Legislative purpose and emergency rationale
- The decree declares that the current economic crisis amounts to a grave emergency affecting the stability of the nation.
- The decree states that immediate action is required to address the emergency.
- The decree declares that issuance of the decree is an essential and necessary component of the national economic recovery program formulated to meet and overcome the emergency.
Core rule: private motor vehicle tax
- Section 1 requires that, in lieu of the registration fee and energy tax imposed under existing laws, every private motor vehicle shall pay a “private motor vehicle tax” upon every annual registration.
- Section 1 sets the tax according to vehicle type, engine displacement brackets, and years of age using the schedules below.
Tax schedule for private vehicles
- For Private Light Passenger Cars (0–1600cc), Section 1 imposes: P1,000 (current), P1,000 (1-year), P1,000 (2-year), P1,000 (3-year), P1,000 (4-year), P1,000 (5-year), and P800.00 (6-year).
- For Private Medium (1601cc–2800cc), Section 1 imposes: P2,000 (current), P2,000 (1-year), P2,000 (2-year), P2,000 (3-year), P1,600 (4-year), P1,600 (5-year), and P1,200 (6-year).
- For Private Heavy (2800cc and above), Section 1 imposes: P4,000 (current), P4,000 (1-year), P4,000 (2-year), P4,000 (3-year), P4,000 (4-year), P4,000 (5-year), and P2,800 (6-year).
- For Private Utility Vehicles (2700 kg GVW and below), Section 1 imposes a tax of P1000 regardless of age of vehicle.
- For tax-exempt vehicles, Section 1 requires payment of registration fees.
Coverage limits and exclusion of public utility vehicles
- Section 2 provides that the private motor vehicle tax does not apply to public utility vehicles.
Repeals, modifications, and inconsistency clause
- Section 3 repeals Presidential Decree Nos. 1984 and 1950.
- Section 3 provides that Republic Act No. 4136, as amended, and Presidential Decree No. 843 and Batas Pambansa Big. ?4 (as written) and all laws, decrees, rules and regulations or parts thereof that are inconsistent with the decree are modified accordingly.
- Section 3 makes the repeal and modification effective as part of the decree’s operation.
Implementing authority and adjustment/refund mechanism
- Section 4 directs that the Minister of Transportation and Communications shall issue the necessary rules and regulations to implement the decree.
- Section 4 requires those implementing rules to include the manner by which collections under Presidential Decree Nos. 1934 and 1950 are adjusted or refunded, as the case may be, because of this decree.