QuestionsQuestions (MEMORANDUM ORDER NO. 73)
The policy is to ensure adequate maintenance of national and provincial roads through sufficient funding.
The MVUC is a charge imposed on every motor vehicle (for hire or private use), including government motor vehicles as provided in the Act, and it is collected from and paid by the owner of the motor vehicle.
It is imposed in lieu of (1) the registration fee under Section 8 of RA 4136 as amended by BP Blg. 74, and (2) the Private Motor Vehicle Tax under Executive Order No. 43 (1986).
It equals the private motor vehicle tax under EO 43 plus: 25% (first year), 50% (second year), 75% (third year), and 100% (fourth year and thereafter).
They are subject to the MVUC rates prescribed in Section 3(b) of RA 8794 (the base rates plus the year-based percentage add-ons).
For each vehicle category, MVUC is the base rate plus: 25% (first year from effectivity), 50% (second year), 75% (third year), 100% (fourth year and thereafter).
MVUC for sports utility vehicles is 15% higher than the MVUC set for private utility vehicles.
They shall not pay more than Three Hundred Pesos (P300).
The President may adjust the rates after the fourth year, reflecting but not exceeding the annual rate of increase of the Consumer Price Index (CPI), and not more than once every five (5) years.
They shall follow the procedure that will be promulgated by the Secretary of the Department of Budget and Management (DBM).
LTO submits recommendations for changes in vehicle classification for approval by the DOTC Secretary; manufacturers must submit specs of new models to LTO at least three (3) months before market introduction so LTO can recommend classification and MVUC rate to the DOTC Secretary.
An amount equivalent to 25% of the MVUC is imposed for loading beyond prescribed gross vehicle weight, provided that no axle load shall exceed 13,500 kgs.
They are deposited in four special trust accounts in the National Treasury: (1) Special Road Support Fund, (2) Special Local Road Fund, (3) Special Road Safety Fund, and (4) Special Vehicle Pollution Control Fund.
80% to Special Road Support Fund, 5% to Special Local Road Fund, 7.5% to Special Road Safety Fund, and 7.5% to Special Vehicle Pollution Control Fund.
No other tax, fee, or similar charge of the same nature may be imposed by any political subdivision or unit; this applies to all motor vehicles including tricycles, motorized pedicabs, and trisikads.
After fifteen (15) days following publication in at least two (2) newspapers of general circulation.