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REPUBLIC OF THE PHILIPPINES
CONGRESS OF THE PHILIPPINES H. No. 6863
Second Regular Session S. No. 1830

REPUBLIC ACT NO. 8794

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. Declaration of Policy. – It is hereby declared
as the policy of the State to provide for and ensure the adequate
maintenance of national and provincial roads through sufficient
funding for the purpose.

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 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.

SEC. 3. Rates of the Motor Vehicle User's Charge. – (a)

For private passenger 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

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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 Base Rates

I. Private and Government

A. Passenger Cars
(1) GVW up to 1,600 kgs. P 800
(2) GVW more than 1,600 kgs.-2,300 kgs. 1,800
(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.

C. Motorcycles
without sidecar P 120
with sidecar 150

D. Buses
GVW more than 4,500 kgs. P900 + P12
per 100 kgs.
of GVW over
2,700 kgs.

E. Trucks
GVW more than 4,500 kgs. P900 + P12
per 100 kgs.
of GVW over
2,700 kgs.
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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. P 450
(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

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.

SEC. 4. Government Motor Vehicles. – The manner of

payment of the user's charge on government motor vehicles shall
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be in accordance with the procedure that shall be promulgated by

the Secretary of the Department of Budget and Management
(DBM).

SEC. 5. Reclassification and New Models of Motor

Vehicles. – The Land Transportation Office (LTO) shall submit
any recommendation for any change in the classification of motor
vehicles above-listed for approval by the Secretary of the
Department of Transportation and Communications (DOTC). All
manufacturers and/or assemblers of motor vehicles shall, not later
than three (3) months prior to the introduction of any new model
of motor vehicle in the market, submit the specifications of such
new model to the LTO which shall recommend for approval by
the said secretary, the proper classification of the new model and
the rate of the MVUC under which the new model shall fall. The
LTO shall also release the proper classification of said new motor
vehicle model on or before the scheduled release of such new model
to the market, but in no case later than three (3) months after its
receipt of the new motor vehicle's specifications.

SEC. 6. Penalty for Overloading. – An amount equivalent

to twenty-five percent (25%) of the MVUC shall be imposed on
trucks and trailers for loading beyond their prescribed gross vehicle
weight: Provided, That no axle load shall exceed thirteen
thousand five hundred kilograms (13,500 kgs.).

SEC. 7. Disposition of Monies Collected. – All monies

collected under this Act shall be earmarked solely and used
exclusively (1) for road maintenance and the improvement of road
drainage, (2) for the installation of adequate and efficient traffic
lights and road safety devices, and (3) for air pollution control.

All such monies collected shall be deposited in four (4) special

trust accounts in the National Treasury, namely: (1) Special Road
Support Fund; (2) Special Local Road Fund; (3) Special Road Safety
Fund; and (4) Special Vehicle Pollution Control Fund. The
distribution of collections under this Act shall be as follows:

(1) Eighty percent (80%) shall be allotted to and placed in

the Special Road Support Fund;
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(2) Five percent (5%) shall be allotted to and placed in the

Special Local Road Fund;

(3) Seven and one-half percent (7.5%) shall be allotted to

and placed in the Special Road Safety Fund; and

(4) Seven and one-half percent (7.5%) shall be allotted to

and place in the Special Vehicle Pollution Control Fund.

The Special Road Support Fund, the Special Local Road

Fund and the Special Road Safety Fund shall be under the DPWH,
whereas the Special Vehicle Pollution Control Fund shall be under
the DOTC.

Seventy percent (70%) of the Special Road Support Fund

shall be used exclusively for the maintenance of, and the
improvement of drainage of, national primary roads. The
remaining thirty percent (30%) thereof shall be allocated and used
for the maintenance, and improvement of drainage of national
secondary roads throughout the country.

The cost of installation of adequate and efficient traffic lights

and road safety devices throughout the country, where such traffic
lights and safety devices are needed, shall be taken from the
Special Road Safety Fund.

The Special Local Road Fund shall be apportioned to

provincial and city governments in accordance with the vehicle
population and size of the road network under their respective
jurisdictions, and shall be used exclusively for maintenance of
local roads, traffic management and road safety devices.

A Road Board to implement the prudent and efficient

management and utilization of the special funds shall be organized
by the President of the Philippines. The Road Board shall be
composed of seven (7) members, with the Secretary of the DPWH
as ex officio head, and the secretaries of the Departments of
Finance, Budget and Management, and Transportation and
Communications, as ex officio members. The remaining three
(3) members shall come from transport and motorist organizations
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which have been in existence and active for the last five (5) years
prior to this Act. They shall be appointed for a term of two (2)
years each by the President of the Philippines upon the
recommendation of the secretaries of the DPWH and the DOTC.

SEC. 8. Status of the Special Funds. – The four (4) special

funds established under this Act shall be distinct and separate
from and in addition to any appropriation authorized and granted
yearly to the DPWH and the DOTC 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 road maintenance of the DPWH: Provided, however,
That any savings for each year out of such appropriation shall
revert to the General Fund. Any savings from the special funds
created herein shall accrue to these respective special funds.

SEC. 9. Implementing Rules and Regulations. – The

secretaries of the DPWH and the DOTC shall jointly within thirty
(30) days from the effectivity of this Act, promulgate the rules
and regulations to implement and carry out the intent, objectives,
purposes and provisions of this Act, including such structural
and procedural improvements in the systems and agencies
concerned as may be necessary to ensure the prudent, wise,
effective and efficient utilization of the special funds established
under this Act: Provided, That the Secretary of the DPWH shall
prepare the portion of the implementing rules and regulations
pertaining to the Special Road Support Fund, the Special Local
Road Fund, and the Special Road Safety Fund, and the Secretary
of the DOTC shall prepare the portion of the implementing rules
and regulations pertaining to the collection of the MVUC stated
under Section 3 of this Act and on the disposition of the monies
accruing to the Special Vehicle Pollution Control Fund.

SEC. 10. Prohibition Against the Imposition of Similar

Charge on Users of Motor Vehicles. – No other tax, fee or any
other charge of similar nature, as the Motor Vehicle User's Charge
shall be imposed by any political subdivision or unit in the country.

This provision shall apply to all motor vehicles, including

tricycles, motorized pedicabs and "trisikads."
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SEC. 11. Repealing Clause. – Except as provided under

Section 3 hereof, all other provisions of Executive Order No. 43,
series of 1986, and Section 8 of Republic Act No. 4136, as amended
by Batas Pambansa Bilang 74, and all other 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.

SEC. 12. 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.

SEC. 13. Effectivity. – This Act shall take effect after fifteen
(15) days following its publication in at least two (2) newspapers
of general circulation.

Approved, June 27, 2000.