Coverage of the Motor Vehicle User's Charge (MVUC)
- MVUC imposed on all motor vehicles, including private, for hire, and government vehicles.
- MVUC replaces prior registration fee and private motor vehicle tax.
- Collected from and paid by motor vehicle owners.
Rates of the Motor Vehicle User's Charge
- Private passenger cars registered before the Act's effectivity pay previous motor vehicle tax plus escalating percentages over four years.
- New private passenger cars registered after the Act's effectivity pay rates per category outlined in section 3(b).
- Rates vary by vehicle type, Gross Vehicle Weight (GVW), and use (private, government or for hire).
- Sports utility vehicles pay 15% higher rate than corresponding private utility vehicles.
- Motorcycles for hire with sidecars capped at P300.
- President authorized to adjust rates after four years, reflecting but not exceeding CPI increase, and not more often than every five years.
Government Motor Vehicles
- Payment procedures for government vehicles governed by the Department of Budget and Management.
Vehicle Reclassification and Introduction of New Models
- Land Transportation Office (LTO) recommends classification changes for approval by the Department of Transportation and Communications (DOTC).
- Vehicle manufacturers/assemblers must submit specifications three months prior to market introduction.
- LTO must classify new models within three months of specification receipt.
Penalty for Overloading
- Trucks and trailers overloaded beyond prescribed GVW pay an additional charge equal to 25% of MVUC.
- No axle load may exceed 13,500 kgs.
Disposition of Monies Collected
- Collected funds exclusively for:
- Road maintenance and drainage improvement.
- Installation of traffic lights and road safety devices.
- Air pollution control.
- Funds deposited into four special trust accounts:
- Special Road Support Fund (80%)
- Special Local Road Fund (5%)
- Special Road Safety Fund (7.5%)
- Special Vehicle Pollution Control Fund (7.5%)
- DPWH manages first three funds; DOTC manages pollution control fund.
- Road Support Fund: 70% for national primary roads, 30% for national secondary roads.
- Local Road Fund apportioned to provinces and cities based on vehicle population and road network.
- Road Board established, with seven members including DPWH, Finance, Budget, Transportation secretaries, and three transport/motorist org representatives.
- Road Board governs fund management and utilization.
Status of the Special Funds
- Special funds are separate and additional to regular DPWH and DOTC appropriations.
- Congressional appropriations for road maintenance continue.
- Savings from legislative appropriations revert to general fund; savings from special funds remain in those funds.
Implementing Rules and Regulations
- DPWH and DOTC secretaries to jointly promulgate rules within 30 days of Act's effectivity.
- DPWH responsible for rules on road-related funds.
- DOTC responsible for MVUC collection and pollution control fund rules.
Prohibition Against Similar Charges
- No other local government entity may impose tax or fees similar to MVUC.
- Applies to all motor vehicles including tricycles, motorized pedicabs, and "trisikads."
Repealing Clause
- Conflicting provisions in previous laws and orders such as Executive Order No. 43 and Republic Act No. 4136 are repealed or modified except as to Section 3.
Separability Clause
- Unconstitutional or invalid provisions do not affect the validity of remaining provisions.
Effectivity
- Act takes effect 15 days after publication in two newspapers of general circulation.