SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES :
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr. Nd

House Bill No. 4299

EXPLANATORY NOTE

Republic Act No. 8794 or “An Act Imposing a Motor Vehicle User's Charge on
Owners of All Types of Motor Vehicles and for Other Purposes was enacted last June 27,
2000.

With this new tax, the government was estimated to have been able to collect P90.7
billion from 2001 to December 2012. This amount is more commonly known as the Motor
Vehicle User's Fund. The average annual collection was at around P7 billion.

However, there were reports that as of the end of 2012, only P10.2 billion remained
of the fund.

Based on the law, the fund is supposed to be used exclusively for exclusively (1) for
road maintenance and the improved of the road drainage, (2) for the installation of adequate
and efficient traffic lights and road safety devices, and (3) for the air pollution control under
the Department of Public Works and Highways and the Department of Transportation and
Communications.

In the spirit of transparency and full disclosure, the funds created under Republic Act
8794 should instead be included in the general fund to be appropriated by Congress thru the
Annual General Appropriations Act. This would also make the fund subject to the checks
and balances provided for by the Constitution.

Ih view of the foregoing consideration, immediate approval of this bill is highly
recommended .

RUFUS B. RODI Zz

wos Chaves JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No_ 4293

AN ACT
AMENDING REPUBLIC ACT NO. 8794 OTHERWISE KNOWN AS “AN ACT IMPOSING A
MOTOR VEHICLE USER’S CHARGE ON OWNERS OF ALL TYPES OF MOTOR
VEHICLES AND FOR OTHER PURPOSES” BY INCLUDING THE SPECIAL FUNDS
CREATED TO THE GENERAL FUND OF THE NATIONAL GOVERNMENT

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

SECTION 4. Section 7 of Republic Act 8794 is hereby amended to read as follows:
Section 7. Disposition of Monies Collected. All monies
collected under this Act shall be earmarked solely and used
exclusively (1) for road maintenance and the improved of
the road drainage, (2) for the installation of adequate and
efficient traffic lights and road safety devices, and (3) for the
air pollution control, AS MAY BE DETERMINED BY
CONGRESS.

All such monies collected shall be deposited in [four (4)
special trust accounts in] the National Treasury AND FORM
PART OF THE GENERAL FUND OF THE PHILIPPINES
TO BE APPROPRIATED BY CONGRESS IN THE
ANNUAL GENERAL APPROPRIATIONS ACT.[, namely:
(1) Special Road Support Fund; (2) Special Local Road
Fund; (3) Special Road Safety Fund: and (4) Special
Vehicle Pollution Control Fund, The distribution of
collections under this Act shall be as follows:

1, Eighty percent (80%) shall be allotted to and placed in
the Special Road Support Fund;

2. Five percent (5%) shall be allotted to and placed in the
Special Local Road Fund;

3. Seven and one half percent (7.5%) shall be allotted to
and placed in the Special Vehicle Pollution Control Fund.

The Special Road Support Fund, the Special Local Road
Fund shall be under the DPWH, whereas the Special
Vehicle Pollution Control Fund shall be under the DOTC.

‘Seventy percent (70%) of the Special Road Support Fund
shall be used for the maintenance of, and the improvement


of drainage of national primary roads. The remaining thirty-
percent (30%) thereof shall be allocated and use for the
maintenance, and improved of drainage of national
secondary roads throughout the country

The cost of installation of adequate and efficient traffic lights,
and road safety devices throughout the country, where such
traffic lights and safety devices are needed, shall be taken
from the Special Road safety devices.]

IA Road Board to implement the prudent and efficient
management and utilization of the special funds shall be
organized by the President of the Philippines. The Road
Board shall be composed of seven (7) members, with the
secretary of the DPWH as exofficio head, and the
secretaries of the Department of Finance, Budget and
management, and the Transportation and Communication,
as ex officio members. The remaining three (3) members
shall come from transport and motorist organization, which
have been in existence and active for the last five (5) years
prior to this Act. They shall be appointed for the term of two
(2) years each by the President of the Philippines upon the
recommendation of the secretaries of the DPWH and the
DOTC]

SECTION 2. Section 8 of Republic Act 8794 on Status of the Special Funds is hereby
deleted,

SECTION 3. Repealing Clause ~ All laws, decrees, orders, rules and regulations, and other
issuances or parts thereof, that are contrary to or inconsistent with this Act are hereby
repealed or amended accordingly.

SECTION 4. Effectivity - This Act shall take effect fifteen (15) days following its publication
in at least two (2) national newspapers of general circulation.

Approved,