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Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEENTH (17") CONGRESS
First Regular Session

House BILL No. 4905

Introduced by Representative Manuel Monsour T. Del Rosario [I

EXPLANATORY NOTE

Tricycles play an important role in the community. They transport workers to their
workplaces, students to schools, market goers to the marketplace, and commuters to places not
plied by jeepneys and other common carriers. Their importance is particularly felt in many remote
barangays where they serve as the sole means of transportation.

Most tricycle drivers are low wage earners who earn a daily net income ranging from P100
to P200, barely enough to buy basic necessities. Considering their meager income, the rising cost
of basie provisions and the increasing outlays for maintenance and repair, spare parts and gasoline,
the income of tricycle operators and drivers needs to be augmented and their tax burden reduced.

The tricycle sector comprises an estimated one million units, excluding “colorums’.
Notwithstanding their vast number, the sector lies at the bottom of the totem pole of distinction
among public-transport groups largely because they are less vocal, less critical and less organized
as the more vociferous jeepney groups. As such, the plight of the tricycle sector has not reached a
critical level of public awareness.

Yet, despite being marginalized, tricycles contribute P300 per unit to the road users’ tax,
or P300 million a year, 80 percent of which goes to the repair of national roads. This is iniquitous
because tricycles are banned from using national roads, And even if allowed, their weights
certainly cannot damage these roads.

On the principle that taxes should, in return, benefit the taxpayer in the form of services,
the tricycle sector gets virtually nothing. It benefits partly from the five percent spent on local road
repair. Another 7.5 percent goes to traffic lights and signs, foot bridges, among others, benefiting
more motorists and commuters that use main roads. The balance of 7.5 percent goes to a Special
Vehicle Pollution Control Fund, which remains untapped.

The amount of Motor Vehicle User’s Charge (MVUC) exacted from a poor tricycle driver
slashes a big piece of the earning that could have fed his family for a day. In order to lessen their
financial burden, this bill seeks to amend the MVUC Act to exempt tricycles from its coverage.

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

EL MONSOUR T. DEL ROSARIO III


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17") CONGRESS
First Regular Session

HOUSE BILL No4905

Introduced by Representative Manuel Monsour T. Del Rosario III

AN ACT AMENDING SECTIONS 2 AND 3 (B) OF REPUBLIC ACT NO. 8794,
OTHERWISE KNOWN AS “AN ACT IMPOSING A MOTOR VEHICLE USER’S
CHARGE ON OWNERS OF ALL TYPES OF MOTOR VEHICLES AND FOR OTHER
PURPOSES”

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

Section 1. Section 2 of Republic Act No. 8794, otherwise known as “An Act Imposing a
Motor Vehicle User’s Charge on Owners of All Types of Motor Vehicles and for Other Purposes”,
is hereby amended to read as follows:

“Section 2. Coverage.- In lieu of the registration fee under section
8 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 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, EXCEPT MOTORCYCLES FOR HIRE
WITH SIDECAR USED AS A MEANS OF LIVELIHOOD.”

tion 2, Section 3(b) of Republic Act No. 8794 is hereby amended to read as follows:
“Section 3. Rates of the Motor Vehicle User's Charge. —
XXX

(b) Except as provided under 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 said base rates plus one hundred
percent (100%) in the fourth year from the effectivity of this Act
and their after: Provided, That the MVUC for the sports utility
vehicles shall be fifteen percent (!5%) 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 (300.00).]

Type of Vehicle

I, Private and Government

A. Passenger Cars

(1) GVW Up to 1,600 kgs.

(2) GVW more than 1,600 kgs. ~
2,300 kgs.

(3) GVW more than 2,300 kgs.

B, Utility Vehicles

GCW up to 2,700 kgs.
GVW more than

2,700 kgs. ~ 4,500 kgs.

C, Motorcycles

IL. For Hire

Without sidecar

[With side car

XXX

A. Passenger Cars

(1) GVW Up to 1,600 kgs.

(2) GVW more than 1,600 kgs. —
2,300 kgs.

(3) GVW more than 2,300 kgs.

B. Utility Vehicles

GCW up to 4,500 kgs.

C. Motorcycles

Without sidecar
[With side ear

XXX

Base Rates

P800
1,800

4,000

P1,000
1,000

+P20 per 100 kgs. of GCW over
2,700 kgs.

P120
150)

P450
900

2,500

P15 per 100 Kgs. OF GVW

PISO
240]

Seetion 3. Separability Clause. — If any provision or part of this Act, or the application
thereof to any person or circumstances, is held invalid or unconstitutional, the remaining sections
of this Act or the application of such provision or part hereof to other persons or circumstance shall
remain in full force and effect.


Section 4, Repealing Clause. — All laws, decrees, orders, issuances, rules and regulations
or parts thereof inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.

Section 5. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) newspapers of general circulation.

Approved,