Title
Motor Vehicle User Charge Guidelines
Law
Lto Memorandum Circular No. Bgc-mc-01328
Decision Date
Jan 28, 2001
The LTO Memorandum Circular No. BGC-MC-01328 establishes the Motor Vehicle User's Charge (MVUC) for all motor vehicles, detailing registration fees based on vehicle type and age, while implementing penalties for delinquent registrations and axle overloading.
motor vehicle
registration fees
administrative law

Legal basis and substituted charges

  • The circular is issued pursuant to Section 8 of Republic Act No. 4136 as amended by Republic Act No. 8794.
  • The circular provides that, in lieu of the registration fees under Section 8 of Republic Act No. 4136 as amended by Batas Pambansa Blg. 74 for For Hire vehicles and Private Motor Vehicle Tax under Executive Order No. 43 (series of 1986), the Motor Vehicle User’s Charge (MVUC) is imposed.
  • The circular directs MVUC collection in accordance with the schedule it provides for vehicles for renewal registration pursuant to Section 3A of Republic Act No. 8794.
  • The circular operates alongside the Joint DPWH-DOTC Implementing Rules and Regulations dated 16 August 2000 by setting practical guidelines for MVUC and related registration matters.

MVUC defined and terms used

  • The circular provides that the term “Motor Vehicle User’s Charge (MVUC)” is used interchangeably with the term “registration fees” under Section 8 of Republic Act No. 4136 as amended, pursuant to Section 2 of Republic Act No. 8794.
  • The circular defines “Sport Utility Vehicle (SUV)” to include utility vehicles (including CBU, SKD, CKD variants) that are Model 1991 or later, have an imported machine-cast body shell, are specially designed to transport persons (not primarily for freight/cargo), and have car/automobile-like characteristics and amenities.
  • The SUV definition includes examples such as Mitsubishi Pajero/Montero, Nissan Patrol, Nissan Terrano, Toyota Land Cruiser, Toyota RAV 4, Range Rover, Land Rover, Ford Expedition, Jeep Cherokee, Daihatsu Feroza, Suzuki Vitara, Honda CR-V, Mercedes Benz Musso, Kia Sportage, Opel Vectra, and similar models.
  • The circular states that 1990 Models or earlier are treated as ordinary UV.
  • The circular defines Types of Utility Vehicles (UV) into:
    • Local Pick-ups (UV): locally manufactured utility vehicles with cut-and-weld body or backyard assembled/rebuilt vehicles (with or without crew cab), with examples including Ford Fiera, Owner-Type Jeep, ANFRA, Sarao Type Jeepney, Toyota Tamaraw AUV, Mitsubishi AUV, Pinoy, and similar designs.
    • Imported Pick-ups (UV): imported CBU/SKD/CKD light automotive vehicles with or without crew cab/double cab used for carrying passengers and/or transporting goods, including examples such as Mitsubishi Strada Pick-up, Toyota Hilux, Mazda Pick-up, Isuzu Pick-up, Kia Ceres Pick-up, Dodge Ram Pick-up, Pathfinder, and similar vehicles.
    • Imported Passenger Van/Wagon (UV): imported CBU/SKD/CKD commuter vehicles with rear or side doors and side panels for transporting people and not used for cargo, including examples such as Toyota Lite Ace, Toyota Hi-ace, Toyota Revo, Mitsubishi L300, Mazda E200, Kia Besta, Pregio, Nissan Urvan, Nissan Vanette, MB-100 Van, Hyundai -100 Van, Tamaraw FX Wagon, Mitsubishi Adventure, Kia Advantage, Isuzu Highlander, and similar vehicles.

MVUC schedule for renewal registration

  • The circular sets an MVUC schedule for renewal registration pursuant to Section 3A of Republic Act No. 8794.
  • Each vehicle category uses a base rate plus an annual increase pattern identified in the schedule as:
    • +25% for 2002
    • +50% for 2003
    • +75% for 2004 & thereafter
    • The schedule also provides 2001 rates as the base.
  • The circular clarifies that rates are effective from January 01 of the stated year.

I. Aged private vehicles

  • Aged private vehicles are private passenger cars registered under the Private Motor Vehicles Tax Law, Executive Order No. 43, in relation to Republic Act No. 8794.
  • Passenger cars (Light, GVW up to 1600 kg):
    • Current (up to 5-years old): 2001: 1000; 2002: 1250; 2003: 1500; 2004 & thereafter: 1750; Base rate shown as 2000; 2004 & thereafter rate shown as 2000 in the grid.
    • Over 5 years old: 2001: 700; 2002: 875; 2003: 1050; 2004 & thereafter: 1225; 2004 & thereafter shown as 1400 in the grid.
  • Passenger cars (Medium, GVW 1601-2300 kg):
    • Current (up to 3-years old): 2001: 3000; 2002: 3750; 2003: 4500; 2004 & thereafter: 5250; 2004 & thereafter shown as 6000 in the grid.
    • 4 to 5-years old: 2001: 2400; 2002: 3000; 2003: 3600; 2004 & thereafter: 4200; 2004 & thereafter shown as 4800 in the grid.
    • Over 5 years old: 2001: 1200; 2002: 1500; 2003: 1800; 2004 & thereafter: 2100; 2004 & thereafter shown as 2400 in the grid.
  • Passenger cars (Heavy, GVW > 2300 kg):
    • Current (up to 5-years old): 2001: 6000; 2002: 7500; 2003: 9000; 2004 & thereafter: 10500; 2004 & thereafter shown as 12000 in the grid.
    • Over 5 years old: 2001: 2800; 2002: 3500; 2003: 4200; 2004 & thereafter: 4900; 2004 & thereafter shown as 5600 in the grid.
  • The circular states that aging pursuant to Executive Order No. 43 ceases upon effectivity of the law, and that the base rate is the rate under Executive Order No. 43 at the age of the motor vehicle upon effectivity of the annual increase in the IRR (Year 2001 - 2004).

II. Ageless private and government vehicles

  • Ageless private and government vehicles are all private and government motor vehicles registered under Section 3b of Republic Act No. 8794 without any age, referred to as “ageless.”
  • Passenger cars (New/Original and Subsequent Registration):
    • Light (GVW up to 1600 kg): 2001: 800; 2002: 1000; 2003: 1200; 2004 & thereafter: 1400; 2004 & thereafter shown as 1600 in the grid.
    • (GVW > 1601 to 2300 kg): 2001: 1800; 2002: 2250; 2003: 2700; 2004 & thereafter: 3150; 2004 & thereafter shown as 3600 in the grid.
    • Heavy (GVW > 2300 kg): 2001: 4000; 2002: 5000; 2003: 6000; 2004 & thereafter: 7000; 2004 & thereafter shown as 8000 in the grid.
  • Utility vehicles (UV) are computed based on GVW bands and the schedule amounts:
    • GVW up to 2700 kg: 2001: 1000; 2002: 1250; 2003: 1500; 2004 & thereafter: 1750; 2004 & thereafter shown as 2000 in the grid.
    • GVW 2701-4500 kg: 2001: 1000 + .20; 2002: 1250 + .25; 2003: 1500 + .30; 2004 & thereafter: 1750 + .35; 2004 & thereafter shown as 2000 + .40 in the grid.
  • Sports utility vehicles (SUV) have their own UV computation schedule:
    • GVW up to 2700 kg: 2001: 1150; 2002: 1440; 2003: 1725; 2004 & thereafter: 2015; 2004 & thereafter shown as 2300 in the grid.
    • GVW 2701-4500 kg: 2001: 1150 + .23; 2002: 1440 + .29; 2003: 1725 + .35; 2004 & thereafter: 2015 + .40; 2004 & thereafter shown as 2300 + .46 in the grid.
  • Motorcycles/mopeds/tricycles:
    • With sidecars: 2001: 150; 2002: 190; 2003: 225; 2004 & thereafter: 265; 2004 & thereafter shown as 300 in the grid.
    • Without sidecars: 2001: 120; 2002: 150; 2003: 180; 2004 & thereafter: 210; 2004 & thereafter shown as 240 in the grid.
  • Trucks and truckbuses:
    • GVW > 4500 kg: computed using the schedule expressions “900 + .12 GVW^2700 kg” and the corresponding 2002-2004 & thereafter bands shown in the grid (with 1125 + .15, 1350 + .18, 1575 + .21, 1800 + .24, up to the GVW^2700 kg band).
  • Trailers:
    • GVW: computed as 0.12 x GVW kg, 0.15 x GVW kg, 0.18 x GVW kg, 0.21 x GVW kg, and 0.24 x GVW kg for the schedule years.
  • The circular provides that aging stops upon effectivity of the law and that the base rate is the computed average rate for fifteen years to address the elimination of aging under the law.

III. For hire vehicles (ageless)

  • For hire vehicles are treated as ageless for MVUC because they had heretofore no aging.
  • For hire passenger cars:
    • Light (GVW up to 1600 kg): 2001: 450; 2002: 565; 2003: 675; 2004 & thereafter: 790; 2004 & thereafter shown as 900 in the grid.
    • Medium (GVW 1601-2300 kg): 2001: 900; 2002: 1125; 2003: 1350; 2004 & thereafter: 1575; 2004 & thereafter shown as 1800 in the grid.
    • Heavy (GVW > 2300 kg): 2001: 2500; 2002: 3125; 2003: 3750; 2004 & thereafter: 4375; 2004 & thereafter shown as 5000 in the grid.
  • For hire utility vehicles (UV) (by GVW computation):
    • GVW up to 4500 kg: 2001: .15 x GVW kg; 2002: .19 x GVW kg; 2003: .22 x GVW kg; 2004 & thereafter: .26 x GVW kg; 2004 & thereafter shown as .30 x gvw kg.
  • For hire SUV:
    • GVW up to 2700 kg: 2001: 1150; 2002: 1440; 2003: 1725; 2004 & thereafter: 2015; 2004 & thereafter shown as 2300 in the grid.
    • GVW 2701-4500 kg: computed with added factors + .23, + .29, + .35, + .40, + .46 across the years.
  • For hire motorcycles/mopeds/tricycles:
    • With sidecars: 2001: 240; 2002: 300; 2003: 300; 2004 & thereafter: 300; 2005? shown as 300.
    • Without sidecars: 2001: 150; 2002: 190; 2003: 225; 2004 & thereafter: 265; 2004 & thereafter shown as 300 in the grid.
  • For hire truckbuses:
    • GVW > 4500 kg: computed as 0.15 x GVW kg; 0.19 x GVW kg; 0.22 x GVW kg; 0.26 x GVW kg; 0.30 x GVW kg.
  • For hire trucks:
    • GVW > 4500 kg: computed using schedule expressions shown in the grid, including 900 + .12 GVW^2700 kg; 1125 + .15 GVW^2700 kg; 1350 + .18 GVW^2700 kg; 1575 + .21 GVW^2700 kg; 1800 + .24 GVW^2700 kg.
  • For hire trailers:
    • GVW: computed as 0.12 x GVW kg; 0.15 x GVW kg; 0.18 x GVW kg; 0.21 x GVW kg; 0.24 x GVW kg.

Rounding and rate conventions

  • The circular defines GVW as Gross Vehicle Weight in Kilograms.
  • The circular states that “>” means “more than.”
  • The circular states that “^” means “in excess of weight indicated.”
  • The circular requires that the collectible MVUC, including the axle overloading penalty in Section 6b, be rounded off to the nearest five pesos (=P=5.00) using:
    • Up to P=2.50 rounds to P=00.00
    • >= P=2.50 rounds to P= 5.00

Tax exempt recording and private-road recording

  • The circular imposes an annual recording fee of P500.00 on owners of every tax exempt motor vehicle covered under international commitments.
  • The annual P500.00 recording fee does not apply to vehicles indorsed by the Department of Foreign Affairs as specifically free from payment under the applicable International Treaties and Agreements.
  • The circular requires a recording fee of P500.00 for all motor vehicles except motorcycles regardless of type/classification that are exclusively used and operated on private roads.
  • The circular provides that stickers in lieu of regular plates shall be issued corresponding to the year of recording for privately road-exclusive vehicles.
  • The circular states that privately road-exclusive vehicles shall not be required to be physically brought to the LTO for recording.
  • The circular provides that privately road-exclusive vehicles shall not be required to be covered by compulsory vehicle insurance for the recording fee arrangement.

Registration stagger system rules retained

  • The circular states that existing rules on staggered monthly registration of motor vehicles remain in effect under Administrative Order No. 3, series of 1980, as amended by Administrative Order No. 84 AO-DIR-003 dated 08 May 1984, Circular 84 C-DIR-009 dated 05 July 1984, and Memorandum Circular 85-051 dated 02 December 1985.
  • The circular retains these stagger rules except as to the amount of the penalty as prescribed in Section 6.

GVW registration rules and DPWH eligibility

  • The circular requires that every motor vehicle shall be registered at the computed GVW or factory-rated GVW whichever is greater, but in no case more than the maximum allowable/permissible as prescribed in the DPWH letter dated 23 October 2000, Annex “A.”
  • The circular requires a DPWH Certificate of Eligibility when a motor vehicle would otherwise exceed the maximum allowable/permissible GVW under the referenced DPWH letter.
  • The circular provides that extraordinary motor vehicles not listed in the Table of Maximum Allowable Gross Weight per Annex “A” and/or those exceeding the maximum allowable GVW corresponding thereto must secure a DPWH Certificate of Eligibility.
  • The circular states that DPWH eligibility for extraordinary vehicles is subject to regulations prescribed in the DPWH-DOTC-DILG Joint Order dated ____________ on extraordinary vehicles.
  • The circular requires that any uneven weight of less than 100 kilograms shall be taken and considered as equivalent to 100 kilograms for purposes of computing the collectible MVUC.

Penalties for delinquency and axle overloading

Delinquent registration penalties

  • The circular requires that all motor vehicle owners assessed for delinquent registration beyond the month indicated by the last digit of the plate number shall be charged 50% of the MVUC rates specified in the circular.
  • The circular requires an additional fixed penalty of P200.00 for all motor vehicles except MC/TC for delinquent registration beyond the month as indicated by the last digit of the plate number.
  • The circular requires P100.00 for all motor vehicles (MC/TC) for delinquent registration beyond the week as indicated by the middle digit of the plate number.
  • The circular provides that the assessment is based on existing LTO regulations cited in the stagger system and on the delinquent registration rules under Circular No. 82-028 dated 08 June 1982, as amended by Circular No. 83C-DIR-020 dated 31 May 1983.
  • The circular requires application of the following delinquent apprehension rule: all delinquent years plus the fifty percent per annum penalty shall be imposed, and the current year shall be collected, with additional fifty percent levied if the period to register based on the last digit of the plates is already over during the current year.

Axle overloading penalties

  • The circular requires an axle overloading penalty on trucks and trailers for loading beyond their registered gross vehicle weight.
  • The penalty equals an amount equivalent to twenty-five percent (25%) of the MVUC at the time of infringement.
  • The circular imposes a weight limit: no axle load shall exceed thirteen thousand five hundred kilograms (13,500 kgs.)
  • The circular waives the penalty for loads exceeding the registered GVW by a tolerance of less than 5%.
  • The circular prohibits the vehicle from proceeding on the roadway if either:
    • a dual-wheel axle load exceeds 13,500 kgs., or
    • the vehicle load exceeds one hundred fifty percent (150%) of the maximum allowable GVW.
  • The circular directs that further details are found in Circular No. 71 dated 01 January 1981 and Circular No. 82-028 dated 08 June 1982.

Repealing and effectivity provisions

  • The circular revokes or amends inconsistent rules, regulations, orders, or portions thereof under its Repealing Clause.
  • The circular takes effect after fifteen days following:
    • receipt by the Office of the National Administrative Register (ONAR), U.P. Law Center, Diliman, Quezon City of three (3) copies, and
    • publication in two (2) newspapers nationwide of general circulation.

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