CONGRESS OF THE PHILIPPINES

NINETEENTH CONGRESS
Second Regular Session
}
HOUSE OF REPRESENTATIVES

H. No. 9647

BY REPRESENTATIVES SALCEDA, CO (E.), VILLAFUERTE (L.R.), VILLAFUERTE (M.L.), HORIBATA, ENCISO,

BARBA, GUTIERREZ, CUA, TAMBUNTING, TULFO (R.W.), TULFO (J.), TULFO (E.), YAP (EDVIC),
YAP (ERIC), VIOLAGO, SUANSING (M.A.), DIONISIO, HARESCO, LAGON (S.), TY, DAYANGHIRANG,
MACAPAGAL-ARROYO, SINGSON-MEEHAN, FERRER (J.M.), VALMAYOR, BERNOS, CAGAS,
VARGAS-ALFONSO, ORDANES, LUISTRO, CRUZ (A.), CAJAYON-UY, TARRIELA, BASCUG, SUAN,
DAGOOC, LEE, VERZOSA, PALMA, ALVAREZ (J.), SALO, LOYOLA, REYES, CAMPOS, COLLANTES,
SILVERIO, PADIERNOS, FUENTEBELLA, CUARESMA, AQUINO-MAGSAYSAY, PLEYTO, ANG,
MARIANO-HERNANDEZ, ROBES, RODRIGUEZ (R.), SUANSING (H.), GORRICETA, LACSON-NOEL,
CHUNGALAO, SALIMBANGON, CALDERON, TEVES, PANOTES, BOLILIA, GONZALEZ, UNGAB,
TAN (S.J.), TAN (R.M.), NOEL, QUIMBO, GONZALES (A.), SINGSON (R.V.), DEL MAR, LARA,
CABREDO, BONGALON, MOMO, TAN (J.), CRUZ (R.), MATIBAG, CHATTO, MACEDA, FRESNEDI,
ADIONG, DY (F.M.C.), PANALIGAN, DIMAPORO (S.A.), ALBA, DOMINGO, EMANO, FLORES,
MARIÑO, MIGUEL, ESPARES, GARCIA (D.), ALBANO, GARIN, DELOS SANTOS, DAZA, DALIPE,
TAN-TAMBUT, ROMUALDO, ESPINA, CO-PILAR, BAUTISTA-LIM, GARCIA (P.J.), CHAN, CARI,
ACHARON, DY (F.) AND BULUT-BEGTANG

AN ACT
RENAMING MOTOR VEHICLE USER’S CHARGE INTO MOTOR VEHICLE
ROAD USER’S TAX AND INCREASING THE RATES FOR PUBLIC UTILITY
VEHICLE MODERNIZATION AND ROAD SAFETY PROGRAMS, AMENDING FOR
THIS PURPOSE 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:

1 SECTION 1. Section 2 of Republic Act No. 8794, as amended by Republic Act No. 11239,
2 is hereby amended to read as follows:
1 “SEC. 2. Coverage. – [In lieu of the registration fee under Section 8 of
2 Republic Act No. 4136, as amended by Batas Pambansa Bilang 74, and the Private
3 Motor Vehicle Tax under Executive Order No. 43, series of 1986, there is hereby]
4 THE MOTOR VEHICLE ROAD USER’S TAX SHALL BE imposed on every
5 motor vehicle, whether for hire or for private use, including government motor
6 vehicles as [more fully] provided in Section 3 hereof [a Motor Vehicle User’s
7 Charge (MVUC)], which shall be collected from and paid by the owner of the
8 motor vehicle.”
9
10 SEC. 2. Section 3 of Republic Act No. 8794, as amended by Republic Act No. 11239, is
11 hereby amended to read as follows:
12
13 “SEC. 3. [Rates of the Motor Vehicle User’s Charge. –] RATES OF
14 MOTOR VEHICLE ROAD USER’S TAX. – [(a) For private passenger cars
15 registered as of the date of the effectivity of this Act, the MVUC to be paid shall
16 be the private motor vehicle tax under Executive Order No. 43, series of 1986,
17 plus twenty-five percent (25%) for the first year, fifty percent (50%) for the second
18 year, seventy-five percent (75%) for the third year, and one hundred percent
19 (100%) for the fourth year and thereafter: Provided, however, That private
20 passenger cars to be registered for the first time after the effectivity of this Act,
21 shall be subject to the MVUC rates prescribed in Section 3(b) hereof.]
22
23 [“(b) Except as provided under Section 3(a) hereof, for each motor vehicle
24 under each of the categories as herein provided, the MVUC shall be collected from
25 and paid by the vehicle owner, at the following base rates plus twenty-five percent
26 (25%) in the first year from the effectivity of this Act; the said base rates plus fifty
27 percent (50%) in the second year from the effectivity of this Act; the said base
28 rates plus seventy-five percent (75%) in the third year from the effectivity of this
29 Act; and the said base rates plus one hundred percent (100%) in the fourth year
30 from the effectivity of this Act and thereafter: Provided, That the MVUC for
31 sports utility vehicles shall be fifteen percent (15%) higher than the MVUC herein

2
 1 set for private utility vehicles: Provided, further, That motorcycles for hire with
2 sidecars shall not pay more than Three-hundred pesos (P300).]
3
4 [ Type of Vehicle Base Rates
5
6 (I) Private and Government
7
7
8
8 (A) Passenger Cars
9
9
10
10 (1) GVW up to 1,600 kgs. P800
10
11
11
11
12
12 (2) GVW more than 1,600 kgs. – 1,800
12
13
13 2,300 kgs.
13
14
14
14
15
15 (3) GVW more than 2,300 kgs. 4,000
15
16
16
16
17
17 (B) Utility Vehicles
17
18
18
19
18 GVW up to 2,700 kgs. P1,000
19
20
20
19
20
21
21
20 GVW more than P1,000 + P20
21
22
22
21
22
23
23
23
22 2,700 kgs. – 4,500 kgs. per 100 kgs. of GVW
24
24
24
25
23 over 2,700 kgs.
25
26
25
24
27
26
26 (C) Motorcycles
25
28
27
27
26
29
28 without sidecar P120
28
27
30
29
29
28
31 with side car 150
30
30
32
29
31
31
33
30 (D) Buses
34
31
35 GVW more than 4,500 kgs. P900+P12 per 100
36 kgs. of GVW over
37
2,700 kgs.

3
1 (E) Trucks
2
3 GVW more than 4,500 kgs P900+P12 per 100
4 kgs. of GVW over
5 2,700 kgs.
6
7 (F) Trailers
8
9 GVW more than 4,500 kgs. P12 per 100 kgs.
10 of GVW
11
12 (II) For Hire
13
14 (A) Passenger Cars
15
16 (1) GVW up to 1,600 kgs. P450
17
18 (2) GVW more than 1,600 900
19 kgs. –2,300 kgs.
20
21 (3) GVW more than 2,500
22 2,300 kgs.
23
24 (B) Utility Vehicles
25
26 GVW up to 4,500 kgs. P15 per 100 kgs.
27 of GVW
28
29 (C) Motorcycles
30
31 without sidecar P150
32
33 with side car 240

4
1 (D) Buses
2
3 GVW more than 4,500 kgs. P15 per 100 kgs.
4 of GVW
5
6
7 (E) Trucks
8
9 GVW more than 4,500 kgs P900+P12 per
10 100 kgs. of GVW
11 over 2,700 kgs.
12
13 (F) Trailers
14
15 GVW more than 4,500 kgs. P12 per 100 kgs.
16 of GVW ]
17
18
18 [After the fourth year from the effectivity of this Act, the President of the
19
19 Philippines may adjust the rates contained in Section 3 which shall be reflective
20
20 of but shall not exceed the annual rate of increase of the Consumer Price
21 Index (CPI). The President may adjust such rates not more than once every
22 five (5) years.]
23
24 “THERE SHALL BE LEVIED, ASSESSED, AND COLLECTED ON
25 REGISTERED PRIVATE AND GOVERNMENT VEHICLES, A MOTOR
26 VEHICLE ROAD USER’S TAX WHICH SHALL BE COLLECTED FROM
27
27 AND PAID BY THE OWNER OF THE MOTOR VEHICLE IN
28
28 ACCORDANCE WITH THE FOLLOWING SCHEDULE:

5
 TYPE OF VEHICLE 2027
2024 2025 2026
ONWARDS
PRIVATE AND GOVERNMENT
A. PASSENGER CARS AND MOTORCYCLES WITH ENGINE
DISPLACEMENT OF 400CC AND ABOVE:
GROSS VEHICLE
WEIGHT (GVW)
2,080 2,560 3,040
UP TO 1,600
KILOGRAMS (KG)
5%
GVW MORE THAN
INCREASE
1,600 KG UP TO 4,680 5,760 6,840
2,300 KG

GVW MORE THAN

10,400 12,800 15,200
2,300 KG

B1. UTILITY VEHICLES

1.40 PER 2.50 PER 3.40 PER

5%
GVW UP TO 4,500 KG KG OF KG OF KG OF
INCREASE
GVW GVW GVW

B2. SPORTS UTILITY VEHICLES

1.40 PER 2.50 PER 3.40 PER

5%
GVW UP TO 4,500 KG KG OF KG OF KG OF
INCREASE
GVW GVW GVW

C. MOTORCYCLES

WITHOUT SIDECAR 0 0 0 0

WITH SIDECAR 0 0 0 0

6
 TYPE OF VEHICLE 2027
2024 2025 2026
ONWARDS

D. BUSES

1.40 PER 2.50 PER 3.40 PER

5%
GVW ABOVE 4,500 KG KG OF KG OF KG OF
INCREASE
GVW GVW GVW

E. TRUCKS

1.40 PER 2.50 PER 3.40 PER

5%
GVW ABOVE 4,500 KG KG OF KG OF KG OF
INCREASE
GVW GVW GVW

F. TRAILERS

1.40 PER 2.50 PER 3.40 PER

5%
GVW ABOVE 4,500 KG KG OF KG OF KG OF
INCREASE
GVW GVW GVW

1 “PROVIDED, THAT A PUBLIC UTILITY BUS OR JEEPNEY

2 SHALL ENJOY 50% DISCOUNT FROM THE ABOVE TAX RATES:
3 PROVIDED, HOWEVER, THAT THE RATES OF MOTOR VEHICLE
4 ROAD USER’S TAX SHALL BE INCREASED BY FIVE PERCENT (5%)
5 EVERY YEAR EFFECTIVE ON JANUARY 1, 2027 THROUGH
6 REVENUE REGULATIONS ISSUED BY THE SECRETARY OF
7 FINANCE.

7
1 “AS USED IN THIS SECTION –
2
3 “(A) MOTOR VEHICLE SHALL MEAN ANY VEHICLE
4 PROPELLED BY ANY POWER OTHER THAN MUSCULAR POWER
5 USING THE PUBLIC HIGHWAYS BUT EXCEPTING AIRCRAFT,
6 MOTOR BOATS, ROAD ROLLERS, TROLLEY CARS, STREET
7 SWEEPERS, SPRINKLERS, LAWN MOWERS, BULLDOZERS,
8 GRADERS, FORK LIFTS, AMPHIBIAN TRUCKS, CRANES NOT
9 USED IN PUBLIC HIGHWAYS, VEHICLES WHICH RUN ONLY ON
10 RAILS OR TRACKS, AND TRACTORS, TRAILERS, AND
11 TRACTION ENGINES OF ALL KINDS USED EXCLUSIVELY FOR
12 AGRICULTURAL PURPOSES.
13
14 “TRAILERS HAVING ANY NUMBER OF WHEELS, WHEN
15 PROPELLED OR INTENDED TO BE PROPELLED BY ATTACHMENT
16 TO A MOTOR VEHICLE SHALL BE CLASSIFIED AS SEPARATE
17 MOTOR VEHICLE WITH NO POWER RATING.
18
19 “(B) GROSS VEHICLE WEIGHT SHALL MEAN THE
20 MEASURED WEIGHT OF A MOTOR VEHICLE AS SPECIFIED BY THE
21 MANUFACTURER PLUS THE MAXIMUM ALLOWABLE CARRYING
22 CAPACITY IN MERCHANDISE, FREIGHT, OR PASSENGER AS
23 DETERMINED BY THE ASSISTANT SECRETARY OF THE LAND
24 TRANSPORTATION OFFICE (LTO).”
25
26 SEC. 3. Section 4 of Republic Act No. 8794, as amended by Republic Act No. 11239, is
27 hereby amended to read as follows:
28
29 “SEC. 4. [Government Motor Vehicles] PAYMENT OF MOTOR
30 VEHICLE ROAD USER’S TAX. – The manner of payment of the [user’s
31 charge] MOTOR VEHICLE ROAD USER’S TAX on government motor
32 vehicles shall be in accordance with the procedure that shall be promulgated by
33 the Secretary of the Department of Budget and Management (DBM)[.]:

8
1 “(A) MANNER OF PAYMENT – THE MOTOR VEHICLE ROAD
2 USER’S TAX SHALL BE PAID TO THE LTO ANNUALLY UPON
3 REGISTRATION, CONFORMABLY WITH THE REGULATIONS
4 ISSUED JOINTLY BY THE DEPARTMENT OF FINANCE (DOF) AND
5 THE DEPARTMENT OF TRANSPORTATION (DOTr).
6
7 “(B) MANNER OF COLLECTION OF REVENUES – THE MOTOR
8 VEHICLE ROAD USER’S TAX SHALL BE COLLECTED BY THE LTO
9 AS PART OF THE ANNUAL VEHICLE REGISTRATION IN
10 ACCORDANCE WITH THE RATES SET FORTH IN SECTION 3
11 HEREOF. THE DATES OF ANNUAL REGISTRATION OF MOTOR
12 VEHICLES SHALL BE BASED ON THE REGISTRATION SCHEME
13 PROVIDED BY THE LTO.
14
15 “(C) EFFECT OF FAILURE TO PAY MOTOR VEHICLE ROAD
16 USER’S TAX – ANY REGISTRATION OF MOTOR VEHICLES NOT
17 RENEWED ON OR BEFORE THE DATE FIXED BY THE LTO SHALL
18 BE CONSIDERED DELINQUENT AND INVALID.”
19
20 SEC. 4. Section 7 of Republic Act No. 8794, as amended by Republic Act No. 11239, is
21 hereby further amended to read as follows:
22
23 “SEC. 7. Disposition of Monies Collected. – All monies collected under
24 this Act shall be remitted to the National Treasury under a special account in the
25 General Fund [to be earmarked solely] for the construction, upgrading, repair and
26 rehabilitation of roads, bridges, and road drainage [to be included in the annual
27 General Appropriations Act.]: PROVIDED, THAT THE FUND
28 ESTABLISHED UNDER THIS ACT SHALL BE DISTINCT AND
29 SEPARATE FROM AND IN ADDITION TO ANY APPROPRIATION
30 AUTHORIZED AND GRANTED ANNUALLY TO THE DEPARTMENT
31 OF PUBLIC WORKS AND HIGHWAYS: PROVIDED, FURTHER, THAT

9
1 FIFTY PERCENT (50%) OF THE INCREMENTAL REVENUES
2 COLLECTED UNDER THIS ACT SHALL BE ALLOCATED AND USED
3 EXCLUSIVELY FOR THE FOLLOWING PURPOSES:
4
5 “(1) FORTY-FIVE PERCENT (45%) FOR THE
6 MODERNIZATION OF PUBLIC UTILITY VEHICLES,
7 PARTICULARLY FOR THE EQUITY SUBSIDY OF PUBLIC
8 TRANSPORT OPERATORS CONSOLIDATED AS TRANSPORT
9 COOPERATIVES FOR THE ACQUISITION OF EURO-4 COMPLIANT
10 PUBLIC UTILITY VEHICLES PLYING AUTHORIZED ROUTES AS
11 DETERMINED BY THE DOTr AND THE LAND TRANSPORTATION
12 FRANCHISING AND REGULATORY BOARD (LTFRB): PROVIDED,
13 THAT SAID INCREMENTAL REVENUES SHALL BE EARMARKED
14 UPON APPROVAL OF THIS ACT UNTIL DECEMBER 31, 2028 FOR
15 THE MODERNIZATION OF PUBLIC UTILITY VEHICLES: PROVIDED,
16 FURTHER, THAT THE EARMARKED FUNDS SHALL REVERT TO
17 THE SPECIAL ACCOUNT IN THE GENERAL FUND EFFECTIVE
18 JANUARY 1, 2029;
19
20 “(2) FIVE PERCENT (5%) FOR GOVERNMENT PROGRAMS TO
21 BE UNDERTAKEN FOR PREVENTION OF DEATHS DUE TO ROAD
22 CRASH, AND ACCIDENT VICTIMS’ ASSISTANCE, INCLUDING THE
23 FOLLOWING:
24
25 “(A) THE IMPROVEMENT OF EXISTING DRIVERS’
26 EDUCATION PROGRAMS, TRAINING ACADEMIES AND DRIVERS’
27 LICENSE EXAMINATIONS BY THE LTO;
28
29 “(B) THE ESTABLISHMENT OF ADDITIONAL MOTOR
30 VEHICLE INSPECTION CENTERS BY THE LTO;
31
32 “(C) THE IMPROVEMENT OF ROAD MANAGEMENT

10
1 SYSTEMS BY THE DOTr;
2 “(D) THE PROVISION OF SUPPLEMENTAL
3 HOSPITALIZATION COVERAGE BY THE PHILIPPINE HEALTH
4 INSURANCE CORPORATION (PHILHEALTH) FOR VICTIMS OF
5 ROAD CRASH;
6
7 “(E) THE PROVISION BY THE EMPLOYEES’ COMPENSATION
8 COMMISSION OF WORKMEN’S COMPENSATION FOR VICTIMS OF
9 ROAD CRASH WHO ARE UNABLE TO BE GAINFULLY EMPLOYED
10 FOR A CONTINUOUS PERIOD DUE TO DISABILITY, PURSUANT TO
11 THE PROVISIONS OF REPUBLIC ACT NO. 772, AS AMENDED
12 OTHERWISE KNOWN AS THE WORKMEN’S COMPENSATION
13 ACT; AND
14
15 “(F) THE ESTABLISHMENT BY THE DEPARTMENT OF
16 HEALTH (DOH) OF EMERGENCY CARE FACILITIES IN AREAS
17 THAT HAVE HIGH INCIDENCE OF ROAD ACCIDENTS.”
18
19 SEC. 5. Implementing Rules and Regulations. – The DOTr, in coordination with the DOF,
20 the DOH, the LTFRB and the Department of Public Works and Highways, shall promulgate the
21 rules and regulations to implement this Act within thirty (30) days from its effectivity.
22
23 SEC. 6. Separability Clause. – If any provision of this Act is declared unconstitutional or
24 invalid, other parts or provision hereof not affected thereby shall continue to be in full force
25 and effect.
26
27 SEC. 7. Repealing Clause. – All laws, orders, issuances, circulars, rules and regulation or
28 parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or modified
29 accordingly.
30
31 SEC. 8. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the
32 Official Gazette or in at least one (1) newspaper of general circulation.

11
Approved,

12