Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
.tt'
House Bill No.
INTRODUCED BY REPRESENTATIVES RALPH WENDEL P. TULFO,
]OCELYN P. TULFO, ERWIN T. TULFO, EDVIC G. YAP, AND ERIC G0 YAP
AN ACT AMENDING REPUBLIC ACT NO. 8794, ENTITLED "AN ACT
IMPOSING A MOTOR VEHICLE USER'S CHARGE 0N Ol^rNERS 0F ALL
TYPES 0F MOTOR VEHICLES AND FOR OTHER PURPOSES", AS AMENDED
BY REPUBLIC ACT NO. 11239
EXPLANATORY NOTE
Drawing   a   noteworthy   comparison   to   our   Southeast   Asian   neighbor,
Singapore,  where  higher  taxes  on  private  car  ownership  and  the  mandatory
possession of a certificate of entitlement contribute to keeping their roads uncluttered
and urban areas thriving, the University  of the Philippines School  of Urban and
Regional Planning reveals a striking revelation. Within Metro Manila, 70%  of the
population relies on public transportation and takes up only 22% of the road space,
while the remaining 30% comprising private vehicle users occupy a disproportionate
78% of the road's expanse. This data underscores an undeniable reality: private cars
consume considerably more road space than the more spatially-efficient modes of
transportation like trains and buses. Hence, there is a need to revamp the 23-year old
law, Republic Act No. 8794.
This  proposed  measure  introduces  the  Motor  Vehicle  Road  User's  Tax
(MVRUT), which aims to update and make Motor Vehicle User's Charge (MVUC)
simpler. Under this bill, an MVRUT will be imposed on all private or for-hire motor
vehicles, including those government-owned, while motorcycles with or without a
sidecar shall be excluded from the MVRUT.


In efforts of cushioning the impact of the proposed increase in MVRUT rates,
this bill will phase the said increase for three years and apply a single rate for all types
of motor vehicles - whether private, government, or for hire - only in the fourth year
of its implementation. Further, the revenues from the collection of MVRUT will be
allocated and used for the purposes of financing the modernization of pubhc utility
vehicles and several programs geared towards the prevention of casualties due to
road accidents as well as assistance to road accident victims.
In view of the foregoing, the urgent passing of this bill is eamestl
RALPH
Rife:„Lfr:e
TULFO
2nd District of Quezon city                   ACT-CIS partylist
Riapresentati
CT-GIS
Rapresentative
Lone District of Benguet
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Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
il'ouse Bill No.
1                INTRODUCED BY REPRESENTATIVES RALPH WENDEL P. TULFO,
2          TOCELYN P. TULFO, ERWIN T. TULFO, EDVIC G. YAP, AND ERIC GO YAP
3               AN ACT AMENDING REPUBLIC ACT NO. 8794, ENTITLED ``AN ACT
4           IMpoSING A MOTOR VEHICLE USER'S CHARGE ON oi^rNERS OF ALL
5      TYPES OF MOTOR VEHICLES AND FOR OTHER PURPOSES", AS AMENDED
6                                                       BY REPUBLIC ACT NO.11239
7
8           Be it enacted by the senate and the House of Rlapresentatives of the phihippines in congress
9       assembled:
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SECTION 1. This Act shall be known as the ``Motor Vehicle Road User's Tax Act."
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13           SEC. 2. Section 2 of Republic Act No. 8794, as amended by Republic Act No.11239,
14      is hereby amended to read as follows:
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16                ``SEC. 2. Gonenzgr. -Hn ricu of the registration fee under section 8 of Republic Act
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I 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 [mere
fully] provided in Section 3 hereof [a Motor Vchiclc Uscr'o Charge (MVUC)I, which
shall be collected from and paid by the registered owner of the motor vehicle."
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SEC. 3. Section 3 of Republic Act No. 8794, as amended by Republic Act No. 11239,
is hereby amended to read as follows:
'`SHC. 3. [Ratec Of the l\hotor Vehicle Udro Charge.  I RATES OF MOTOR VIFHCLE
ROAD LZSER'S TAX - [(a) For private pacocnger can] registered ao Of the date of the
cifectivity of this Act, the MVUC to be paid ohall be the private motor vchiclc tact
..._I_.. Tl.,__..I=.._ A.I_.. \T_   ,1®   ^.I_^  _f lno£   ..1..A I,..~i_.1=,,_ .._..___i /rlz=o/\ f,__ LL_
first year, fifty pe
third yur, and I
Provided, ho"~,
the cffcetivity of
3®) hereof.I
cffcctivity of this Act and thcrcaftcr:  P
vchidco ohall bc fifteen percent (15%) hi
utility vchiclco: Prmridrd,rtyrthar, That mo.
more than Three Hundred Pcsoo (P3cO).I
I. pri',Tats cL-Ld c-c','crrL+TLcrLt
A. Pourmger Care
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``TIIERE    SHALL    BE    LEVIED,    ASSESSED,    AND    COLLECTED    ON
REGlsTERED   PRIVATE   AND   GOvERNMEr`IT   vEHlcLEs,   A   MOTOR
vEHlcLE ROAD usER's TAx i^rlllcH SHALL BE coLLEcrED FROM AND
PAID   BY  THE   REGISTERED   0l^7NER   0F  THE   MOTOR   VEHICLE   IN
ACCORDANCE VITH THE FOLLOVING SCHEDULE:
TYPE 0F VEHICLE
2023
2024
2025
2026ONWARDS
PRIVATE AND GOVERNMENT
A. PASSENGER CARS:
GROSS VEHICLE l^rEIGHT
2,080
2j60
3,040
50/oINCREASE
(GVW) UP T0 1,6cO
KILOGRAMS (KG)
GVVV MORE THAN 1,600 KG
4,680
5,760
6xp
UP TO 2joo
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GVW MORE THAN 2joo KG
10,400
12£00
15'200
81. UTILITY VEHICLES
GVW UP TO 4joo KG
1.40 PER
2.50 PER
3.40 PER
5%INCREASE
KG0F
KGOF
KGOF
GW
GVW
GW
82. SPoRTS UTILrry vEHICLEs
GVwr UP To 4,5oo KG
1.40 PER
2.50 PER
3.40 PER
5%INCREASE
KG0F
KG0F
KG0F
GVW
GVW
GVW
C. MOTORCYCLES
VVITHOUT SIDECAR
0
0
0
0
VITH SIDECAR
0
0
0
0
D. BUSES
GVwr ABoVE 4,5oo KG
1.40 PER
2.50 PER
3.40 PER
50/oINCREASE
KGOF
KGOF
KG0F
GW
GW
GVW
E. TRUCKS
GVW ABOVE 4;00 KG
1.40 PER
2.50 PER
3.40 PER
50/oINCREASE
KGOF
KG0F
KG0F
GW
GW
GW
F. TRAILERS
GVW ABOVE 4joo KG
1.40 PER
2.50 PER
3.40 PER
50/oINCREASE
KG0F
KG0F
KGOF
GW
GVW
GW
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`'PROVID£I), TIIAT FOR-HIRE VEHICLES SHALL BE SUBJECT TO 50% OF
THE ABOVE TAX RATES: PROVTD£Z), HOWEVER, THAT IN THE EVENT THE
ABOVE TAX RATE WILL RESULT IN DOWNWARD ADJUSTMENT OF TAX
RATES, THE APPLICABLE MOTOR VEHICLE ROAD USER'S TAX 0F THE
PRECEDING YEAR SHALL BE APPLIED.
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1               "PROVIDED, FLRTRER, THAT THE RATES OF MOTOR VEHICLE ROAD
2           USER'S TAX SHALL  BE INCREASED BY FIVE PERCENT  (50/o)  ANNUALLY
3          EFFECTIVE JANUARY 1, 2026 THROUGH REVENUE REGULATIONS T0 BE
4           ISSUED BY THE SECRETARY OF FINANCE.
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6               ``AS USED IN THIS SECTI0N-
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8               ``(A) MOTOR VIHCLE SHALL MEAN ANY VEIIICLE PROPELLED BY ANY
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POWER    OTHER   TIIAN    MUSCULAR    POWER    USING    THE    PUBLIC
HIGHWAYS    BUT    EXCEPTING    AIRCRAFT,    MOTOR    BOATS,    ROAD
ROLLERS,   TROLLEY   CARS,   STREET   SWEEPERS,   SPRINKLERS,   LAWN
MOWERS, BULLDOZERS, GRADERS, FORK LIFTS, AMPHIBIAN TRUCKS,
AND CRANES NOT USED IN PUBLIC HIGHWAYS, VEHICLES WIIICII RUN
ONLY ON RAILS 0R TRACKS, TRACTORS AND TRAILERS AND TRACTION
ENGINES  0F  ALL  KINDS  USED  EXCLUSIVELY  FOR  AGRICULTURAL
PURPOSES.
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18               "TRAILERS HAviNG ANY NUMBER OF WIIEELS, WHEN PROPELLED OR
19          INTENDED T0 BE PROPELLED BY ATTACHMENT TO A MOTOR VEHICLE,
20           SHALL BE CLASSIFIED AS SEPARATE MOTOR VEHICLE WITH NO POWER
21           RATING.
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23               "(B) GRoss VIHrcLf WEIGHT SHALL MEAN TIIE MEAsuRED WEIGHT
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OF A MOTOR VEHICLE AS SPECIFIED BY THE MANUFACTURER PLUS THE
MAXIMUM   ALLOWABLE   CARRYING   CAPACITY   IN   MERCHANDISE,
FREIGHT,   OR   PASSENGER   AS   DETERMINED   BY   THE   ASSISTANT
SECRETARY 0F THE LAND TRANSPORTATION OFFICE (LTO)."
SEC. 4. Section 4 of Republic Act No. 8794, as amended by Republic Act No. 11239,
30      is hereby amended to read as follows:
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``[SEC. 4.
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3             "SEC.  4.  -  PAYMENT  0F  MOTOR  VEIIICLE  ROAD  USER'S  TAX  -  `'The
4        mamer of payment of the [uscr'8 chargc] MOTOR VHIICLE ROAD USER'S TAX
5        on government motor vehicles shall be in accordance with the proredue that shall be
6        promulgated by the secretary of the Department of Budget and Management (DBhrty
7[J:
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9                  ``(A) MAIVRER OF PAYMENT -THE MOTOR VEIIICLE ROAD USER'S TAX
10             SIIALL   BE   PAID   T0   THE   LT0  ANNUALLY  UPON   REGISTRATION,
11            coNFORMABL¥ WITII  TIIE  REGULATloNs  rssuED  Tolr`ITL¥  8¥ TIIE
12             DEPARTMENT     0F     FINANCE     (DOF)     AND     DEPARTMENT     0F
13             TRANSPORTATION (DOTr).
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15                 ``(B) MANNER OF COLLECHON OF REVINUES -THE MOTOR VEHICLE
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ROAD USER'S TAX SHALL BE COLLECTED BY THE LT0 AS PART 0F THE
ANNUAL VEHICLE REGISTRATION IN ACCORDANCE l^rlTH TI.IE RATES
SET   FORTH   IN   SECTION   3   HEREOF.   THE   DATES   0F   ANNUAL
REGISTRATION  OF  MOTOR  VIHICLES   SHALL   BE  BASED  ON  THE
REGISTRATION SCHEME PROVIDED BY THE LTO.
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22                "(c) EFFECT OF FAILURE TO pAy MOTOR VEmcLE ROAD usER's TAx -
23             ANY  REGISTRATION  OF  MOTOR  VEHICLES  NOT  RENEVVED  ON  0R
24             BEFORE   THE   DATE   FIXED   BY   THE   LT0   SHALL   BE   CONSIDERED
25             DELINQUENT AND INVALID."
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27           SEC. 5. Section 7 of Republic Act No. 8794, as amended by Republic Act No.11239,
28      is hereby further amended to read as fouows:
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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
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Fund   to   be   earmarked   solely   for   the   construction,   upgrading,   repair   and
rehabilitation of roads, bridges, and road drainage to be included in the annual
General  Appropriations  Act[=]:  PROVIDED, THAT FIFTY PERCENT  (500/o)  OF
THE INCREMENTAL REVENUES COLLECTED UNDER THIS ACT SHALL BE
ALLOCATED AND USED EXCLUSIVELY FOR THE FOLLOVING PURPOSES:
``(1)  FORTy-FlvE  pERCEr`IT  (45o/o)  FOR  THE  MODERNlzATloN  oF
puBLlc uTILITy vEHlcLEs, pARTlcuLARLy FOR TIIE EQurly suBslDy
OF PUBLIC TRANSPORT OPERATORS CONSOLIDATED AS TRANSPORT
COOPERATIVES  FOR  THE  ACQUISITION  0F  EUR04  COMPLIANT
PUBLIC   UTILrlT   VEHICLES   PLYING   AUTHORlzED   RouTEs   As
DETERMINED  BY  THE  DOTR  AND  THE  LAND  TRANSPORTATION
FRANCHISING AND REGULATORY BOARD (LTFRB): PROVIDED, THAT
SAID   INCREMENTAL   REVENUES   SHALL   BE   EARMARKED   UPON
APPROVAL   OF   THIS   ACT   UNTIL   DECEMBER   31,   2027   FOR   THE
MODERNIZATION    0F    PUBLIC    UTILITY    VEHICLES:    PROVIDED,
FURTHER,  THAT THE  EARMARKED  FUNDS  SHALL  REVERT  T0  THE
SPECIAL ACCOUNT IN THE GENERAL FUND EFFECTIVE JANUARY 1,
2028;
``(2)  TEN  PERCENT  (100/o)  FOR  GOVERNMENT  PROGRAMS  TO  BE
UNDERTAKEN   FOR   PREVENTION   OF   DEATHS   DUE   T0   ROAD
ACCIDENTS, AND ACCIDENT VICIIMS' ASSISTANCE, INCLUDING TIIE
FOLLONING:
(a) THE   IMPROVEMENT   0F   EXISTING   DRIVERS'   EDUCATION
PROGRAMS, TRAINING ACADEMIES AND DRIVERS' LICENSE
EXAMINATIONS BY THE LTO;
(b) THE   ESTABLISHMENT   0F   ADDITIONAL   MOTOR  VEHICLE
INSPECTION CENTERS BY THE LTO;
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(c) THE  IMPROvEMENT OF ROAD  MANAGEMEr`IT sysTEMs  By
THE DOTr;
(d) THII    PROVISION    0F    SUPPLEMENTAL    HOSPITALIZATION
COVERAGE    BY    THE    PHILIPPINE    HEALTH    INSURANCE
CORPORATION    (PHILHEALTH)    FOR    VICTIMS    0F    ROAD
ACCIDENTS;
(e) THE    PROVISION    BY    THE    EMPLOYEES'    COMPENSATION
COMMISSION OF WORKMEN'S COMPENSATION FOR VICTIMS
OF ROAD ACCIDENTS 1^7110 ARE UNABLE TO BE GAINFULLY
EMPLOYED FOR A CONTINUOUS PERIOD DUE TO DISABILITY,
PURSUANT TO THE PROVISIONS 0F REPUBLIC ACT NO. 772, AS
AMENDED, OR THE WORKMEN'S COMPENSATION ACT; AND
(f)  THE  ESTABLISHMENT  BY  TIIE  DEPARTMEI`IT  0F  HEALTII
(DOH)  OF  EMERGENCY  CARE  FACILITIES  IN  AREAS  THAT
HAVE HIGH INCIDENCE 0F ROAD ACCIDENTS.
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24           SEC. 6. I"pJcmc7Ift.#g RWJes ¢nd Rcgrihaft.ous. -The DOTr, in coordination with the
25      DOF,  the  DOH,  and  the  LTFRB,  shall  promulgate  the  mles  and  regulations  to
26      implement this Act within thirty (30) days from its effectivity.
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28           SEC.  7.  Rape¢Zt.#g  Cha#se.  -  All  laws,  orders,  issuances,  circulars,  rules  and
29      regulations or parts thereof, which are inconsistent with the provisions of this Act, are
30      hereby repealed or modified accordingly.
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1           SEC. 8. Scpartzb!.J{.fry chausc. -If any provision of this Act is declared uncoustitutional
2      or invalid, other parts or provisions hereof not affected thereby shall conthue to be in
3      fullforceandeffect.
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5           SEC. 9. £#ecf!.tJ..fry. -This Act shall take effect fifteen (15) days after its publication in
6      the official Gazette or in at least one (1) newspaper of general circulation.
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8          Approved,
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