Motor Vehicle User's Charge Act

MVUC replaces the registration fee under RA No. 4136 and the Private Motor Vehicle Tax under EO No. 43, s. 1986.
Applies to all motor vehicles, whether for private or hire use, including government vehicles.
The owner of the vehicle is liable to pay the MVUC.

Private passenger cars registered before the Act's effectivity pay the old MV tax plus incremental surcharges over four years (25%, 50%, 75%, 100%).
Cars registered for the first time after effectivity are subject to new base rates plus similar incremental increases over four years.
Different vehicle categories have specified base rates depending on Gross Vehicle Weight (GVW), including passenger cars, utility vehicles, motorcycles, buses, trucks, and trailers.
Sports Utility Vehicles (SUVs) pay 15% higher than private utility vehicles.
Motorcycles for hire with sidecars capped at P300.
President authorized to adjust rates every five years, with adjustments not exceeding Consumer Price Index increases.

Payment method for government vehicles is to be set by the Department of Budget and Management.

The Land Transportation Office (LTO) submits classification change recommendations to the DOTC Secretary.
Manufacturers/assemblers must submit specs at least three months before introducing new models.
LTO classifies new models and recommends MVUC rates within three months of receiving specs.

Trucks and trailers overloaded beyond prescribed GVW incur an additional charge equal to 25% of the MVUC.
Axle load limit is set at 13,500 kgs.

All MVUC collections are earmarked exclusively for:
1. Road maintenance and drainage improvement.
2. Installation of efficient traffic lights and safety devices.
3. Air pollution control measures.
Collections deposited into four special trust funds:
- 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 the first three funds; DOTC manages the Vehicle Pollution Control Fund.
Special Road Support Fund allocates 70% for national primary roads’ maintenance and 30% for national secondary roads.
Special Local Road Fund apportioned to provincial and city governments based on vehicle population and road network size.

A seven-member Road Board will manage the funds prudently.
Members include DPWH Secretary (head), secretaries of Finance, Budget and Management, Transportation and Communications, and three transport/motorist representatives.
The President appoints the three representatives for two-year terms.

The special funds are additional and distinct from the DPWH and DOTC annual appropriations.
Congress continues to appropriate funds for road maintenance; savings revert to the general fund.
Savings from the special funds remain within those funds.

The Secretaries of DPWH and DOTC must jointly promulgate implementing rules within 30 days of the Act’s effectivity.
DPWH Secretary handles rules covering Road Support, Local Road, and Road Safety Funds.
DOTC Secretary covers MVUC collection and Vehicle Pollution Control Fund.

No additional tax, fee, or charge similar to MVUC may be imposed by any local government unit.
This includes all motor vehicles, tricycles, motorized pedicabs, and "trisikads."

Provisions inconsistent with this Act, except for motor vehicle tax rates specified in Section 3, are repealed or modified.
This includes parts of EO No. 43, RA No. 4136, and related issuances.

If any provision is declared unconstitutional or invalid, the remaining provisions remain effective.

The Act takes effect fifteen days after publication in at least two newspapers of general circulation.