Authority and coverage rules
- Section 2 imposes the MVUC on every motor vehicle, whether for hire or for private use.
- Section 2 expressly includes government motor vehicles within the MVUC coverage, subject to the provisions of Section 3 and the special payment procedure under Section 4.
- The MVUC is collected from and paid by the owner of the motor vehicle under Section 2.
- Section 2 states that the MVUC is imposed in lieu of (a) the registration fee under Section 8 of Republic Act No. 4136, as amended by Batas Pambansa Bilang 74, and (b) the private motor vehicle tax under Executive Order No. 43 (1986).
Motor Vehicle User’s Charge (MVUC) rates
- Section 3(a) provides a special MVUC rate schedule for private passenger cars registered as of the date of effectivity of this Act.
- For private passenger cars registered as of effectivity, the MVUC to be paid equals the private motor vehicle tax under Executive Order No. 43 (1986) plus:
- 25% for the first year,
- 50% for the second year,
- 75% for the third year,
- 100% for the fourth year and thereafter.
- Section 3(a) provides that private passenger cars registered for the first time after the effectivity of this Act are subject to the MVUC rates in Section 3(b).
- Section 3(b) provides the general MVUC framework “for each motor vehicle under each of the categories as herein provided,” collected at base rates plus annual add-ons based on the year from effectivity:
- base rates plus 25% for the first year,
- base rates plus 50% for the second year,
- base rates plus 75% for the third year,
- base rates plus 100% for the fourth year and thereafter.
- Section 3(b) sets a comparative rule for sports utility vehicles: MVUC for sports utility vehicles is 15% higher than the MVUC set for private utility vehicles.
MVUC base rates by vehicle category
- Section 3(b) sets these base rates (applying the annual add-on percentages based on the year from effectivity):
- Private and Government — Passenger Cars
- GVW up to 1,600 kgs.: P 800
- GVW more than 1,600 kgs. – 2,300 kgs.: 1,800
- GVW more than 2,300 kgs: 4,000
- Private and Government — 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.
- Private and Government — Motorcycles
- without sidecar: P 120
- with sidecar: 150
- Private and Government — Buses
- GVW more than 4,500 kgs: P900 + P12 per 100 kgs. of GVW over 2,700 kgs.
- Private and Government — Trucks
- GVW more than 4,500 kgs: P900 + P12 per 100 kgs. of GVW over 2,700 kgs.
- Private and Government — Trailers
- P12 per 100 kgs. of GVW
- For Hire — Passenger Cars
- GVW up to 1,600 kgs.: P 450
- GVW more than 1,600 kgs – 2,300 kgs: 900
- GVW more than 2,300 kgs: 2,500
- For Hire — Utility Vehicles
- GVW up to 4,500 kgs: P15 per 100 kgs. of GVW
- For Hire — Motorcycles
- Without sidecar: P150
- For Hire — Buses
- GVW more than 4,500 kgs: P15 per 100 kgs. of GVW
- For Hire — Trucks
- GVW more than 4,500 kgs: P900 + P12 per 100 kgs. of GVW over 2,700 kgs.
- For Hire — Trailers
- GVW more than 4,500 kgs: P12 per 100 kgs. of GVW
- Private and Government — Passenger Cars
- Section 3(b) caps the MVUC for motorcycles for hire with sidecars: it shall not pay more than Three hundred pesos (P300).
Presidential rate adjustment authority
- Section 3(b) provides that after the fourth year from the effectivity of this Act, the President of the Philippines may adjust the rates contained in Section 3.
- Section 3(b) requires that any adjustment be reflective of but shall not exceed the annual rate of increase of the Consumer Price Index (CPI).
- Section 3(b) limits the President’s adjustments to not more than once every five (5) years.
Payment procedure for government vehicles
- Section 4 requires that the manner of payment of the user’s charge on government motor vehicles must follow a procedure promulgated by the Secretary of the Department of Budget and Management (DBM).
Reclassification and new models process
- Section 5 requires the Land Transportation Office (LTO) to submit recommendations for any change in the classification of motor vehicles listed in Section 3 for approval by the Secretary of the Department of Transportation and Communications (DOTC).
- Section 5 requires all manufacturers and/or assemblers to submit specifications of any new model of motor vehicle to the LTO not later than three (3) months prior to the introduction of that new model in the market.
- Section 5 requires the LTO to recommend for approval by the DOTC the proper classification of the new model and the MVUC rate under which it will fall.
- Section 5 directs the LTO to release the proper classification of the new model on or before its scheduled market release, and in no case later than three (3) months after receipt of the new model’s specifications.
Penalty for overloading
- Section 6 imposes a penalty equivalent to twenty-five percent (25%) of the MVUC on trucks and trailers for loading beyond the prescribed gross vehicle weight.
- Section 6 provides an express load limit: no axle load shall exceed thirteen thousand five hundred kilograms (13,500 kgs.).
Disposition of MVUC collections and board
- Section 7 requires that all monies collected under the Act be earmarked solely and exclusively for:
- (1) road maintenance and the improvement of road drainage,
- (2) installation of adequate and efficient traffic lights and road safety devices,
- (3) air pollution control.
- Section 7 mandates depositing MVUC collections in four (4) special trust accounts in the National Treasury:
- (1) Special Road Support Fund
- (2) Special Local Road Fund
- (3) Special Road Safety Fund
- (4) Special Vehicle Pollution Control Fund
- Section 7 prescribes the distribution of collections:
- 80% to the Special Road Support Fund,
- 5% to the Special Local Road Fund,
- 7.5% to the Special Road Safety Fund,
- 7.5% to the Special Vehicle Pollution Control Fund.
- Section 7 places:
- Special Road Support Fund, Special Local Road Fund, and Special Road Safety Fund under the DPWH,
- Special Vehicle Pollution Control Fund under the DOTC.
- Section 7 allocates the Special Road Support Fund:
- 70% exclusively for maintenance of, and improvement of drainage of, national primary roads,
- 30% for maintenance of, and improvement of drainage of, national secondary roads throughout the country.
- Section 7 provides that the cost of installing adequate and efficient traffic lights and road safety devices throughout the country shall be taken from the Special Road Safety Fund.
- Section 7 provides that the Special Local Road Fund shall be apportioned to provincial and city governments according to vehicle population and size of the road network within their jurisdictions, and shall be used exclusively for local road maintenance, traffic management, and road safety devices.
- Section 7 requires a Road Board to implement prudent and efficient management and utilization of the special funds.
- The Road Board has seven (7) members, with the Secretary of the DPWH as ex officio head.
- The secretaries of the Departments of Finance, Budget and Management, and Transportation and Communications are ex officio members.
- The remaining three (3) members come from transport and motorist organizations existing and active for the last five (5) years prior to this Act.
- The President appoints these three members for a term of two (2) years each upon recommendation of the secretaries of the DPWH and the DOTC.
Status of special funds and appropriations
- Section 8 provides that the four special funds are distinct and separate from, and in addition to appropriations authorized yearly for DPWH and DOTC expenditures for the identified objects under the Act.
- Section 8 requires Congress to continue appropriating an amount in the General Appropriations Act for road maintenance of the DPWH.
- Section 8 states that savings out of the DPWH appropriation revert to the General Fund.
- Section 8 directs that savings from the special funds accrue to their respective special funds.
Implementing rules
- Section 9 requires the secretaries of the DPWH and DOTC to jointly promulgate the implementing rules and regulations within thirty (30) days from the effectivity of the Act.
- Section 9 requires the implementing rules to cover structural and procedural improvements necessary to ensure prudent, wise, effective, and efficient utilization of the special funds.
- Section 9 assigns drafting responsibilities:
- the Secretary of the DPWH prepares the portion covering the Special Road Support Fund, Special Local Road Fund, and Special Road Safety Fund,
- the Secretary of the DOTC prepares the portion covering MVUC collection under Section 3 and disposition of monies accruing to the Special Vehicle Pollution Control Fund.
Prohibition on similar charges
- Section 10 prohibits any political subdivision or unit in the country from imposing any other tax, fee, or charge of similar nature to the MVUC.
- Section 10 states that the prohibition applies to all motor vehicles, including tricycles, motorized pedicabs, and “trisikads.”
Repeals, separability, and effectivity
- Section 11 repeals or modifies all provisions of Executive Order No. 43 (series of 1986), and Section 8 of Republic Act No. 4136, as amended by Batas Pambansa Bilang 74, to the extent inconsistent with the Act, except as provided in Section 3.
- Section 11 also repeals or modifies all other laws, orders, issuances, circulars, rules and regulations, or parts thereof, inconsistent with the Act.
- Section 12 provides separability: if any provision is declared unconstitutional or invalid, the remaining parts not affected continue in full force and effect.
- Section 13 sets the effectivity rule: the Act takes effect after fifteen (15) days following its publication in at least two (2) newspapers of general circulation.
Issuance details
- Republic Act No. 8794 is approved on June 27, 2000.
- Republic Act No. 8794 imposes a Motor Vehicle User’s Charge on owners of all types of motor vehicles and provides for related purposes.