Republicort`riePhilippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
House Bill No. 8049
Introduced by Representative Midy N. Cua
Lone District, Quirino
RECEIVED
DATEJLflgiv
AN ACT
AMENDING REPUBLIC ACT NO. 8794, ENTITLED "AN ACT IMPOSING A MOTOR
VEHICLH USER'S CHARGE 0N OWNERS 0F ALL TYPES 0F MOTOR VHHICLES j!IND
FOR OTHER PRUPOSES," AS AMENDED BY REPUBLIC ACT NO.11239
EXPLANATORY NOTE
The motor vehicle user's charge (MVUC) was imposed on private, for hire, and government motor
vehicles under Republic Act No. 8794. in lieu of the registration fee under Section 8 of the Republic
Act. No. 4136, as amended by BP 74 and the Private Motor Vehicle Tax under Executive Order No.
43, series of 1986. The MVUC was implemented to secure funding for the maintenance of national
and  provincial  roads  and  address  the  negative  impact  of vehicles  on  the  environment.  Since  the
enactment of RA No. 8794 in 2000. the MVUC rates were only adjusted in 2004 and have not been
adjusted for inflation for the past 18 years.
More than two  decades  have passed  since  the  first implementation  of the  MVUC,  with  chariging
times calling for the demand to make the MVUC simpler. This bill, following House Bill No. 6136
filed by  the  Representation  in the  I 8th  Congress,  introduces  the  Motor  Vehicle  Road  User's  Tax
(MVRUT). This proposed bill imposes an optimal motor vehicle road user's tax for all private or for
hire  motor  vehicles  including  government-owned  vehicles,  while  motorcycles  with  or  without
sidecars  are excluded  from the MVRUT.  A  lower rate  is charged for vehicles for hire-pegged at
50% of the MVRUT rate for private and government vehicles.
This bill also retains the existing multi-tiered structure and phased increase for three years to cushion
the  impact  of the  proposed  I\AVRUT  rates  increase.  In  the  fourth  year  of  implementation.  the
MVRUT system is proposed to be sinplified by applying a single rate for all types of motor vehicles,
whether private, government or for hire. The revenues from the proposed increase of MVRUT will
finance  road   infrastructure  projects,  modemization  of  public  utility  vehicles,  and  government
programs for the prevention of roacl accidents.
This   measure   previously   passed   the   third   reading   in   the   l8th   Congress,   and   was   filed   by
Representatives  Joey  Sarte  Salceda,  Luis  Raymund  "LRay"  F.  Villafuerte,  Jr.,  Alfred  Vargas,
Bienvenido M. Abante, Jr., Estrellita 8.  Suansing, Sharon  S. Garin, Alyssa Sheena P. Tan, Krjstine
Singson-Meehan,  Stella Luz A.  Quimbo, Mohamand Khalid Q. Dimaporo, Elpidio F. Barzaga, Jr.,
Wilton "Tonton" T. Kho, Faustino Michale Carlos T. Dy, Ill, Paul Ruiz Daza, Jose "Jun" L. Ong, Jr.,
Joselito "J()el" S.  Sacdalan, Cesar "Jawo" I. Jimenez, Jr., Emmarie "Lolypop" Ounno-Dizon, Eric G.
Tap, Mark 0. Go, Joy Myra Salvador-Tambunting, Adriano A. Ebcas, Jose Enrique "Joet" S. Garcia,


111,  Allan  Benedict  S.  Reyes,  Rormie  L.  Ong,  Isidro  T.  Ungab,  Junie  E.  Cue,  Jose  "Ping-Ping"  I.
Tejada,  Micaela  S.  Violago,  Greg  G.  Gasataya,  Romeo  M.  Jalosjos,  Jr.,  Juan  Miguel  Macapagal
Arroyo,  Peter John D.  Calderon.  Manuel  Jose  "Manmix"  M.  Dalipe,  Ed  Christopher  S.  Go,  Way
Kurat  Zamora,  Narciso  R.  Bravo,  Jr.,  Glona  G.  Labadlabad,  Jose  Francisco  "Kiko"  8.  Benitez,
Maximo Y. Dalog, Jr., Ranon "Mon-Mon" V. Guico Ill, Tyrone D. Agabas, Adbullah D. Dinaporo,
Yasser  Alonto  Balindong,  Gabriel  H.  Bordado,  Jr.,  Isagani  S.  Amatong,  Joel  Mayo  Z.  A]mario,
Lorenz  R.  Defensor,  Alfred  C.  Delos  Santos.  Ferdinand  R.  Gaite,  and  Rossana  'Ria"  Vergara  as
authors thereof.
In view of the foregoing, approval of this measure is earnestly sought.
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila
NINETEENTH CONGRESS
First Regular Session
HouseBillNo.`8049
Introduced by Representative Midy N. Cua
Lone District, Quirino
AN ACT
AMENDING REPUBLIC ACT NO. 8794, HNTITLED "AN ACT IMPOSING A MOTOR
VEHICLE USER'S CHARGE ON OWNERS 0F ALL TYPES 0F MOTOR VEHICLES AND
FOR OTHER pRurosEs," As AMENDFD By REpuBLlc ACT NO. I 1239
Be it enacted by the Senate and House Of Rjepresentalives Of the Philippines in Congress assembled:
SECTION I. This Act shall be known as the "Motor Vehicle Road User's Tax Act."
3        SEC.  2.  Section  2  of Republic  Act No.  8794,  as  amended  by  Republic  Act No.11239,  is  hereby
4       amended to read as follows:
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"Snc. 2. Coverage. -[In lieu of the registration dee 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]  THE MOTOR VEHICLE
ROAD USER'S TAX SHALL BE 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."
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14       SEC.  3.  Section  3  of Republic  Act No.  8794,  as  amended  by  Republic  Act No.11239,  is  hereby
15       amended to read as follows:
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"SEC.  3.  [Rates  of the  Motor  Vehicle  User's  Charge.  -  ]  RIrES  OF A40roR
yEflJCZE ROAD LrsEJi'S 7:4X ~ [(a) For private passenger cars registered as of the date of
the effectivity of this Act, the MVUC to be paid shall be the private motor vehicle lax under
Executive Order No.  43,  series of 1986,  plus  twenty-five percent (25%)  for the  first year,
fifty percent (50%) for the second year, seventy-five percent (75°/o) for the third year, and one
hundred percent (100%) for the fourth year and thereafter: Provided, however, That private
passenger  cars  to  be  registered  for the  first time  after the  effectivity  of this  Act,  shall  be
subject to the MVUC rates prescribed in Section 3@) hereof.]
["(b)  Except  as  provided  under  Section  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  percent (25%)  in the rust year
from the effectivity of this Act; the said base rates plus fifty percent (50%) in the second year
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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 the 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  sports  utility  vehicles  shall  be  fifteen  percent  (15°/o)  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).]
Type of Vehicle
Private and Government
A.   Passenger cars
(1)  GVW up to I,600 kgs.
(2)  GVW more than 1,600 kgs. -2,300 kgs.
(3)  GVW more than 2,300 kgs.
8.   Utility vehicles
GVW up to 2,700 kgs.
GVW more than 2,700 kgs. - 4,500 kgs.
C.   Motorcycles
Without sidecar
With side car
D.   Buses
GVW more than 4,500 kgs.
E.   Trucks
GVW more than 4,500 kgs.
F.    Trailers
GVW more than 4,500 kgs.
11.
For Hire
A.   Passenger cars
(1)  GVW up to 1,600 kgs.
Base Rates
P1,000
P1,00  +  P20  per   loo  kgs.
Over 2,700 kgs.
P900+P12  per  100  kgs.  of
GVW over 2,700 kgs.
P900+P12  per   100  kgs.  of
GVW over 2,700 kgs.
P900+P12  per  loo  kgs.  of
GVW over 2,700 kgs.
P450
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(2)  GVw more than 1,600 kgs. -2,300 kgs.                 900
(3)  GVW more than 2,300 kgs.
8.   Utility vehicles
GVW up to 4,500 kgs.
C.   Motorcycles
Without sidecar
With side car
D.   Buses
GVW more than 4,500 kgs.
E.    Trucks
GVW more than 4,500 kgs.
F.    Trailers
GVW more than 4,500 kgs.
2,500
P15 per loo kgs. Of GVW
P15 per loo kgs. of GVW
P900+P12  per  100  kgs.  of
GVW over 2,700 kgs.
P12 per 100 kgs. of GVW ]
[After  the  fourth  year  from  the  effectivity  of this  Act,  the  President  of the
Philippines may adjust the rates contained in  Section 3  which shall be reflective of
but shall not exceed the annual rate of increase of the Consumer Price Index (CPI).
The President may adjust such rates not more than once every five (5) years.]
I.THERn   SHALL   BE   LEvlED,  AssEssED,   AND  CoLLECTHD  oN
REGISTERED  PRIVATE  AND  GOVERNMENT  VEHICLES,  A  MOTOR
VHHICLE  ROAD  USHR'S  TAX  WHICH  SHALL  BE  COLLECTED  FROM
AND    PAID    BY    THE    OWNER    0F    THE    MOTOR    VEHICLF    IN
ACCORDANCE WITH THE FOLLOWING SCHEDULE:
TYPE OF VEHICLE
2023
2024
2025
2026ONWARDS
PRIVATE AND GOVHRNMHNT
A.  PASSENGER CARS:
GROSS VEHICLEWFIGHT(GVW)UP TO1,600KILOGRAMS(KG)
2'080
2'560
3,040
50/o
GVW MORE THAN 1,600
4'680
5,760
6'840
KG UP TO 2300 KG
INCREASH
GVW MORE THAN 2£00KG
10,400
12'800
15200
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81. UTILITY VEHICLES:
GVW UP TO 4,500 KG
I.40 PER
2.50 PER
3.40 PER
50/o
KGOF
KG0F
KGOF
GW
GVW
GVW
INCREASH
82. SPORTS UTILITY VEHICLES
GVW UP TO 49500 KG
1.40 PER
2.50 PER
3.40 PER
50/o
KG0F
KG0F
KG0F
GW
GVW
GVW
INCREASE
C. MOTORCYCLES
WITHOUT SIDECAR
0
0
0
0
WITH SIDECAR
0
0
0
0
D. BUSES
GVW ABOVE 4500 KG
I.40 PER
2.50 PER
3.40 PER
50/o
KGOF
KGOF
KG0F
GVW
GVW
GVW
INCREASE
E. TRUCKS
GVW ABOVE 4,500 KG
I.40 PER
2.50 PFR
3.40 PER
50/o
KG0F
KG0F
KG0F
GVW
GVW
GW
INCREASH
F.   TRAILERS
GVW ABOVE 4500 KG
I.40 PER
2.50 PER
3.40 PER
50/o
KG0F
KGOF
KG0F
GVW
GVW
GVW
INCREASH
"PJiopTDED,  THAT  FOR  HIRE  VEHICLES  SHALL  BE  SUBJECT
To 5oo/o oF THE ABovE TAx RATHs. pRortDED, HoWEraR, THAT IN
THE  EVFNT  THE  ABOVE  TAX  RATE  WILL  RHSULT  IN  DOWNWARD
ADJUSTMENT  0F  TAX  RATES,  THE  APPLICABLE  MOTOR  VHHICLE
ROAD USER'S TAX 0F THH PRECEDING YEAR SHALL BE APPLIHD.
"p[iorlDED, Fuji7HER, THAT THE RATEs OF MOTOR vHHlcLE
ROAD  usER's  TAX  SHALL  BE  INCREASED  BT  FrvE  PERCENT  (5%)
ANNUALLY    HFFECTIVE    JANUARY    I,    2026    THROUGH    REVHNUH
REGULATIONS TO BH ISSUHD BY THE SECRETARY 0F FINANCE.
"AS USED IN THIS SECTION -
"(A) MoroR yEff7cLE SHALL MEAN ANT vEHlcLE pROpELLED
By  ANT   pOwER  OTHER  THAN   MuscuLAR  roivER  uslNG   THH
PUBLIC   HIGHWAYS   BUT  EXCEPTING   AIRCRAFT,   MOTOR  BOATS,
ROAD ROLLERS, TROLLEY CARS, STREET SWEEPERS, SPRINKLHRS,
LAWN MOWERS, BULLDOZHRS, GRADERS, FORK LIFTS, AMPHIBIAN
TRUCKS, AND CRANES NOT USED IN PUBLIC HIGHWAYS, VEHICLES
WHICH RUN ONLY ON RAILS 0R TRACKS, TRACTORS AND TRAILHRS
AND  TRACTION  ENGINES  0F  ALL  KINDS  USED  EXCLUSIVELY  FOR
AGRICULTURAL PURPOSES.
``TRAILERS    HAVING    ANY    NUMBER    OF    WHHHLS,    WHEN
PROPELLED 0R INTENDED TO BE PROPELLED BY ATTACHMENT TO
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A  MOTOR  VEHICLE  SHALL  BE  CLASSIFIED  AS  SEPARATB  MOTOR
VEHICLE WITH NO POWER RATING.
"(8)  GRoss  raRTczE  mETGffr SHALL  MEAN  THE  MEAsuRED
WEIGHT     OF     A     MOTOR    VEHICLE     AS     SPECIFIBD     BY     THE
MANUFACTURER   PLUS   THE   MAXIMUM   ALLOWABLE   CARRYING
CAPACITY    IN     MERCHANDISE,    FREIGHT,    OR    PASSENGER    AS
DETERMINED   BY   THE    ASSISTANT    SHCRETARY   0F   THE    LAND
TRANSPORTATION OFFICE (LTO).
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11        SEC.  4.  Section  4  of Republic  Act No.  8794,  as  amended  by  Republic  Act  No.11239,  is  hereby
12        amended to read as follows:
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"[SEC. 4. COVERNMENT MOTOR VEHICLES.  -]
"SEC.  4.  PAYMENT  OF  MOTOR  VEHICLE  ROAD  USER'S  TAX.  -  "The
manner of payment of the  [user's  charge]  MOTOR VEHICLE  ROAD  USER'S  TAX on
government   motor   vehicles   shall   be   in   accordance   with  the   prceedure   that   shall   be
promulgated by the Secretary of the Department of Budget and Management (DBM)[.] :
"(A)  MANNER OF  PAYMENT - THE  MOTOR VEHICLE ROAD USER'S TAX
SHALL     BE     PAII)     TO     THE     LTO     ANNUALLY     UPON     REGISTRATION,
CONFORMABLY    WITH    THE    REGULATIONS    ISSUED    JOINTLY    BY    THE
I)EPARTMENT  OF  FINANCE  (DOF)  AND  DEPARTMENT OF  TRANSPORTATION
(DOTr).
w(B) rnA/vrvEji oF co4LEc7yoIV oF REVHNUEs -THE MOTOR VEHICLE
ROAD USER'S TAX  SHALL BE  COLLECTED  BY  THE  LT0 AS PART  0F  THH
ANNUAL VEHICLE REGISTRATION IN ACCORDANCE WITH THE RATES SET
FORTH IN SECTION 3 HEREOF. THE DATES OF ANNUAL REGISTRATION 0F
MOTOR  VEHICLES  SHALL  BE  BASED  0N  TIIE  REGISTRATION  SCHEME
PROVIDED BY THH LTO.
"(C) EFFECT OF FAILURE TO PAY MOTOR VEHICLE ROAD USER'S TAX -
ANY RF.GISTRATI0N OF MOTOR VEHICLES NOT RENEWED 0N 0R BEFORE
THE DATE  FIXED BY THE  LTO SHALL BE CONSIDERED DELINQUENT AND
INVALID.''
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39       SEC. 5. Section 7 of the Republic Act No. 8794, as amended by Republic Act No.11239, is hereby
40       further amended to read as follows:
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"SEC. 7. Disposition of Monies Collected. -All monies collected under this Act shall
be  remitted  to  the  National  Treasury  under  a  special  account  in  the  General  Fund  to  be
earmarked solely for the construction, upgrading, repair and rehabilitation of roads, bridges,
and road drainage to be included in the amual General Appropriations Act[.] : PROT+ZDED,
THAT    FIFTY    PERCENT    (50%)    OF    THE     INCREMENTAL    REVENUFS
COLLECTED    UNDER   THIS    ACT    SHALL    BE    ALLOCATED    AND    USED
FXCLUSIVELY FOR THE FOLLOWING PURPOSHS:
"(I)  FORTY-FIVE  PERCENT  (45%)  FOR THE  MODHRNIZATI0N
0F  PUBLIC  UTILITY  VEHICLES,  PARTICULARLY  FOR THF,  EQUITY
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SUBSIDY  OF  PUBLIC  TRANSPORT  OPERATORS  CONSOLIDATHD  AS
TRANSPORT  COOPERATIVES  FOR  THH   ACQUISITION   OF  EURO-4
COMPLIANT   PUBLIC   UTILITY   VEHICLES   PLYING   AUTHORIZED
ROUTES    AS    DETERMINED    BY    THE    DOTr    AND    THE    LAND
TRANsroRTATloN     FRANCHlslNG     AND    REGULATORy    BOARD
(LTFRB):  pRoraDED,  THAT  SAID  INCREnmNTAL  REVENUHs  SHALL
BE  EARMARKED UPON APPROVAL 0F THIS ACT UNTIL DHCEMBER
31, 2027 FOR TIIE  MODERNIZATION OF PUBLIC  UTILITY VFHICLES:
pRoytDED,   Fz/RrHER,   THAT   THE   EARMARKED   FUNDs   SHALI.,
REVERT   TO   THE   SPECIAL   ACCOUNT   IN   THE   GENERAL   FUND
EFFECTIVE JANUARY 1, 2028;
"(2)  FIVE  PERCENT  (5%)  FOR  GOVERNMENT  PROGRAMS  TO
BE  UNDERTAKEN   FOR  PREVENTION  OF  DEATHS  DUH  T0  ROAD
ACCIDENTS,   AND   ACCIDENT   VICTIMS'   ASSISTANCE,   INCLUDING
THE FOLLOWING :
a)   THE     IMPROVEMENT     0F     EXISTING     DRIVERS'
EDUCATION    PROGRAMS,    TRAINING    ACADEMIES
AND  DRIVERS'   LICENSE   EXAMINATIONS  BY  THF,
LTO:
b)   THE   ESTABLISHMENT   OF   ADDITIONAL   MOTOR
VEHICLE INSPECTION CENTHRS BY THE LTO;
c)   THE    IMPROVEMENT    OF    ROAD    MANAGEMENT
SYSTFMS BY THE DOTr:
d)   THE            PROVISION            OF            SUPPLEMENTAL
HOSPITALIZATION COVERAGE BY THE PHILIPPINE
HEALTH INSURANCE CORPORATION (PHILHEALTH)
FOR VICTIMS OF ROAD ACCIDENTS;
e)   THE        PROVISION        BY        THE        EMPLOYEES'
COMPENSATION    COMMISSION    0F    WORKMEN'S
C OMPE N S ATI0N       FOR       VICTIMS       OF       ROAD
ACCIDENTS  WHO  ARE  UNABLE  T0  BE  GAINFULLY
EMPLOYED  FOR  A  CONTINUOUS  PERIOD  DUE  T0
DISABILITY.   PURSUANT   T0  THE   PROVISIONS  0F
REPUBLIC   ACT   NO.   772,   AS   AMENDED   OR   THH
WORKMEN'S COMPENSATION ACT; AND
I)    THE   nsTABLlsHMENT   Bv  THE   DEPARTMENT  oF
HHALTH  q}OH)  OF  EMERGENCY  CARE  FACILITIHS
IN ARIAS THAT  HAVE  HIGH  INCIDENCE  0F  ROAD
ACCIDENTS.
SEC. 6. /mp/eme#Jj.#g JZw/es and Jicgrt/CZJ;.o#s. - The DOTr, in coordination with the DOF, the DOH,
and the LTFRB  Shall promulgate the rules and regulations to implement this Act within thirty (30)
days from its effectivity.
47       SEC.  7.  Repec7/;.ng  C/cl#sc.  -  All  laws,  decrees,  executive  orders,  rules  and  regulations  or  parts
48       thereof, which are inconsistent with this Act, are hereby repealed, amended or modified accordingly.
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50       SEC. 8. Seprrczbj./z.fy c/a#se. -If any provision of this Act is held unconstitutional or invalid, all other
51        provisions not aft.ected thereby shall remain valid.
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I        SEC. 9. E#ec/I.vj.ty. -This Act shall take effect fifteen (15) days after its publication in the oj#cr.cr/
2       Gaze//e or in a newspaper ofgeneral circulation.
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4                     Approved ,
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