THE House of Representatives has approved on third and final reading a bill that seeks to impose an annual vehicle road user’s tax (MVRUT) in place of the present motor vehicle user’s charge (MVUC).

Speaker Ferdinand Martin G. Romualdez said House Bill (HB) No. 9647 exempts small millions of owners of motorcycles and tricycles, or those with engine displacement of up to 400 cubic centimeters (cc), from the new tax, while those owning passenger jeepneys and buses would get a 50-percent discount.

The present law levies an annual MVUC of P150 for a motorcycle without a sidecar and P240 for one with a sidecar.

“Revenues to be raised from the proposed MVRUT will augment funds in the annual national budget for roads, bridges, road safety, drainage, and similar infrastructure projects,” Speaker Romualdez said.

He said part of the collections would be used to subsidize the government’s public utility vehicle (PUV) or jeepney modernization program, which would benefit tens of thousands of operators and drivers.

“More importantly, this program will result in comfort and convenience for millions of passengers, and hopefully, in fewer accidents, injuries, and deaths arising from the use of aging and decrepit PUVs and poor road maintenance and safety,” he stressed.

HB No. 9647 is principally authored by Albay Rep. Joey Salceda, who chairs the House committee on ways and means, and Ako Bicol Party-list Rep. Rizaldy Co, who heads the committee on appropriations.

Under the bill, the proposed MVRUT would be levied on all private and government vehicles.

The bill imposes the following schedule of MVRUT on passenger cars and motorcycles with engine displacement of 400 cc and above:

a. Those with gross vehicle weight (GVW) of up to 1,600 kilograms (kgs) – P2,080 next year, P2,560 in 2025, and P3,040 in 2026.

b. Those with GVW of 1,601 kgs to 2,300 kgs -P4,680 next year, P5,760 in 2025 and P6,840 in 2026.

c. Those with GVW of more than 2,300 kgs – P10,400 in 2024, P12,800 in 2025, and P15,200 in 2026.

Sport utility vehicles and utility vehicles with a GVW of up to 4,500 kgs shall be levied P1.40 per kg of GVW in 2024, P2.50 in 2025, and P3.40 in 2026.

Buses, trucks, and trailers with GVW of more than 4,500 kgs shall be imposed an MVRUT of P1.40 per kg of GVW next year, P2.50 in 2025, and P3.40 in 2026.

The bill provides that the MVRUT on all these vehicles shall be increased by five percent every year starting January 1, 2027.

It defines a “motor vehicle” as “any vehicle propelled by any power other than muscular power using public highways but excepting aircraft, motor boards, road rollers, trolley cars, street sweepers, sprinklers, lawn mowers, bulldozers, graders, forklifts, amphibian trucks, cranes not used in public highways, vehicles which run only on rails or tracks, and tractors, trailers, and traction engines of all kinds used exclusively for agricultural purposes.

A vehicle’s gross vehicle weight “shall mean the measured weight of a motor vehicle as specified by the manufacturer plus the maximum allowable carrying capacity in merchandise, freight or passenger as determined by the assistant secretary of the Land Transportation Office.”

The MVRUT will be collected by the LTO when a vehicle owner registers or renews its registration.

HB No. 9647 further provides that 45 percent of incremental MVRUT collections shall be allocated for the PUV modernization program, particularly for the equity subsidy of operators consolidated as transport cooperatives to acquire Euro-4 compliant PUVs.

Five percent of such increment shall be used for programs to prevent deaths due to road crashes and for accident victims’ assistance, including enhanced drivers’ education, improvement of road management systems by the Department of Transportation (DOTr), and establishment by the Department of Health (DoH) of emergency care facilities in areas with a high incidence of road accidents.

The DOTr, in coordination with the Department of Finance (DoF), DOH, Department of Public Works and Highways, and Land Transportation Franchising and Regulatory Board, shall issue implementing rules and regulations.

The other authors of Bill No. 9647 are Reps. Joey Sarte Salceda, Elizaldy S. Co, Luis Raymund “Lray” F. Villafuerte, Jr., Miguel Luis R.Villafuerte, Tsuyoshi Anthony G. Horibata, Nicolas C. Enciso VIII, Angelo Marcos Barba, Ramon Rodrigo L. Gutierrez, Midy N. Cua, Gus S. Tambunting, Ralph Wendel P. Tulfo, Jocelyn P. Tulfo, Erwin T. Tulfo, Edvic G. Yap, Eric Go Yap, Joseph Gilbert F. Violago, Mikaela Angela B. Suansing, Ernesto M. Dionisio, Jr., Teodorico T. Haresco, Jr., Sonny “SL” L. Lagon, Allan U. Ty, Nelson L. Dayanghirang, Gloria Macapagal-Arroyo, Kristine Singson-Meehan, Juliet Marie de Leon Ferrer, Gerardo P. Valmayor Jr., Ching B. Bernos, John Tracy F. Cagas, Baby Aline Vargas-Alfonso, Rodolfo “Ompong” M. Ordanes, Gerville “Jinky Bitrics” R. Luistro, Ambrosio C. Cruz, Jr., Mary Mitzi L. Cajayon-Uy, Leody “Odie” F. Tarriela, Alfelito “Alfel” M. Bascug, Lordan G. Suan, Sergio C. Dagooc, Wilbert T. Lee, Samuel S. Verzosa, Jr., Wilter Y. Palma, Jose C. Alvarez, Ron P. Salo, Roy M. Loyola, Ray T. Reyes, Luis N. Campos, Jr., Maria Theresa V. Collantes, Lorna C. Silverio, Jose Gay G. Padiernos, Arnie B. Fuentebella, Luisa Lloren Cuaresma, Milagros Aquino-Magsaysay, Salvador A. Pleyto, James “Jojo” A. Ang, Jr., Ruth Mariano-Hernandez, Florida “Rida” P. Robes, Rufus B. Rodriguez, Horacio P. Suansing, Jr., Michael B. Gorriceta, Josephine Veronique “Jaye” R. Lacson-Noel, Solomon R Chungalao, Janice Z. Salimbangon, Peter John D. Calderon, Rosemarie Conejos Panotes, Lianda B. Bolilia, Sandro L. Gonzalez, Isidro T. Ungab, Stephen James T. Tan, Reynolds Michael T. Tan, Florencio Gabriel “Bem” G. Noel, Stella Luz A. Quimbo, Aurelio “Dong” D. Gonzales, Jr., Ronald V. Singson, Rachel Marguerite B. Del Mar, Joseph “Jojo” L. Lara, Fernando T. Cabredo, Raul Angelo “Jil” D. Bongalon, Romeo S. Momo, Sr., Joseph S. Tan, Ricardo S. Cruz, Jr., Ma. Rene Ann Lourdes G. Matibag, Edgar M. Chatto, Edward Vera Perez Maceda, Jaime R. Fresnedi, Zia Alonto Adiong, Faustino Michael Carlos T. Dy III, Arnan C. Panaligan, Sittie Aminah Q. Dimaporo, Jose Manuel F. Alba, Danny A. Domingo, Yevgeny Vincente B. Emano, Jonathan Keith T. Flores, Mario Vittorio “Marvey” A. Mariño, Peter B. Miguel, Felimon M. Espares, Dante S. Garcia, Antonio “Tonypet” T. Albano, Janette L. Garin, Alfred C. Delos Santos, Paul Ruiz Daza, Manuel Jose “Mannix” M. Dalipe, Shernee A. Tan-Tambut, Jurdin Jesus M. Romualdo, Gerardo “Gerryboy” J. Espina, Jr., Ma. Victoria Co-Pilar, Claudine Diana D. Bautista-Lim, Pablo John F. Garcia, Ma. Cynthia K. Chan, Carl Nicolas C. Cari, Loreto B. Acharon, Faustino “Inno” A. Dy V, and Eleanor C. Bulut-Begtang, and former Rep. Arnolfo “Arnie” A. Teves, Jr.