EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
if n»» iK«ft*vr
• I f  
SEP 16 
P I :35
s. No. 1 0 4 9
Introduced by Senator Ralph G. Recto
AN ACT
CREATING 
THE 
SPECIAL 
MASS 
TRANSIT 
SYSTEM 
SUPPORT 
FUND 
AMENDING FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794f AS 
AMENDED
EXPLANATORY NOTE
There are approximately 96.47 million (90%) out of our 107.19 million1 
population who constitute the riding public. On the other hand, the total number of 
motor vehicles registered with the Land Transportation Office (LTO) in 2018 reached 
11.59 million, of which 970,470 (8%)2 are public utility vehicles.
Our nation's transport system relies heavily on the road network which handles 
roughly ninety percent (90%) of passenger movement and fifty percent (50%) of 
freight movement,3 serving priority production areas and population centers.
Since the passage of Republic Act No. 8794, also known as the "Motor Vehicle 
User's Charge (MVUC) Act" in June 2000, the road user's tax has been imposed on 
owners of all types of vehicles, whether for hire, for private or government use. 
Based on the 2019 Budget of Expenditures and Sources of Financing, the balance of 
the collections from Motor Vehicle User's Charge (MVUC) as of December 31, 2017 
amounts to P28.13 Billion while the estimated revenues for 2019 amounts to P13.93 
Billion.4
1 Popcom.gov.ph (accessed 15 July 2019)
2 Land Transportation Office. Annual Report 2018. (accessed 15 July 2019)
3 National Economic and Development Authority, NEDA MTPDP 2004-2010': C hapters: Infrastructure (2004)”
^ Department of Budget and Management, "Budget of Expenditures and Sources of Financing (Table B.15): Fiscal 
Year 2019"
1


The increase in number of motor vehicles has corollarily increased the MVUC 
collections. However, it has also made the traffic situation in our country worse. 
According to reports, Metro Manila may soon become "uninhabitable" if roads and 
other infrastructure are not upgraded immediately as the volume of vehicles sold is 
expected to surge to 500,000 by 2020.5
The cost of traffic in Metro Manila, quantified by wasted time, fuel and lost 
human productivity, was estimated at P3.5 billion a day in 2017 and projected to rise 
to as much as P5.4 billion daily by 2035.6
This measure seeks to amend the MVUC Act by realigning funds from the MVUC 
for the construction, improvement and rehabilitation of our mass transit system. 
While total elimination of traffic congestion would be challenging, persistent efforts 
to improve the country's mass transport systems would certainly be a factor in 
easing traffic and translate into benefits such as increase in productivity, cleaner 
environment and a healthier population.
The approval of this bill will address the need to provide efficient and effective 
mass transit system in our country. Expansion and improvement of mass transit has 
been proven to be cost-effective in developed countries since it addresses concerns 
on traffic and parking congestion, travel time, costs of road network, road safety, 
health and environment, excessive energy consumption and limited mobility for non­
drivers.
With the foregoing considered, the approval of this bill is hereby requested.
/m jm a
5 Richard Mercuric. "Traffic can make Metro Manila uninhabitable in 4 years"
httB:/ / www.philstar.com/headlines/2016/01/04/1539050/traffic-can-make-metro-manila-uninhabitable-4-vears 
(accessed 14 July 2019).
6 Partners in Nation Building. JICA Annual Report 2018. (accessed 14 July 2019).
2


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
19 
SEP 16 
P r - 3 * 1 2 3 4 5
s. No. 1049
Introduced by Senator Ralph G. Recto
AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND AMENDING 
FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS AMENDED
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. 
Short Title. — 
This Act shall be known as the "Special Mass
2 
Transit System Support Fund Act".
3 
Sec. 2. Disposition o f Monies Collected. — Section 7 of R.A. No. 8794, as
4 
amended, is hereby further amended to read as follows:
5 
"Sec. 7. Disposition o f Monies Collected.— All monies collected under this
7 
General Fund to bo] earmarked solely AND USED EXCLUSIVELY for the
8 
construction, 
[ upgrading, rcpaH7] IMPROVEMENT, and rehabilitation of
9 
[readST—bridges, 
and—read-  drainage] OUR MASS TRANSIT SYSTEM,
10 
INCLUDING THE ACQUISITION OF ROAD RIGHT-OF-WAY FOR SUCH
11 
PROJECTS to be included in the annual General Appropriations Act.
12 
ALL SUCH MONIES COLLECTED SHALL BE REMITTED TO THE
13 
NATIONAL TREASURY UNDER A SPECIAL ACCOUNT IN THE GENERAL
14 
FUND TO BE KNOWN AS THE SPECIAL MASS TRANSIT SYSTEM
15 
SUPPORT FUND. THE SAID FUND SHALL BE UNDER THE DEPARTMENT
16 
OF TRANSPORTATION (DOTR).
17 
Sec. 3. A new Section 8 is hereby inserted after Section 7 of the same Act to
18 
read as follows:
19 
"SEC. 8. THE SPECIAL FUND ESTABLISHED UNDER THIS ACT
20 
SHALL BE DISTINCT AND SEPARATE FROM AND IN ADDITION TO ANY
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1
APPROPRIATION AUTHORIZED AND GRANTED YEARLY TO THE DOTR 
TO 
COVER 
EXPENDITURES 
FOR THE 
IDENTIFIED 
OBJECTS 
OF 
EXPENDITURES UNDER THIS ACT. CONGRESS SHALL CONTINUE TO 
APPROPRIATE AN AMOUNT IN  THE GENERAL APPROPRIATIONS ACT 
FOR THE CONSTRUCTION, IMPROVEMENT AND REHABILITATION OF 
THE 
MASS 
TRANSIT 
SYSTEM 
UNDER 
THE 
DOTR: 
PROVIDED,
HOWEVER, THAT ANY SAVINGS FOR EACH YEAR OUT OF SUCH 
APPROPRIATION 
SHALL REVERT TO THE 
GENERAL 
FUND. 
ANY 
SAVINGS FROM THE SPECIAL FUND CREATED HEREIN SHALL ACCRUE 
TO THIS SPECIAL FUND."
Sec. 4. 
The succeeding sections of the same Act are hereby renumbered 
accordingly.
Sec. 5. Implementing Rules and Regulations. — The Department of Budget and 
Management, in coordination with the Bureau of the Treasury and the DOTr, shall 
within sixty (60) days from the effectivity of this Act, promulgate the rules and 
regulations to effectively implement the provisions of this Act.
Sec. 6. Separability Clause. — If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in force and effect.
Sec. 7. Repealing Clause. — Any law, presidential decree or issuance, executive 
order, letter of instruction, rule or regulation inconsistent with the provisions of this Act 
is hereby repealed or modified accordingly.
Sec. 8. Effectivity Clause. — This Act shall take effect after fifteen (15) days 
following its complete publication in the Official Gazette or in at least two (2) 
newspapers of general circulation.
Approved,