Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _7108

Introduced by Hon. HARLIN NEIL J. ABAYON, III

EXPLANATORY NOTE

For the whole year of 2017, the various car dealerships now operating in the
Philippines sold 425,672 units of motor vehicles. In 2016, there were 359,572 units
sold. Comparing the data for both years, there was a growth of 18.4 percent. These
figures do not yet include numbers of smuggled vehicles, which could be in the
thousands.

Higher taxes on motor vehicles could have some dampening effect on the
double-digit growth in motor vehicle sales, but there would likely be a shift in
demand and sales because the TRAIN Law provisions on excise taxes exempted
electric vehicles and light commercial vehicles, while excise tax rates for hybrid cars
were slashed by half.

Anticipating future increases in the number of vehicles being sold, this bill
seeks to regulate the number of vehicles that are added to those already on the roads
of our country and it does so by authorizing the Land Transportation Office to set
annual and monthly quotas on the number of motor vehicle registrations the LTO
approves and on the number of vehicle licenses plates issued,

In setting the annual and monthly quotas, as well as the rules on approval of
motor vehicle registrations and license plate applications, the LTO, DPWH, and UP-
NCTS shall consider various factors including, but not limited to:

1. vehicle road-worthiness;
2. road design and capacity;

Page | of 4


3. motor vehicle owner’s fitness to drive, type of driver’s license possessed,
and record of compliance to or violation of traffic laws, rules and
regulations;

4. payment of the proper taxes, duties and fees on the purchase and sale of
motor vehicles; and

5. financial capacity of the motor vehicle owner to maintain road-worthiness
of a motor vehicle as evidenced by annual income tax returns, certificates
of income tax withheld, proof of exemption from payment of income tax,
and certification of approved motor vehicle loan.

The LTO is required to consult with the Department of Public Works and
Highways and with the National Center for Transportation Studies of the University
of the Philippines.

The LTO shall review the quotas every five (5) years to determine whether
adjustments are necessary

Considering these bases, passage of this bill is earnestly sought.

NEIL J. ABAYON, III

Representative, AANGAT TAYO Party-list



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City
SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7108

Introduced by: Hon. HARLIN NEIL J. ABAYON, III

AN ACT
REGULATING THROUGH QUOTAS ON MOTOR VEHICLE
REGISTRATION APPROVALS AND LICENSE PLATE ISSUANCES THE
NUMBER OF VEHICLES ON THE ROADS OF THE PHILIPPINES, AND
FOR OTHER PURPOSES

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

Section I. Short Title. - This Act shall be known as the “Motor Vehicle
Registration and License Plates Quotas Act of 2018”.

Section 2. Declaration of Policy. - It is the declared policy of the State:

1. To regulate the acquisition, ownership, use, and disposition of property
and its increments;

2 To promote distributive justice and to intervene when the common good
so demands; and

3. To promote a just and dynamic social order through policies that promote
a rising standard of living, and an improved quality of life for all.

Section 3. Authority to Set Quotas on Approval of Motor Vehicle
Registrations and License Plates Issuance. The Land Transportation Office, in
consultation with the Department of Public Works and Highways and the National
Center for Transportation Studies of the University of the Philippines, is hereby


authorized to set annual and monthly quotas on the number and types of motor
vehicle registrations and license plates, both new and renewals, it shall approve and
issue.

In setting the annual and monthly quotas, as well as the rules on approval of
motor vehicle registrations and license plate applications, the LTO, DPWH, and UP-
NCTS shall consider various factors including, but not limited to:

6. vehicle road-worthiness;

7. road design and capacity;

8. motor vehicle owner's fitness to drive, type of driver's license possessed,
and record of compliance to or violation of traffic laws, rules and
regulations;

9. payment of the proper taxes, duties and fees on the purchase and sale of
motor vehicles; and

10. financial capacity of the motor vehicle owner to maintain road-worthiness
of a motor vehicle as evidenced by annual income tax returns, certificates
of income tax withheld, proof of exemption from payment of income tax,
and certification of approved motor vehicle loan.

The LTO shall review the quotas every five (5) years to determine whether
adjustments are necessary in furtherance of the implementation of this Act.

Section 4. Implementing Guidelines, Rules and Regulations. The LTO, in
consultation with the Department of Public Works and Highways and the National
Center for Transportation Studies of the University of the Philippines, shall
formulate and promulgate the guidelines, rules, and regulations necessary to
implement this Act.

Section 5. Separability. - If any provision or part of this Act is declared
invalid or unconstitutional, the remaining parts or provisions not affected shall
continue to be in full force and effect.

Section 6. Repealing Clause. - All laws, executive orders, and administrative
orders or parts thereof inconsistent with any provision of this Act are hereby repealed
or amended accordingly.

Section 7. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in the online version of the Official Gazette or in two (2)

newspapers of general circulation or with established internet website presence.

Approved.

Page 4 of 4