Wednesday, January 17, 2018

Taxes Under Special Law - MOTOR VEHICLE USER’S CHARGE (MVUC)

Each application for registration of motor vehicles shall be accompanied by an annual Motor Vehicle User’s Charge (MVUC) pursuant to Republic Act (RA) No. 8794. For private passenger cars registered as of July 16, 2000 has a different rate. (it will be excluded in this article.)

Private Vehicle and Government Vehicles

Passenger Cars
Amount (PHP)
Light (GVW up to 1,600 kg)  1,600
Medium (GVW > 1,601-2,300 kg)  3,600
Heavy (GVW > 2,300 kg)  8,000
Utility Vehicles
GVW up to 2,700 kg 2,000
GVW > 2,700 to 4,500 kg 2,000 + 0.40 x GVW in excess of 2,700 kg
Sports Utility Vehicles (SUV)
GVW up to 2,700 kg 2,300
GVW > 2,700 to 4,500 kg 2,300 + 0.46 x GVW in excess of 2,700 kg
Motorcycles
Without sidecars 240
With sidecars 300
Buses and Trucks
GVW > 4,500 kg 1,800 + 0.24 x GVW in excess of 2,700 kg
Trailers
GVW > 4,500 kg 0.24 x GVW




For Hire
Passenger Cars
Amount (PHP)
Light (GVW up to 1,600 kg) 900
Medium (GVW > 1,601-2,300 kg) 1,800
Heavy (GVW > 2,300 kg) 5,000
Utility Vehicles
GVW > 2,700 to 4,500 kg0.30 x GVW
Sports Utility Vehicles (SUV)
GVW up to 2,700 kg2,300
GVW > 2,700 to 4,500 kg2,300 + 0.46 x GVW in excess of 2,700 kg
Motorcycles
Without sidecars300
With sidecars300
Buses and Trucks
GVW > 4,500 kg1,800 + 0.24 x GVW in excess of 2,700 kg
Trailers
GVW > 4,500 kg0.24 x GVW


Initial Registration
Under the Department of Transportation and Communication’s (DOTC) Administrative Order No. 010-2005, all brand new motor vehicles are required to have an initial registration which shall be valid and effective for three (3) years from its registration. Such initial registration shall require the Certificate of Conformity (COC), issued by the Department of Environment and Natural Resources (DENR), and the Compulsory Third Party Liability insurance policy valid for three (3) years. The rates of the MVUC as set forth and imposed under RA 8794 shall be collected from the owner of the covered motor vehicles for the registration of the said units.

Anti-Overloading Act
There are laws and memorandums which regulating overloading of trucks and trailers. It's based on the GVW and violation penalty is 25% of MVUC. 5% overloading is tolerated.

Notes: I can't find anti-overloading law on private passenger cars but there is a penalty on overloading passenger more than regular based on MMDA website.

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