Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

3716

HOUSE BILL NO.

Introduced by TOBIAS REYNALD M. TIANGCO and JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

This bill seeks to amend Republic Act No. 8794 otherwise known as the
Motor Vehicle User's Charge or more commonly known as the Road User's Tax. R.A.
8794 is applicable to owners of all types of vehicles, whether for hire or for private
and even for government use.

The money collected shall be deposited to four trust accounts in the national
treasury namely, road support (road maintenance and improvement of road
drainage), local road funds, vehicle pollution control funds and road safety funds
(installation of traffic lights and other safety devices).

This bill seeks to amend R.A. 8794 by exempting motorcycles with sidecar
("tricycle") from the coverage of the road user's tax to lessen the financial burden of
tricycle drivers. The average amount earned by tricycle drivers of PhP150 to PhP200
daily is not adequate to sustain the family's basic needs. The additional motor
user’s vehicle charge is an additional burden which they can hardly afford
considering their meager earnings. Their exemption from the payment of the road
user's charge will help uplift their living condition.

Further, considering that the motor vehicle user’s charge is earmarked
primarily for the maintenance of national roads, these tricycle drivers hardly benefit
from the same as they are not allowed on national roads, and instead, ply side
streets.

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

SS

JOSEPH VICTOR G. EJERCITO



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session
3716
HOUSE BILL NO.

Introduced by TOBIAS REYNALD M. TIANGCO and JOSEPH VICTOR G. EJERCITO

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 the 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.

SECTION 2. Section 3 (b) of RA No. 8794 is hereby amended to read as follows:

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 (300.00).

Type of Vehicle
|, Private and Government

A. Passenger Cars
1. GVW upto 1,600 kgs.

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

3. GVW more than 2,300 kgs.

8. Utility Vehicles
1. GVW up to 2,700 kgs.

2. GVW more than 2,700 kgs.-4,500 kgs.

C. Motorcycles
1. without sidecar
2.[with sidecar

D. Buses
GVW more than 4,500 kgs.
kgs. of GVW over 2,700 kgs.

E. Trucks
GVW more than 4,500 kgs.

F. Trailers
GVW more than 4,500 kgs

U. For Hire
‘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
1. GVW up to 2,700 kgs.

C. Motorcycles
1. without sidecar

Base Rates

PhP 800
PhP 1,800
PhP 4,000

PhP 1,000
PhP 1,000 + PhP 20 per
100 kgs. of GVW over
2,700 kgs.

PhP 120
PhP 150)

PhP 900 + PhP 12 per 100
kgs. of GVW over 2,700
kgs

PhP 900 + PhP 12 per 100
kgs. of GVW over 2,700
kgs

PhP 12 per 100 kgs. of
GVW

PhP 450
PhP 900
PhP 2,500

PhP 15 per 100
kgs. of GVW

PhP 150


2.[with sidecar PhP 240]

D. Buses

GVW more than 4,500 kgs. PhP 15 per 100 kgs. of
Gvw

E. Trucks

GVW more than 4,500 kgs. PhP 900 + PhP 12 per
100 kgs. of GVW over
2,700 kgs

F. Trailers

GVW more than 4,500 kgs GVW PhP 12 per 100
kgs. of GVW

SECTION 2. Separability Clause - If any provision or part hereof is held invalid
or unconstitutional, the remainder of the law or the provision not otherwise
affected shall remain valid and subsisting.

SECTION 3. Repealing Clause - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with the provision of this act is hereby repealed,
modified or amended accordingly.

SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days from
the date of its complete publication in the Official Gazette or in at least two
(2) newspapers of general circulation.

Approved,