Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
The enactment of Republic Act No. 8794 (RA 8794) in June 27, 2000 put in place the 
motor vehicle user’s charge (MVUC), a single law that provides for the annual motor 
vehicle registration fees by repealing the registration fee and the Private Motor Vehicle 
Tax. RA 8794 also increased the rates by 100% from the previous levels but the 
increase in the rates was done in four tranches from 2001 to 2004. 
With this, there calls a need to simplify the MVUC system by applying a single rate for 
all types of motor vehicles whether private, government, or for hire. This simplified 
MVUC system will ease the burden of administration and lowers cost of compliance. 
In addition, Section 3 of RA 8794 grants the President the authority to adjust annually 
the MVUC rates after the 4th year of its effectivity, however, the existing rates have 
not been adjusted since 2004.  
Therefore, the MVUC rate needs to incorporate the adjustment from the 2004 rate to 
ensure buoyancy of the revenues. The adjusted MVUC rate will serve as a sufficient 
source of fund for the infrastructure programs of the government. It is likewise 
proposed that various road funds will be merged with the general fund for efficiency 
and better linkages with budget.  
In light of the foregoing, passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 
July 22, 2022
4:34 pm
2270


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT  
AMENDING REPUBLIC ACT NO. 8794, ENTITLED "AN ACT 
IMPOSING A MOTOR VEHICLE USER'S CHARGE ON OWNERS 
OF ALL TYPES OF MOTOR VEHICLES AND FOR OTHER 
PURPOSES", AS AMENDED BY REPUBLIC ACT NO. 11239 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. This Act shall be known as the "Motor Vehicle Road User's Tax Act". 
SECTION 2. Section 2 of Republic Act No. 8794, as amended by Republic Act No. 
11239, is hereby amended to read as follows: 
"SEC. 2. Coverage. [In lieu of the registration fee 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.” 
SECTION 3. Section 3 of Republic Act No. 8794, as amended by Republic Act No. 
11239, is hereby amended to read as follows: 
"SEC. 3. [Rates of the Motor Vehicle User's Charge.] RATES OF 
MOTOR VEHICLE ROAD USER'S TAX. – [(a) TAX. — For private passenger 
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cars registered as of the date of effectivity of this Act, the MVUC to be paid shall 
be the private motor vehicle tax 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%) 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(b) 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 first year from the effectivity of this Act; the said 
base rates plus fifty percent (50%) in the second year 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%) 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 
 
 
 
Basic Rates 
 
I. Private and Government 
 
 
 
A. Passenger Cars 
 
(1) GVW up to 1,600 kgs.  
 
 
P800 
 
(2) GVW more than 1,600 kgs. – 2300 
 
1,800 
 
      kgs. 
 
(3) GVW more than 2,300 kgs. 
 
 
4,000 
 
 
B. Utility Vehicles 
 
GVW up to 2,700 kgs. 
 
 
 
P1,000 
 
GVW more than 2,700 kgs. – 4,500 kgs.  
P1,000 + P20 per 100 kgs. Of 
 
 
 
 
 
 
 
 
GVW over 2,700 kgs. 


 
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C. Motorcycles 
 
 
Without sidecar 
 
 
 
P120 
 
 
With sidecar  
 
 
 
   150 
 
 
D. Buses 
 
GVW more than 4,500 kgs. 
 
 
P900 + 12 per 100 kgs. 
 
 
 
 
 
 
 
 
of GVW over 2,700 kgs. 
 
 
E. Trucks 
 
GVW more than 4,500 kgs  
 
 
P900 + 12 per 100 kgs. 
 
 
 
 
 
 
 
 
of GVW over 2,700 kgs. 
 
F. Trailers 
GVW more than 4,500 kgs. 
 
 
P12 per 100 kgs. of GVW 
 
II. For Hire 
 
A. Passenger Cars 
(1) GVW up to 1,600 kgs.  
 
 
P450 
(2) GVW more than 1,600 kgs. – 2,300 kgs. 
  900 
(3) GVW more than 2,300 kgs. 
 
 
2,500 
 
B. Utility Vehicles 
GVW up to 4,500 kgs 
 
 
 
P15 per 100 kgs. 
 
 
 
 
 
 
 
of GVW 
 
C. Motorcycles 
 
without sidecar 
 
 
 
P150 
 
with sidecar  
 
 
 
   240 
 
D. Buses 
GVW more than 4,500 kgs. 
 
 
P15 per 100 kgs. of GVW 
 


 
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E. Trucks 
GVW more than 4,500 kgs. 
 
 
P900 + P12 per 100 kgs. 
 
 
 
 
 
 
 
of GVW over 2,700 kgs. 
 
F. Trailers 
GVW more than 4,500 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.] 
 
 
"THERE SHALL BE LEVIED, ASSESSED, AND COLLECTED ON 
REGISTERED PRIVATE AND GOVERNMENT VEHICLES, A MOTOR 
VEHICLE ROAD USER'S TAX WHICH SHALL BE COLLECTED FROM AND 
PAID BY THE OWNER OF THE MOTOR VEHICLE IN ACCORDANCE WITH 
THE FOLLOWING SCHEDULE: 
 
TYPE OF VEHICLE 
  
2022 
2023 
2024 
2025 
ONWARDS 
PRIVATE AND GOVERNMENT 
A. PASSENGER CARS 
GROSS VEHICLE 
WEIGHT (GVW) UP 
TO 1,600 
KILOGRAMS (KG) 
2,080  
     2,560  
     3,040  
5% 
INCREASE 
GVW MORE THAN 
1,600 KG UP TO 2,300 
KG 
     
4,680.00  
     
5,760.00  
     
6,840.00  
GVW MORE THAN 
2,300 KG 
   
10,400.00  
   
12,800.00  
   
15,200.00  


 
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B1. UTILITY VEHICLES 
GVW UP TO 4,500 KG 
1.40 PER 
KG OF 
GVW 
2.50 PER 
KG OF 
GVW 
3.40 PER 
KG OF 
GVW 
5% 
INCREASE 
B2. SPORTS UTILITY VEHICLES 
GVW UP TO 4,500 KG 
1.40 PER 
KG OF 
GVW 
2.50 PER 
KG OF 
GVW 
3.40 PER 
KG OF 
GVW 
5% 
INCREASE 
C. MOTORCYCLES 
WITHOUT SIDECAR 
0 
0 
0 
0 
WITH SIDECAR 
0 
0 
0 
0 
D. BUSES 
GVW UP TO 4,500 KG 
1.40 PER 
KG OF 
GVW 
2.50 PER 
KG OF 
GVW 
3.40 PER 
KG OF 
GVW 
5% 
INCREASE 
E. TRUCKS 
GVW UP TO 4,500 KG 
1.40 PER 
KG OF 
GVW 
2.50 PER 
KG OF 
GVW 
3.40 PER 
KG OF 
GVW 
5% 
INCREASE 
F. TRAILERS 
GVW UP TO 4,500 KG 
1.40 PER 
KG OF 
GVW 
2.50 PER 
KG OF 
GVW 
3.40 PER 
KG OF 
GVW 
5% 
INCREASE 
 
"PROVIDED, THAT FOR HIRE VEHICLES SHALL BE SUBJECT TO 
FIFTY PERCENT (50%) OF THE ABOVE TAX RATES: PROVIDED, 
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 OF THE PRECEDING YEAR SHALL 
BE APPLIED. 
 
"PROVIDED, FURTHER, THAT THE RATES OF MOTOR VEHICLE 
ROAD USER'S TAX SHALL BE INCREASED BY FIVE PERCENT (5%) 


 
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ANNUALLY EFFECTIVE JANUARY 1, 2025 THROUGH REVENUE 
REGULATIONS TO BE ISSUED BY THE SECRETARY OF FINANCE. 
 
"AS USED IN THIS SECTION — 
 
"(A) MOTOR VEHICLE SHALL MEAN ANY VEHICLE PROPELLED 
BY ANY POWER OTHER THAN MUSCULAR POWER USING PUBLIC 
HIGHWAYS BUT EXCEPTING AIRCRAFTS, MOTOR BOATS, ROAD 
ROLLERS, TROLLEY CARS, STREET SWEEPERS, SPRINKLERS, LAWN 
MOWERS, BULLDOZERS, GRADERS, FORKLIFTS, AMPHIBIAN TRUCKS, 
AND CRANES NOT USED IN PUBLIC HIGHWAYS, VEHICLES WHICH RUN 
ONLY ON RAILS OR TRACKS, TRACTORS AND TRAILERS, AND 
TRACTION ENGINES OF ALL KINDS USED EXCLUSIVELY FOR 
AGRICULTURAL PURPOSES. 
 
"TRAILERS 
HAVING 
ANY 
NUMBER 
OF 
WHEELS, 
WHEN 
PROPELLED OR INTENDED TO BE PROPELLED BY ATTACHMENT TO A 
MOTOR VEHICLE SHALL BE CLASSIFIED AS SEPARATE MOTOR 
VEHICLE WITH NO POWER RATING. 
 
"(B) GROSS VEHICLE WEIGHT SHALL MEAN THE MEASURED 
WEIGHT 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 OF THE LAND TRANSPORTATION OFFICE 
(LTO). 
 
SECTION 4. Section 4 of Republic Act No. 8794, as amended by Republic Act No. 
11239, is hereby amended to read as follows: 
 
 
"[SEC. 4. GOVERNMENT 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 


 
8
government motor vehicles shall be in accordance with the procedure 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 PAID TO THE LTO ANNUALLY UPON 
REGISTRATION, CONFORMABLY WITH THE REGULATIONS ISSUED 
JOINTLY BY THE DEPARTMENT OF FINANCE (DOF) AND DEPARTMENT 
OF TRANSPORTATION (DOTr). 
"(B) MANNER OF COLLECTION OF REVENUES. — THE MOTOR 
VEHICLE ROAD USER'S TAX SHALL BE COLLECTED BY THE LTO AS 
PART OF THE ANNUAL VEHICLE REGISTRATION IN ACCORDANCE 
WITH THE RATES SET FORTH IN SECTION 3 HEREOF. THE DATES OF 
ANNUAL REGISTRATION OF MOTOR VEHICLES SHALL BE BASED ON 
THE REGISTRATION SCHEME PROVIDED BY THE LTO. 
"(C) EFFECT OF FAILURE TO PAY MOTOR VEHICLE ROAD USER'S 
TAX. - ANY REGISTRATION OF MOTOR VEHICLES NOT RENEWED ON 
OR BEFORE THE DATE FIXED BY THE LTO SHALL BE CONSIDERED 
DELINQUENT AND INVALID." 
 
SECTION 5. Section 7 of Republic Act No. 8794, as amended by Republic Act No. 
11239, is hereby further amended to read as follows: 
"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 
annual General Appropriations Act [.]: PROVIDED, THAT FIFTY PERCENT 
(50%) OF THE INCREMENTAL REVENUES COLLECTED UNDER THIS ACT 
SHALL BE ALLOCATED AND USED EXCLUSIVELY FOR THEFOLLOWING 
PURPOSES: 
"(1) FORTY-FIVE PERCENT (45%) FOR THE MODERNIZATION OF 
PUBLIC UTILITY VEHICLES, PARTICULARLY FOR THE EQUITY SUBSIDY 
OF PUBLIC TRANSPORT OPERATORS CONSOLIDATED AS TRANSPORT 
COOPERATIVES FOR THE ACQUISITION OF EURO-4 COMPLIANT 
PUBLIC UTILITY VEHICLES PLYING AUTHORIZED ROUTES AS 


 
9
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, 2024 FOR THE 
MODERNIZATION OF PUBLIC UTILITY VEHICLES: PROVIDED, FURTHER, 
THAT THE EARMARKED FUNDS SHALL REVERT TO THE SPECIAL 20 
ACCOUNT IN THE GENERAL FUND EFFECTIVE JANUARY 1, 2025; 
"(2) FIVE PERCENT (5%) FOR GOVERNMENT PROGRAMS TO BE 
UNDERTAKEN FOR PREVENTION OF 24 DEATHS DUE TO ROAD 
ACCIDENTS, AND ACCIDENT 25 VICTIMS' ASSISTANCE, INCLUDING THE 
FOLLOWING: 
(a) THE IMPROVEMENT OF EXISTING DRIVERS' EDUCATION 
PROGRAMS, 
TRAINING 
ACADEMIES 
AND 
DRIVERS' 
LICENSE 
EXAMINATIONS BY THE LTO;  
(b) THE ESTABLISHMENT OF ADDITIONAL MOTOR VEHICLE 
INSPECTION CENTERS BY THE LTO; 
(c) THE IMPROVEMENT OF ROAD MANAGEMENT SYSTEMS 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 
COMMISS10N OF WORKMEN'S COMPENSATION FOR VICTIMS OF ROAD 
ACCIDENTS WHO ARE UNABLE TO BE GAINFULLY EMPLOYED FOR A 
CONTINUOUS PERIOD DUE TO DISABILITY, PURSUANT TO THE 
PROVISIONS OF REPUBLIC ACT No. 772, AS AMENDED, OR THE 
WORKMEN'S COMPENSATION ACT; 
(F) THE ESTABLISHMENT BY THE DEPARTMENT OF HEALTH 
(DOH) OF EMERGENCY CARE FACILITIES IN AREAS THAT HAVE HIGH 
INCIDENCE OF ROAD ACCIDENTS." 
 
SECTION 6. Implementing Rules and Regulations. — The DOTr, in coordination 
with the DOF, DOH, and the LTFRB, shall promulgate the rules and regulations to 
implement this Act within thirty (30) days from its effectivity. 


 
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SECTION 7. Repealing Clause. — All laws, orders, issuances, circulars, rules and 
regulations or parts thereof, which are inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly. 
 
SECTION 8. Separability Clause. — If any provision of this Act is declared 
unconstitutional or invalid, other parts or provisions hereof not affected thereby shall 
continue to be in full force and effect. 
 
SECTION 9. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least one (1) newspaper of general 
circulation. 
 
Approved,