In 2000, the Republic Act 8794, otherwise known as the Motor Vehicle User Charge (MVUC) or the Anti-Overloading Act of the Philippines was originally enacted to provide for the annual motor vehicle registration fees by repealing the registration fee and the Private Motor Vehicle Tax.
Just recently, however, the House of Representatives House Ways and Means Committee, proposed an increase in the Land Transportation Office Motor Vehicle User’s Charge (LTO MVUC) to be paid to the LTO. Along with the request for increase in MVUC charges came the change in the name from the original Motor Vehicle User’s Charge (MVUC) to Motor Vehicle Road User’s Tax (MVRUT). Before discussing the proposed changes, however, let’s look into what the original RA 8794 or Anti-Overloading Act, also known as the MVUC Law does say about these fees.
What is Republic Act 8794
The Republic Act 8794, originally entitled “An Act Imposing a Motor Vehicle User’s Charge on Owners of all Types of Motor Vehicle and for Other Purposes”, is also known as the Anti-Overloading Act, the Motor Vehicle User’s Charge (MVUC) or the road users’ tax. Recently, a house bill proposed changing the name to Motor Vehicle Road User’s Tax (MVRUT), too. After all, RA 8794 is a law designed to collect mandatory fees from vehicle owners in the country, regardless if the vehicle is for private use or for hire, to finance the maintenance of national and provincial roads. Its other objectives include ridding the roads of overloaded trucks and addressing the air pollution caused by vehicles because they present direct danger against other vehicles plying the roads.
The law states that a motor vehicle user charge (MVUC) is to be collected upon vehicle registration primarily for the purpose of exclusively funding of the road maintenance and the improvement of the road drainage, the installation of adequate and efficient traffic lights and road safety devices, and the air pollution control programs. As such, it is directly proportional to the vehicle type, gross vehicle weight (GVW), and year model, among others. The law also offers provisions for classification and reclassification of motor vehicles, penalties for overloading, as well as the disposition of the collected funds.
RA 8794: LTO MVUC Rates and Fees
Having said that, here’s the list of MVUC fees you’d probably encounter when you go to LTO for your vehicle registration transactions as detailed on Section 3 of RA 8794. It was originally detailed in Section 8 of Republic Act No. 4136, amended by Batas Pambansa Bilang 74, and the Private Motor Vehicle Tax under Executive Order No. 43, series of 1986, and is supposed to be imposed on all vehicles as follows:
MVUC Rates
According to the provisions of the RA 8794, the rates for the MVUC for the different vehicle types and weights to be paid are as follows:
For private passenger cars
- Fist year: The private motor vehicle tax under Executive Order No. 43, series of 1986, plus twenty-five percent (25%) of the base rate
- Second year: The private motor vehicle tax plus fifty percent (50%) of the base rate
- Third year: The private motor vehicle tax plus seventy five percent (75%) of the base rate,
- Fourth year and beyond: The private motor vehicle tax plus one hundred percent (100%) of the base rate
For sports utility vehicles
- The fee would fifteen percent (15%) higher than the MVUC set for private utility vehicles
For motorcycles for hire with sidecars
- No more than three-hundred pesos (₱300.00)
Do note that while the rates contained in section 3 may be adjusted, it shall not exceed the annual rates of the Consumer Price Index (CPI).
For the specific vehicle types and weights, here are the schedule of fees as provided for by RA 8794:
MVUC Fee for Private and Government Car Registration or Renewal
Car Type And Weight: Motorcycle without sidecar
MVUC: ₱240.00
Car Type And Weight: Motorcycle with sidecar
MVUC: ₱300.00
Car Type And Weight: Light passenger cars (Up to 1,600 kg)
MVUC: ₱1,600.00
Car Type And Weight: Medium passenger cars (1,601 kg to 2,300 kg)
MVUC: ₱3,600.00
Car Type And Weight: Heavy passenger cars (2,301 kg and above)
MVUC: ₱8,000.00
Car Type And Weight: Utility vehicles (Up to 2,700 kg)
MVUC: ₱2,000.00
Car Type And Weight: Utility vehicles (2,701 kg to 4,500 kg)
MVUC: ₱2,000.00 + 0.40 x gross vehicle weight (GVW) in excess of 2,700 kg
Car Type And Weight: SUVs (1991 models and above) (Up to 2,700 kg)
MVUC: ₱2,300.00
Car Type And Weight: SUVs (1991 models and above) (2,701 kg to 4,500 kg)
MVUC: ₱2,300.00 + 0.46 x GVW in excess of 2,700 kg
Car Type And Weight: Trucks and truck buses (4,501 kg and above)
MVUC: ₱1,800.00 + 0.24 x GVW in excess of 2,700 kg
Car Type And Weight: Trailers (4,501 kg and above)
MVUC: ₱0.24 x GVW
MVUC Fee for Aged Private Vehicles
Car Type And Weight: Light cars (models from 1995 to 2000) (Maximum of 1,600 kg)
MVUC: ₱2,000.00
Car Type And Weight: Light cars (models from 1994 and older) (Maximum of 1,600 kg)
MVUC: ₱1,400.00
Car Type And Weight: Medium cars (models from 1997 to 2000) (1,601 kg to 2,300 kg)
MVUC: ₱6,000.00
Car Type And Weight: Medium cars (models from 1995 and 1996) (1,601 kg to 2,300 kg)
MVUC: ₱4,800.00
Car Type And Weight: Medium cars (models from 1994 and older) (1,601 kg to 2,300 kg)
MVUC: ₱2,400.00
Car Type And Weight: Heavy cars (model from 1994 and older) (2,301 kg and above)
MVUC: ₱12,000.00
Car Type And Weight: Heavy cars (models from 1994 and older) (2,301 kg and above)
MVUC: ₱5,600.00
MVUC Fee for For Hire Vehicles
Car Type And Weight: Motorcycles/Tricycles
MVUC: ₱300.00
Car Type And Weight: Light passenger cars (Up to 1,600 kg)
MVUC: ₱900.00
Car Type And Weight: Medium passenger cars (1,601 kg to 2,300 kg)
MVUC: ₱1,800.00
Car Type And Weight: Heavy passenger cars (2,301 kg and above)
MVUC: ₱5,000.00
Car Type And Weight: Utility vehicles (Up to 4,500 kg)
MVUC: ₱0.30 x GVW
Car Type And Weight: Sport Utility Vehicles (SUVs) (Up to 2,700 kg)
MVUC: ₱2,300.00
Car Type And Weight: Sport Utility Vehicles (SUVs) (2,701 kg to 4,500 kg)
MVUC: ₱2,300.00 + 0.46 x GVW in excess of 2,700 kg
Car Type And Weight: Truck buses (4,501 kg and above)
MVUC: ₱0.30 x GVW
Car Type And Weight: Trailers (4,501 kg and above)
MVUC: ₱0.24 x GVW
Penalties and Charges Related to MVUC
For vehicles beyond the registration week
Fee: ₱200.00
Beyond the registration month but not over 12 months
Fee: 50% of the MVUC rate
Over 12 months beyond the registration week but without apprehension for violation of the LTO laws, rules, and regulation during the period of delinquency
Fee: 50% of the MVUC rate + renewal
More than 12 months beyond the registration week but with apprehension for violation of LTO laws, rules, and regulations during the period of delinquency (Circular No. 83C-DIR-20)
Fee: 50% of the MVUC rate + renewal for every year of delinquency
Overloading, provided that no axle exceeds 13,500 kg
Fee: 25% of the MVUC at time of infringement for trucks and trailers with a load exceeding more than 5% of registered GVW
RA 8794: Disposition of Collected Funds
All the funds collected under this law shall be deposited in four (4) special trust accounts in the National Treasury, namely: (1) Special Road Support Fund; (2) Special Local Road Fund; (3) Special Road Safety Fund; and (4) Special Vehicle Pollution Control Fund.
The distribution of collections will be as follows:
- Eighty percent (80%) shall be allotted to and placed in the Special Road Support Fund; Seventy percent (70%) of which is to be used for the maintenance of, and the improvement of drainage of national primary roads, while the remaining thirty- percent (30%) will be allocated and used for the maintenance and improvement of drainage of national secondary roads throughout the country.
- Five percent (5%) shall be allotted to and placed in the Special Local Road Fund which will be apportioned to provincial and city governments according to vehicle population and size of the road network per jurisdictions, exclusively for the maintenance of local roads, traffic management and road safety devices.
- Seven and one half percent (7.5%) shall be allotted to and placed in the Special Vehicle Pollution Control Fund.
Note: The Special Road Support Fund, the Special Local Road Fund shall be under the Department of Public Works and Highways (DPWH), whereas the Special Vehicle Pollution Control Fund shall be controlled by the Department of Transportation (DOTr). A Road Board manages the utilization of the special funds and it is made up of seven (7) members, with the secretary of the DPWH as exofficio head, and the secretaries of the Department of Finance, Budget and management, and the Transportation department as ex officio members. The remaining three (3) members shall come from transport and motorist organizations, which have been in existence and active for at least last five (5) years, They shall be appointed by the president for a term of two (2) years each and are selected upon the recommendation of the secretaries of the DPWH and the DOTr.
Frequently Asked Questions (FAQs)
Here are some of the most common questions and answers about RA 8794 and the LTO MVUC:
1. What is MVUC?
MVUC stands for LTO’s Motor Vehicle User’s Charge. It refers to the various fees and charges collected by LTO during motor vehicle registration to help finance the maintenance of national and provincial roads and address the air pollution caused by vehicles.
2. How much do I need to pay as a fine for late registration?
LTO imposes a ₱200.00 weekly fine for late registrations but if the late payment is made after a month, the fine becomes 50% of the MVUC.
3. What is LTO’s context for aged private vehicles?
LTO’s context when it comes to aged private vehicles, include:
- Current – 2000
- One year old – 1999
- Two years old – 1998
- Three years old – 1997
- Four years old – 1996
- Five years old – 1995
- Over five years old – 1994 and older
4. What does the law say about overloading?
According to RA 8794, overloading entails a penalty equivalent to twenty five percent (25%) of the MVUC and will be imposed on trucks and trailers for loading beyond their prescribed gross vehicle weight: provided that no axle load shall exceed thirteen thousand five hundred kilograms (13,5000 kgs).
5. What is the maximum allowable gross vehicle weight (MAGVW) for trucks?
According to the law, the gross vehicle weight is 41,500 kilograms for 12-2 and 42,000 kg for 12-3. However, the Confederation of Truckers Association of the Philippines, Inc. (CTAP) has been calling for revision and increase of the MAGVW for code 12-2 from 41,500 kilograms to 53,500 kg, and for code 12-3 from 42,000 kg to 54,000 kg as “there would not be any transport equipment anywhere in the world that will satisfy the gross vehicle weight of 41,500 kilograms for 12-2 and 42,000 kg for 12-3.”
Summary
The Republic Act 8794, or the Anti-Overloading Act is just one of the many rules imposed by the Land Transportation Office (LTO) tha entails billing car owners. The fees may be collected for good purposes as it is a means to generate funds for the agency to finance the government-managed infrastructures like the national and provincial roads and advocacies like air pollution control.
The RA 8794 is also known as the LTO MVUC or the road users’ tax, due to the purpose of its collection. It is a mandatory fee paid upon registration with the amount that varies depending on various factors like motor vehicle type, gross vehicle weight (GVW), and year model, among others. There are also other fees associated with the MVUC, and it pays for car owners, drivers, and operators to know about them, so they can prepare the funds they need in advance. After all car ownership entails a lot of expenses and it is imperative for the owners to be prepared for them even before they think about buying one.