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Republic of the Philippines
HOUSE OF REPRESENTATIVES,
‘Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

99
House Bill No. 3828

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE

In the Mid-Year report of 2015, the Philippines ranked as the fifth
(8") country in the world with the worst traffic conditions. In a study, it
was reported that average one-way commuting and traveling time or
time index in the Philippines spans 46.09 minutes before people reach
their destination.

If this traffic situation continued, the Metro Manila, in particular, is
at risk of becoming uninhabitable in the next few years. One of the
identified primary reasons of worst traffic situation is the annual new car
growth increase

According to the Chamber of Automotive Manufacturers of the
Philippines, Inc. (CAMPI), the Philippines is seen as an important
automotive market growth area in the region as the volume of vehicles
sold is expected to surge. Domestic vehicle sales in 2020 would
account to between eight percent (8%) to ten percent (10%) of the
projected total sales of five to six (6) million units within member
economies of the Association of Southeast Asian Nations
(ASEAN). From 168,000 units sold in 2010, vehicle sales in the
country reached 269,000 units in 2014 and are expected to surpass
industry target of 310,000 units in 2015. For this year, vehicle sales
teaching a new high of 350,000 units, on its way to 500,000 units by
2020.


In conjunction with other measures of improving access roads
and government projects in addressing the traffic situation, this bill
seeks to ease the volume of the vehicles by increasing the motor
vehicle user's charge (MVUC) under Republic Act No. 8794 for the
second and succeeding vehicles owned and registered by a person
regardless of the type of vehicle.

This bill imposes higher fees for every additional vehicle
purchased. The more vehicles owned and registered, the higher the
MVUC imposed. However, those persons engaged in the business of
transportation or whose business requires more than one (1) vehicles is
Not covered by the increased rates.

Moreover, the implementing agency is mandated to make the
necessary rules and regulations to prevent circumvention of this
measure such as naming the second and succeeding vehicles to other
person when in fact registered person does not own or has no capacity
to buy such vehicle.

In view of the foregoing, passage of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 3928

Introduced by Representative Sharon S. Garin

AN ACT INCREASING RATE CHARGES ON THE SECOND
AND SUCCEEDING REGISTERED MOTOR VEHICLE
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8794

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

Section 1. A new Section 3-A of the Republic Act No. 8794 shall be
inserted to be read as follows:

“Section 3-A Rates of the Second and Subsequent Motor Vehicle
User's Charge.- The second and succeeding private and government
vehicles, regardless of the type of the vehicles, owned and registered
by a person as of the date of the effectivity of this Act, the MVUC to be

paid shall be

MVUC | In oe 3° Year | 4"
Quantity | imposed | addition, | Year Year
Owned under _| for

EO 43 1" Year

S. 1986 |
Second | |
Car 2x__|30% | 60% | 90% | 120%

Third Car | 3x | 40% | 80% | 120% | 160%
FourthCar| 4x | 50% | 100% | 150% | 200%
[60% | 120% | 180% | 240%



For the second vehicle of a person, the MVUC shall be twice the
amount imposed under E.0. 43, S. 1986 plus thirty percent (30%) for
the first year, sixty percent (60%) for the second year, ninety percent
(90%) for the third year, one hundred twenty percent (120%) for the
fourth year, and one hundred fifty percent (150%) for the fifth year and
after,

For the third vehicle of a person, the MVUC shall be thrice the amount
imposed under E.O. 43, S. 1986 plus forty percent (40%) for the first
year, eighty percent (80%) for the second year, one hundred twenty
percent (120%) for the third year, one hundred sixty percent (160%) for
the fourth year, and two hundred percent (200%) for the fifth year and
after;

For the vehicle car of a person, the MVUC shall be four (4) times the
amount imposed under E.O. 43, S. 1986 plus fifty percent (50%) for the
first year, one hundred percent (100%) for the second year, one
hundred fifty percent (150%) for the third year, two hundred percent
(200%) for the fourth year, and two hundred fifty percent (250%) for the
fifth year and after

For the vehicle car of a person, the MVUC shall be four (5) times the
amount imposed under E.O. 43, S. 1986 plus sixty percent (60%) for
the first year, one hundred twenty percent (120%) for the second year,
one hundred eighty percent (180%) for the third year, two hundred forty
percent (240%) for the fourth year, and three hundred percent (300%)
for the fifth year and after,

For the succeeding cars of a person, the MVUC shall be as imposed as
many times in such sequence and rates in accordance with the above
pattern and formula

This Section shall not apply to those person engaged in the business of
transportation or whose nature of business requires more than one
vehicle. Provided, That the appropriate government agency shall
formulate rules and regulations in such a way that the provisions of this,
Act will not in any way be circumvented

For this purpose, a person is engaged in the business of transportation
when there is a legal obligation to carry passengers or freight or cargo
for a fee, and has no reasonable ground to refuse to do so subject to
the laws, rules and regulations of transportation, and other relevant
laws.”

SEC. 2. Implementing Rules and Regulations. - The Secretaries of the
Transportation and the Public Works and Highways shall jointly within thirty
(30) days from the effectivity of this Act, promulgate the rules and regulation


to implement and carry out the intent, objectives, purposes and provisions of
this Act

Sec. 3. Repealing Clause. ~ All laws, acts, decrees, executive orders,
issuances, and rules and regulations or parts thereof which are contrary to
and inconsistent with any provisions of this Act are hereby repealed,
amended, or modified accordingly,

Sec. 4. Separability Clause. - If any provision of this Act is
subsequently declared unconstitutional, the validity of the remaining
provisions hereof shall remain in full force and effect

Sec. 5. Effectivity. - This Act shall take effect immediately after its
complete publication either in the Official Gazette or in a newspaper of
general circulation in the Philippines.

Approved,