r ~- imposed on f.very motor.

vehicle, ·~vhethcr for hire or for private

11. No. 0863
~-· :n.;.;,. ISJO 11se. inr.luding govf)r n::uenL motor '\'f'hiclee. ·as
more fu lly
pro,,ided in Sect.ion 3 hereof. a Motor Veh'.cle User's Charge
(MVUC) which sh~ll he coliecterJ from al'.)d paid by the owner
of the mot.or vehicle.

SEC. :3. Ralr'S nf the Motnr Vdiiclc User 's Charge. - (a)
For private passenger cars rf-'bistered as of .the date of
effocL1viLy of this Act, the !vPVl..JC t.o be pa.tel shail he t he private
1r1ot()r v~h i cie ta x unr!to:: r Executive Or der No. 43, series of

1!}86, pins tw~nty-(:ivc percent (25%) for the first year, fifty
percent (50%) for the i;ccon<l year, sevent.y-fi ve per cent (75%)
fol' the third year, and one hundred percent (100%) for the
four th yea r and th,erea.fter: Provided, howct1er, That private
) pm;senger r,:ars t.o be reg-istered for t.he first ti me after the
cffectivitv· of t his Act, ;:ihall he subject to the MVUC rates
p1·escribP.d in .Section 3(b) hereof.

(b) }~~r.cpt as provi<l ed under Section 3(a) hereof, for

8€gun and held in Metro Manila , on Mondiiy, the twenty-sixth <!ach motor vehicle under each of the cat.egor ies as h erein
day of Jufy, nineteen hur1dred and ninety- nine. pro·,1 idcd, the MVlJC shall be collected from and paid by the
vehicle owner, at the following base rat.es plus twenty-five
percent (25%) in the first year from the cffectjvity of this Act;
[ REPUBLIC Acr No. B'f94 , the said h~r,e rates plus fifty percent (50%) in th e second year
J fr(•m the effectivit.y of t.his Act; the s::iid base rates plus
seventy-five percent (75%) in the third year fro m the
AN ACT H..-1POSING A !vlOTOR VEHICLE USER'S CHAR.GE r.ffectivity of this 1\ ct; ~nd the said base rates plus on e h undred
ON OWNERS OF ALL TYPES OF MOTOR VEH ICLES percent (100%) in the fourth year from the effectivity of this
AND FOR OTHER PURPOSES Act and thereafte r: Prou£ded, That the MVUC for spor ts
r f utility vehicles shall be fifteen percent (I:)%) high er than t he
/
8!! it enacted by the Ser.ate and House of R~presentatives of the MVT.IC herein set for private utility vehicles: Provided, further,
Philippines in Congres.~ assembled: Thal: motorcycles for hire with sidecars shall not pay more
t.han Three hundred pesmi (P300.00).
SECTION l. Declaration of Policy. - It is hereby declared
as tbc poli.cy of._the State to provide for and ens\lre the Type of Vehicle · Base Rates
ad.equate maintenance of nat.icnal and p:-ovincial roads t.hrouv.h
tufftcient: f1mding for the pnrpose. · · - L P-riv::it.c and Government.

cr·r· •) C. overage. - I n 1·te:! A. Pa>;i:;cn;rer Cars

~) ~J • .u. 0 r1 t h G reg1str<\t1on
. . fae under
Seciion 8 of Republic Act No. 4136, aG amended hv Batas (1) GV\V up to 1.600 kgs. P 8'00
Pam!)ansa .Bilar.g 71, and the Private Motor VP.hide T;x under (2) GVW more than 1,600 kgs.- 2,300 kgs. 1,800
Exi:!cutive Order No . '!3. series of i 986, ther€ is hereby (3) (;VW more than 2,300 kgs. 4,000
B. Utility Vehi.des
D. Buses

GWl more than 4,GOO kgs. P 15 per J.00 kgA. of GVW

I
GVW up to 2,700 kgs . Pl,000 E. Trucks \
Pl,000 + P 20
GVW more than 2,700 kgs.- 4, 500 kgs.
per 100 kgs. of
G'v'W over
GV\V more than 4,500 kgA. P900 + PJ.2 per 100 ~rri;.
of GVW over 2.;mo kgs.
I
2,700 kgs. F. Trai lers I
C. Motorcycles GVW m ore than 4,500 kgs. Pl2 per 100 kgs. of G\iW
without sidecar p 120
150 After the fnurth yea r from the cffect.ivity of t.h;s Act
wit h sidecar
t he Preside nt of the Philippine!> may adjust the rates contained
D. Buses in Section 3 which Ahalt be reflective of but 8hall n ot e.x'-eed
~he annual r ate of ini::ref\se of the Consumer Price Jndcx (CI'J.).
P900 + P12 per 100
GVW mor e than -1,500 k gs. The President may a djust such rates not more than once ~verj
kge. of GVW over
five (5) )'ear.s.
2,700 kgs.

E. Trucks S.E:C. 4 . Government J\1ot.or Vehicles_ - The mann~r of

GVW more than •1,500 k gs.
F. Trailers
G\TW more than 4,500 kgs.
IL For Hi.re
A. Passenger Cars
(1) GVW up to 1,600 kgs.
(2) GVW more tha n 1,600 kl.gs.-2,300 kg~. !WO
(3) GVW more .t han 2,3f\!J kgs.
B. Utilit.y Vehicles
. /
G\ rw up lo 4,500 ~.gs.
P~'.yment oft.he user's charge on government 11\0V>r vehicle;;
P900 + P 12 per J{J(.J
s h a:ll be in accordance with the procedure that shall be
kgs. of G VW ov.:er pron.1ulgaLed by the Secretary of the Department of Budget
2,700 kg!3. cind ·l \.fanagement. (DI3M).
SE<..~. 5. Reclassification and New Model s of M otor
Pl2 per lll~O kgs. of Vehic/.es. - '!~he Land Transpor tation Office (LTO) shat! suhmit
GVW any recommenvlation for any change in the classification of
motor vehicles abo "e·listcd for approval by the Secretary of
the Department of T!'<>,nsportation and Commu.n ications
(DOTC). All manufacture'rs and/or aRsemblers · of motor
vehicles . s h a ll. not later than three (3) m onths prior t.o t.he
P 450
introduction of any new model o.f motor vehicle in the market
submit the specifications of such r,,ew model to the J.:ro which
2,500
shall recommend fo r approval by the· !>.-;aid secretary, the proper
classificat ion of the new model and t.:i~ rate of the MVUC
Pl5 per tOO kg"3. of under which the new model s h all fall. Tht· L'l'O shRll a lso
GVW release the prope r classification of said new ml"1tor ve hide

C.
-
Moti'.,i~cydes
model on or before the scheduled rPlease of such 11<>w model
t.o the market, hut in no case later than three (3) month s
aft.er its receipt of the new motor vehicle's specifications .
without ~i<le~u Pl50
 remaining thirty percent (30%) thereof shall be alloc~ted and
used for the maint.P.nance, and improvement of drainage of
5 natio~al secondary roads thro11ghout. the country ·
SEC. 6. Penalty for Ouerloarling. -An ammm.t. NJ. uiv~lent.
t.o twrnty-fivc percent (25%) of the MVUC shall he impcsccl 'The cost <lf inutallat.i on of adequ~te and e fficien t traffic
011 trucks ;; nd t.rnilers for loading heyon d thei r prcscrihcrl lights and road safety devices thrcughnut the country, where
f;l'Oss ve hicle weight: Provided, That no axle Ion.cl shall r:xcecd such fr<'lffi.c light!; 3na safety dcvicf!s an! needed, shall be taken
t.h.irt,ecn thou~and five h undred kiiogrnms (1 3,500 kgi::.). from the Sper.ial Road Safety Fund.

Sr.::c. 7 . Dispot;itr:on of Monies Cnl.lecl.ed. - A11 monies The Special Local Road Fund shall be apportioned to
<:ollect.(:n under this Act s}1all be enrm:trked solely :rnd used provincial and city gov~rnments in a ccordan ce wit~ the vehi~le
exchi.sively ( J) for road main timance a nd Lh !! improvP.mcP..t of population and size of lhe road network under t.he1r r espective
road:drainage, (2) for the inst~llation of adequate ancl effici ent jurisdictions, and s hall be used exclusively for mai.nte?ance
traffic lights and road. s3fety dnvices, and (3) for tiir pollutt. of local roads, traffic management and road safety devices. "
confrol.
A Road Board to impl~ment th e p;-ndent and efficient
!
t
/ All such monies collected shall he deposil,ed in fonr (1) management a nd utiliz.ation of t he specia l funds ·shall ·be
~pedal trnst accounts in the National Treas ury, n ~ m cly: (1) organi zed by th<> President. of the PhilippineR. The Road Board
Special Road Support fund; (2) S pecia l lflcal Road Fund: (3) r.hall be composed of seven (7) me mbers, with the Secreta1·y
Speci<11 Road Safety fund.: and (4) Special VF-hide P rillution of t he DPWH as ex off~cio head, and the secretaries of th~
Confrnl Fund. The dist.ribution oi collections undC:r this Act Departments of Finance, Budget Rnd Manag~~e.nt, and
shail ~P: ;.is follows: Transportation and Communications. as ex officio m.~~bt;z:s.
.. The remaining three (3) members shRll come from transport
. .~.:!.) Eighty .percent. (80%) shall be alloLted t.o and placed and. motorist organizations which have been in C?tistence and
in the Special Road Supi)O'r t F: md; active for t he la~t five (5) years prior to this Act. They, shall
be appoin t.e d for a term of two (2) yea!·s each by the President
of the P hilippines upon the recom mendation of the secretaries
(2) Five percent (5%) shall be allotted to and placed in
the Spcci::ll Local Road F und; of the DPWH and the DOTC.

SbC. 8. Status of Lhe Sp1xial F unds. - The four (4)

(3) Seven a nd one-half percent (7.5%) sh a ll b1~ allotted
s pecial funds est.a blislied under thii:; Act s hall be distinct .a nd
,I t.o :rnd placed in the Special Road Safety Fund: :ind
separate from and in addition to 1rny appropriat.ion authorize d
and granted yea rly to the DPWH a nd the DOTC to cover
(4) Seven ·a nd one-ha lf percent (7.5%) s hall be ellott.ecl c;:penditures for the identified objects of ex.penditures under
to and pl~ce in the Special Vehicl.e Pollution Con trol Fund. this Act. Congress shall continue t,o appropriate ·an a mount
in the General Appropriations Act for road m ai ntenance of
The Spcci<> l Road Support Fund , the Special Locnl Road . r: h
the DPWH : Provided., however, That. any savings .or eac
Fund an d the Special Ro<id Safety Fund sha ll lw unrlr.r the year out of such approprint.1on shall revert to t he Gener~l
DP'l'.iH, wh ereas the Special Vehicle Polhitinn C0ntrnl fund f und . Any ~uvi ngs from t.he special funds create d here in
:>hall be undtJr t.hc DOTC. shall accrue to t.hese respective specia l funds.

Seve nty percent (70%) of the Special Road Support Fund •"
sha ll l)e used ex<:lusivcly for the mai nte i:rnnce of. nn<l th<>
i;;:1provement of drninagc of. n;ltional prima r:" rond!'. The
\~ ---- ·

_ ... - - - - - ........... ..-..a.. ... ~-.,. . ..._·-.:-"..:.:...:..:.!...:::::.;- _.=. =-:;:....----=--- .. _. _ _ _ •

 7 8
SEC. 9. Implementing Rnles an.rt R cgu.lotions. - The SEC. l 3. E((ectivity. - 'T'his Act s hall take effect after
sP.cr etaries of the DPWH and the DOTC i:ihall jointly within fifteen 0 5) d:iys followi~g its publication in a t least two (2)
t hirty (30) days from t h e "effectivity of this Act, promulgate new~papers of gc:1ernl cu·culation.
the rules and regulnt.ions to implement. a nd carry out the
inLen t , objectives, purposes an d proviaions of this Ac t . Approved,
includ ing such structurai a nd procedur al improvemen t1; in
:.he sy3tems ~nd agencies concerned as may' be nec<'!ssary to
e n sure t he prudent, wise, effective and efficient utilization of
the sp ecial .funds established under t.his Act: Provided, That
JO~ MANUEL -c _ VTLL R JR.
the S~crctary of the DPWH shall prepare t.he portior. of t he · "' Speaker of the Ho ·e·
i:npleroenting ru!es and regulations pertriining to the Special of Repre..-:entative.
R.o:.d S u ppor t Fund, the Speci::il Loca l Road Fund, and the
Special Road Safety Fund, a nd the Secretary of t he DOTC
shall prepare th e portion of the impl ema·n tirig rulP.s and Thi~ Act which is a co1rnolidntion of House Bill No 6863
rcgulat.ions pert~ining t.o t.h e collect.ion of the MVUC state.q and Senate ~ill No. l830 was finaJly passed by the Ho~se of
under Section 3 of this Act and on the disposition of the monies Representatives a nti the Senate on June 6, 2000 and A ·1
-aC::crni 1~g to the Special Vehicle Poll ution Cont~ol Fund. 11, 2000, respectively. · pn

Sr~C- 10. Prohib1:tion Aga.ins l the lmposi:ti-O!L of Sim ~la r

C harge on Users of M.o lor Vehi.clr.s. - No oLher tax-,
foe or a ny
othe r charge of simi1ar nat.ure, as the· Motoi· Vehicle User's
Charge shall be imposed by any politi<.:al"subdivision or uni t in
the ('.()untry.
_.
~~~___,
.
OSCAR~~S ~jE
·
P.NAZARENO
Secretary of the Senate
.er tary General
Ho se
~~

Representatives

This provision s ha ll ?.pply t.o all motor ve hicles, induding l ~21~

I Approved:
Lricycles, motorized pedicabs and ''trisikads". !

SEC. l L Repealing Clause_ - Except as provided 1.mde.r

Section ~~ he reof. ~11 other provisions of Executive Order No.
43, series of J 986, and Section 8 of Republic Act Nn. 4136, as
I
i
' c::<f::.~
a mended by Ba:.as Pambansa Bilang 74, nod all at.her laws, _ JOSEPH E. ESTRADA
o:::-tlcrs, issmrnces, cir culars, rule ~ ~nd regulations or part.r> President af the Philippines
tb·~ n::of, which are incons~stcnt with the provisions of this Act
arc hereby repea led or modified accordinp,ly. o.
f>~c- 12. Separa.bi.lity CJrm.<;r.;. --~lf :my p~1wir;ion of this
Act. i.s declared unconstitut.i.on;i.l or invalid. othe r p;:irt.s or
provis ions hereof not affect';!cl Lh"!rehy ::;hn l1 continue tn he in
full force a nd effect. · ·
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i· W.£DmsriA~'/1·ANuARY :25.'~olf· ~
!·N'\~..,· W,WW.INQUIRERNET ' ..
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