Question & AnswerQ&A (Republic Act No. 8794)
The primary policy is to ensure adequate maintenance of national and provincial roads through sufficient funding.
A Motor Vehicle User's Charge (MVUC) is imposed on every motor vehicle owner.
All types of motor vehicles whether for hire or private use, including government motor vehicles, are covered.
It is the private motor vehicle tax under Executive Order No. 43, series of 1986, plus a graduated percentage increase: 25% in the first year, 50% in the second year, 75% in the third year, and 100% in the fourth year onwards.
The base rate is 800 pesos.
Yes, an additional 25% of the MVUC is imposed for loading beyond prescribed gross vehicle weight limits.
The Department of Budget and Management (DBM) promulgates the procedures for the payment of MVUC on government motor vehicles.
Special Road Support Fund, Special Local Road Fund, Special Road Safety Fund, and 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.
To implement prudent and efficient management and utilization of the special funds collected from MVUC.
No, the Act prohibits any other tax, fee, or similar charge by any political subdivision on motor vehicle users.
Other parts of the Act not affected shall continue to be in full force and effect as per the separability clause.
It takes effect 15 days after its publication in at least two newspapers of general circulation.