes within their
25 
jurisdictions, the MOP shall be issued by the city or municipality concerned. For routes
26 
traversing two (2) or more cities or municipalities, the MOP shali be issued by the
27 
province of the component LGUs. In cases where a route traverses two or more cities
28 
or municipalities belonging to two or more provinces, the MOP may be obtained from
29 
any of the provinces concerned: Provided, That the consent of the other province or
30 
provinces must be secured prior to the operation of the motorcycie-for-hire.
31 
An MOP is only valid for the operation of a motorcycle-for-hire within the
32 
designated route. An individual biker may be issued several MOPs covering different


1 
service areas.
2 
MOPs shall be valid for a period of two (2) years and may be renewed
3 
consecutively for the same period.
4 
Sec. 11. Requirements for the Grant of a CPC or MOP. - A CPC may be granted
5 
to an MTO or to an individual biker. An MOP may only be granted to an individual
6 
biker.
7 
(a) A CPC with nationwide coverage shall only be issued to an MTO upon
8 
submission of proof that the following requirements have been met:
9 
(i) minimum capital of at least Twenty Million Philippine Pesos
10 
(PHP20,000,000.00);
11 
(ii) capability to evaluate and determine the skills and competence of
12 
bikers through an established training center duly accredited by TESDA;
13 
(iii) a digital platform where the services of motorcycles-for-hire can be
14 
booked with a reporting feature through which users can report accidents or
15 
lodge complaints; and
16 
(iv) an established accident quick response system.
17 
An MTO may authorize individuals to operate motorcycles-for-hire under
18 
the MTO's CPC subject to their submission of the requirements set out in
19 
subsection (b) below: Provided, That a non-professional driver's license shall be
20 
sufficient for purposes of this authorization.
21 
(b) A CPC with several service areas or nationwide coverage or MOP shall only
22 
be issued to a biker upon submission of the following requirements:
23 
(i) proof of Filipino citizenship;
24 
(ii) 
valid professional driver's license for the operation of motorcycles;
25 
(iii) for areas with a existing MTO, proof of registration with an MTO and
26 
completion of the MTO's training course that covers, at the minimum, pillion-
27 
ferrying skills, traffic rules and regulations, and customer relations training and
28 
includes written and practical tests as components;
29 
(iv) for areas without an existing MTO, a certification issued by any
30 
TESDA-accredited institution confirming that the biker has undergone the
31 
necessary safety and skills training for the operation of a motorcycle-for-hire;


1 
(v) Certificate of Registration of the motorcycle-for-hire duly issued by
2 
the LTO;
3 
(vi) insurance coverage for the death of or injuries suffered by the biker,
4 
passenger or any third party or damage to property by reason or on occasion of
5 
the operation of a motorcycle-for-hire; and
6 
(vii) Taxpayer Identification Number issued by the BIR.
7 
Sec. 12. Fees for the Grant of a CPC and MOP. -The LTFRB or the issuing LGUs,
8 
as applicable, are authorized to charge and collect from any applicant CPC or MOP
9 
fees as reimbursement of its expenses in the authorization, supervision, and regulation
10 
of motorcycles-for-hire. Such fees shall be determined by the LTFRB, subject to the
11 
approval of the Department of Transportation (DOTr), or the issuing LGUs.
12 
Sec. 13. Conditions for the Maintenance of a CPC or MOP. - An MTO must
13 
maintain the requirements set out in subsections (ii) to (iv) of Section 11(a) for the
14 
duration of the validity of its CPC. A biker must maintain the requirements set out in
15 
Section 11(b) for the duration of the validity of their CPC or MOP.
16 
The LTO shall promulgate the necessary guidelines setting forth requirements
17 
for registration of bikers with MTOs.
18 
Bikers that are not registered with an MTO shall ensure that the certifications
19 
issued to them by the TESDA-accredited institution are valid or renewed throughout
20 
the duration of the validity of their CPC or MOP and that they undergo continuing
21 
safety and skills training with a curriculum duly certified by TESDA.
22 
Sec. 14. Effect of Non-Use of a CPC or MOP. - If an MTO or biker fails to use a
23 
CPC or MOP within one (1) year from its issuance, the LTFRB or the relevant LGU may,
24 
after due notice and hearing, order the cancellation or suspension of the CPC or MOP,
25 
Provided, That such MTO or biker whose CPC or MOP was ordered cancelled shall not
26 
be precluded from applying for a new CPC or MOP in accordance with the requirements
27 
provided in this Act.
28 
Sec. 15. Operation of Motorcycies-For-Hire. - A biker who is authorized to
29 
operate as a motorcycle-for-hire pursuant to an MTO's CPC may only do so through
30 
the MTO's digital platform. The MTO shall ensure that such bikers are not holders of
31 
their own CPC or MOP and they are not authorized to operate as a motorcycle-for-hire
32 
pursuant to another MTO's CPC. The LTFRB shall work with MTOs to create a database


1 
of bikers that have been authorized by MTOs to operate as motorcycles-for-hire under
2 
their CPCs. The database shall be maintained by the LTFRB and shall be accessible to
3 
MTOs for the limited purpose of verifying if any biker who applies for authorization to
4 
operate as a motorcycle-for-hire under their CPC has not been issued their own CPC
5 
or MOP and has not been authorized to operate as a motorcycle-for-hire by another
6 
MTO.
7 
A biker who is the holder of a CPC or MOP shall be allowed to adopt a multi-
8 
homing approach within the service areas designated in their CPC or MOP and MTOs
9 
are prohibited from refusing a biker's application for accreditation solely on the ground
10 
that such biker is accredited by another MTO.
11 
Except for private use, any operation of motorcycles-for-hire outside of an MTO
12 
in areas with accredited MTOs shall be considered co/o/u/t? and, therefore, illegal.
13 
Sec. 16. Fare Setting. -The fares, including surcharges and other transportation
14 
fees, that may be charged by bikers shall be as follows:
15 
(a) Fares charged by bikers for the provision of motorcycle-for-hire services
16 
within metropolitan and highly urbanized areas must be in accordance with the fare
17 
structure issued and within the parameters determined and prescribed by the LTFRB,
18 
in consultation with stakeholders of the motorcycle taxi industry, including bikers and
19 
MTOs, and subject to the approval of the DOTr;
20 
(b) Fares charged by bikers for the provision of motorcycle-for-hire services in
21 
other areas must be in accordance with the fare structure issued and within the
22 
parameters determined and prescribed by the relevant LCDs.
23 
The fare structure to be implemented by the LTFRB and the LCDs must take into
24 
consideration supply and demand components and shall allow dynamic pricing on
25 
account of market variations based on location and time. The fare structure and
26 
parameters for determining the applicable fares, including the minimum fee that may
27 
be charged by holders of CPCs issued by the LTFRB, shall be periodically reviewed by
28 
the LTFRB and the LGUs.
29 
Sec. 17. Processing of Personai Data. - Any processing, collection, use and/or
30 
storage of personal information and sensitive personal information involved in the
31 
operations of motorcycles-for-hire, registration/accreditation of bikers, bookings, and
32 
other activities under this Act shall be done in accordance with the provisions of


1 
Republic Act No. 10173, otherwise known as the "Data Privacy Act of 2012."
2 
Sec. 18. Liabilities for Death, Injuries or Damage to Property. -The biker and
3 
the MTO that facilitated the transportation service at the time when the death, injury
4 
or damage to persons or property occurred in the course of the operation of a
5 
motorcycle-for-hire shall be jointly and solidarily liable for civil liabilities arising from
6 
such death, injury or damage, with rights of subrogation against any party at fault:
7 
Provided, That the liability of the MTO shall not exceed the amount of the insurance
8 
coverage of the biker; Provided further, That the following provision on civil liability is
9 
without prejudice to the imposition of appropriate criminal and/or administrative
10 
liabilities on the driver at fault.
11 
Sec. 19. Accident Quick Response System. - MTOs shall establish and maintain
12 
a quick response team to provide immediate medical care or bring any person injured
13 
by a motorcycle-for-hire providing transportation services facilitated by such MTOs to
14 
the nearest hospital or medical facility able to provide sufficient necessary care. When
15 
a person injured by the operation of a motorcycle-for-hire is prevented from receiving
16 
medicai care due to financial constraints, the MTO shall advance a reasonable amount
17 
necessary for the provision of such medical care and, if necessary, the admission of
18 
such injured person to a hospital or medical facility up to the maximum amount of the
19 
insurance coverage of the biker.
20 
A function that will allow the biker or passenger to alert the quick response team
21 
during an emergency or road incident shall be a required feature of an MTO's digital
22 
platform. An MTO shall implement a similar system that will allow a biker or passenger
23 
to alert their quick response team during an emergency or road crash.
24 
Sec. 20. Reportoriai Requirements. - MTO shall submit quarterly reports
25 
containing rides, safety, and accident data to the LTFRB, which data shall be utilized
26 
in regulating and improving overall traffic management and local mobility conditions
27 
and to gain industry-wide insights on MTO operations.
28 
The LTFRB shall ensure that reports are submitted through an online facility
29 
equipped with a data aggregation tool to ensure that the data accessible to the LTFRB,
30 
any other governmental authority, and to the general public is consolidated and
31 
anonymized to prevent association of any data with any specific MTO.
32 
The LTFRB may not compel MTOs to submit proprietary or confidential data on
8


1 
its business operations or strategies, such as but not limited to trade secrets, any
2 
financial data not otherwise accessible to the public, and technical information such
3 
as systems, source codes, and software.
4 
Sec. 21. Confidentiality. - The LTO, LTFRB, DOTr, and other relevant
5 
government agencies shall not disclose any proprietary and confidential data unless
6 
prior consent of the owner of such data has been obtained by the requesting party.
7 
Sec. 22. Enforcement - Unless otherwise provided under this Act, the LTFRB
8 
shall have original and primary jurisdiction over the enforcement and implementation
9 
of the provisions of this Act, and its implementing rules and regulations, and shall
10 
exercise the following powers and functions:
11 
(a) Conduct administrative proceedings for any violation of this Act and its
12 
implementing rules, upon its own initiative, a verified complaint in writing from any
13 
interested party or referral by any concerned regulatory agency;
14 
(b) Upon finding after notice and hearing, based on substantial evidence, that
15 
an MTO or biker has violated any provisions of this Act or its implementing rules, to
16 
stop or redress the same by applying penalties prescribed under this Act, including
17 
the revocation of CPCs and MOPs, and the imposition of fines, under such reasonable
18 
parameters as shall be prescribed by the ruies and regulations implementing this Act;
19 
(c) Charge reasonable fees to defray the administrative costs of services
20 
rendered; and
21 
(d) Monitor compliance by persons or entities with the provisions of this Act.
22 
LGUs shall have original and primary jurisdiction to resolve issues or complaints
23 
in relation to vioiations of the terms and conditions of an MOP or for non-compliance
24 
with the fare matrix prescribed by LGUs for the provision of motorcycle-for-hire
25 
services.
26 
For the avoidance of doubt, MTOs shali not be precluded from exercising the
27 
power to impose sanctions such as suspension or blacklisting of bikers on account of
28 
violation of internal rules made known to them, acts detrimental to safety and security,
29 
and other reasonable or valid grounds.
30 
Sec. 23. Protection Against Anti-Competitive Conduct. - The LTFRB shall protect
31 
MTOs, bikers, and the riding public from monopolistic conduct, anti-competitive
32 
conduct, and unfair trade practices, and shall exercise all powers and functions


1 
consistent with this Act, to ensure such protection.
2 
(a) The following acts by MTOs shall be prohibited under this Act:
3 
(i) Consummating a merger or acquisition which will give rise to a change
4 
in control of the MTO without securing the prior endorsement of the DOTr. This
5 
requirement shall be separate from and in addition to the notification
6 
requirements under Republic Act No. 10667, otherwise known as the "Philippine
7 
Competition Act."
8 
(ii) Engaging in any anti-competitive conduct that has the object or effect
9 
of substantially preventing, restricting or lessening competition in the market for
10 
motorcycle-for-hire services.
11 
(iii) Leveraging network effects in a separate market to gain undue
12 
advantage or dominance in the market for motorcycle-for-hire services. Network
13 
effects arise when the value of a product or service increases the more people
14 
use such product or service. In markets that depend on two or more user groups,
15 
network effects occur when the number of users in one group affects the value
16 
derived by users of the other group from the product or service.
17 
(iv) Using dominance in a separate market to gain advantage in the
18 
market for motorcycle-for-hire services. There is a presumption of dominance if
19 
the market share of an MTO in the separate market is at least fifty percent
20 
(50%).
21 
(b) The following acts committed by MTOs shall give rise to a prima facie
22 
presumption of anti-competitive conduct:
23 
(i) When an MTO that operates a digital platform that has allowed it to
24 
accumulate a considerable database of users and ready supply of bikers enters
25 
the market for motorcycle-for-hire services;
26 
(ii) Owning or operating, whether directly or indirectly, more than one
27 
MTO offering motorcycle-for-hire services;
28 
(iii) Refusing to accept or denying a biker's application for registration
29 
solely on the ground that such biker is registered with another MTO, unless such
30 
biker is operating as a motorcycle-for-hire under another MTO's CPC;
31 
(iv) Implementing incentive or other programs or loyalty-rewarding
32 
schemes that have the object or effect of inducing bikers or customers to utilize
10


1 
the services of an MTO exclusively or of several MTOs owned or operated,
2 
whether directly or indirectly, by the same persons or entity;
3 
(v) Offering benefits, products or services to bikers intended to help them
4 
with their needs, inciuding but not iimited to financial products and services such
5 
as iow-interest business ioans and bespoke insurance plans, the enjoyment or
6 
utilization of which is subject to a condition prohibiting bikers from using the
7 
services of a different MTO that is not owned or operated, whether directly or
8 
indirectly, by the same persons or entity that owns or operates, whether directly
9 
or indirectly, the offering MTO;
10 
(vi) Charging fares below the minimum fee provided in Section 16(a); and
11 
(vii) Any other conduct that is similar or analogous to the above described
12 
acts.
13 
Sec. 24. Prohibited Acts. - The following acts shail be unlawful and punishable
14 
under Section 25 of this Act:
15 
(a) Of MTOs:
16 
(i) 
Operating as an MTO without a valid accreditation;
17 
(ii) 
Authorizing bikers to operate as a motorcycle-for-hire without a
18 
valid CPC or MOP, uniess such authorization is granted pursuant to the
19 
MTO's CPC;
20 
(iii) Refusing or denying a biker's appiication for registration soiely
21 
on the ground that such biker is registered with another MTO;
22 
(iv) Charging any fares, surcharges or other transportation fees not
23 
in accordance with the fare structure issued and within the parameters
24 
determined and prescribed by the LTFRB or relevant LGU;
25 
(v) 
Failure to submit reportorial requirements to the LTFRB; and
26 
(vi) Failure to comply with any requirement for the maintenance of
27 
its accreditation and/or CPC under this Act or as prescribed in the
28 
impiementing ruies and regulations.
29 
(b) Of bikers:
30 
(i) 
Operating as a biker without a vaiid authorization from an MTO
31 
pursuant to the MTO's CPC, a CPC or an MOP;
11


1 
(ii) Charging any fares, surcharges or other transportation fees not
2 
in accordance with the fare structure issued and within the parameters
3 
determined and prescribed by the LTFRB or relevant LGU; and
4 
(iii) Failure to comply with any requirement for the maintenance of
5 
its authorization, CPC or MOP under this Act or as prescribed in the
6 
implementing rules and regulations.
7 
Sec. 25. Penalties. - The LTFRB may impose a fine of not less than One million
8 
Philippine Pesos (PHP1,000,000.00) but not more than Ten million Philippine Pesos
9 
(PHP10,000,000.00) upon any MTO that has committed any of the prohibited acts
10 
under Section 24 of this Act. A biker found liable for any of the prohibited acts under
11 
Section 24 of this Act shall be blacklisted from operating motorcycles-for-hire.
12 
In addition to the foregoing penalties, any biker who operates a motorcycle-for-
13 
hire in violation of traffic rules and regulations, carrying capacity, and licensing
14 
requirements shall suffer the appropriate penalty imposed under the applicable law,
15 
ordinance, rule or regulation for such violation. The LTO shall impose the appropriate
16 
penalty on an erring biker commensurate to the gravity of the offense and frequency
17 
of commission.
18 
Sec. 26. Taxation of MTOs. - The gross remittances of MTOs to bikers for
19 
services sold through their digital platforms or through other means used to connect
20 
such bikers with customers or users shall not form part of the taxable income of the
21 
MTO and shall not be subject to income tax or withholding tax on the part of the MTO.
22 
The term gross remittance shall refer to the total amount of the value of the services
23 
of a biker net of any commissions or service fees due to and deducted by the MTO
24 
that is collected by the MTO on behalf of such biker, regardless of whether the
25 
payment for the services is in cash or made through electronic payment channels, and
26 
remitted by the MTO to the biker. An MTO shall be liable for value-added tax only for
27 
its commissions or service fees.
28 
Sec. 27. Incentives. - The following incentives shall be made available to MTOs:
29 
(a) Income Tax Holiday. - In order to promote the expansion of transportation
30 
services, pioneer MTOs shall be granted an exemption from payment of income tax
31 
for a period of five (5) consecutive years from the effectivity of this Act and non-
32 
pioneer MTOs shall be granted an exemption from payment of income tax for a period
12


1 
of three (3) years from the date of their registration. A pioneer MTO refers to operators
2 
that were accredited under the piiot program for motorcycie taxis before 2020. The
3 
period for exemption may be extended for an additional period of two (2) years,
4 
contingent upon meeting performance benchmarks related to service quality, safety,
5 
and environmental compliance, as may be prescribed by the LTFRB.
6 
(b) Zero-Rated Value-Added Taxon Services. - Services provided by registered
7 
MTOs shall be subject to zero percent (0%) value-added tax.
8 
(c) Regional Development Incentives. - MTOs that establish operations in rural
9 
and less-developed areas, including but not limited to third-class municipalities and
10 
mountainous regions, designated by the National Economic and Development
11 
Authority upon the recommendation of the Department of the Interior and Local
12 
Government, shall receive extended tax holidays, infrastructure development grants,
13 
and employment subsidies.
14 
Sec. 28. Income Tax Rates for Bikers. - For a period of two (2) consecutive years
15 
from the effectivity of this Act, bikers shall enjoy a preferential tax rate of five percent
16 
(5%) on their gross income in excess of Three Hundred Fifty Thousand Pesos
17 
(PhP350,000.00) derived from their operations as a motorcycle-for-hire: Provided,
18 
That their gross income does not exceed the value-added tax threshold provided in
19 
Section 109(BB) of Republic Act No. 8424, otherwise known as the "National Internal
20 
Revenue Code of 1997," as amended. Upon the expiration of the two (2)-year period,
21 
bikers shall be subject to the income tax rates set out in Section 24 of the National
22 
Internal Revenue Code of 1997.
23 
Sec. 29. Exemption of Technology Professionals from Income Tax. - To
24 
incentivize recruitment and retention of skilled technology professionals in recognition
25 
of the importance of fostering growth and innovation in the technology sector and in
26 
support of technology entrepreneurship in the country, technology professionals,
27 
including but not limited to software developers, engineers, and IT specialists, shall
28 
be exempt from the payment of income tax for a period of five (5) consecutive years
29 
from the effectivity of this Act. This exemption shall apply only to compensation
30 
income and shall not extend to other sources of income.
31 
In order to qualify for the exemption, the technology professional must be a
32 
regular full-time employee and hired to work in a position directly related to technology
13


1 
or essential digital platform operations.
2 
MTOs employing technology professionals benefitting from the exemption shall
3 
be required to report the employment status and aggregate income information of
4 
their technology professionals to the BIR on an annual basis. Any changes in
5 
employment status or employing MTO must also be reported by the MTO and
6 
technology professionals to the BIR.
7 
Sec. 30. Appropriations. - The amount needed for the initial implementation of
8 
this Act shall be taken from the current year's appropriation of the LTFRB. Thereafter,
9 
such sums as may be necessary for its continued implementation shall be included in
10 
the annual General Appropriations Act.
11 
Sec. 31. Transitory Provision. -In order to provide a smooth transition in the full
12 
Implementation of this Act, operators that are accredited under the pilot program for
13 
motorcycle taxis before 2020 shall be deemed to have been accredited as an MTO
14 
under Section 9 of this Act and shall be issued CPCs pursuant to Section 11(a) of this
15 
Act. Bikers registered with such MTOs shall be authorized to operate as motorcycles-
16 
for-hire under the MTO's CPC.
17 
Sec. 32. ImpiementingRuiesandReguiations. -The DOTr, in coordination with
18 
the LTFRB, LTO, BIR, TESDA, Department of the Interior and Local Government,
19 
Metropolitan Manila Development Authority, and Philippine National Police-Highway
20 
Patrol Group, and in consultation with stakeholders, shall within ninety (90) days from
21 
the effectivity of this Act shall promulgate the necessary rules and regulations to carry
22 
out the implementation of this Act.
23 
Sec. 33. Separability Clause. - If for any reason any clause, sentence, section or
24 
part of this Act is declared invalid or unconstitutional, the remaining portions of this
25 
Act not otherwise affected shall remain valid and subsisting.
26 
Sec. 34. Amendatory and Repealing Clause. - The specific provisions of Republic
27 
Act No. 4136 that are inconsistent with this Act are hereby amended or repealed
28 
accordingly.
29 
All provisions of laws, decrees, executive orders, presidential issuances, and
30 
other administrative rules and regulations, or parts thereof, which are incompatibie or
31 
inconsistent with the provisions of this Act are hereby repealed, amended or modified
32 
accordingly.
14


1 
Sec. 35. Effectivity. - This Act shall take effect fifteen (15) days after its
2 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
15