Quotas on new cars’ registration backed


By Rose de la Cruz


Rep. Harlin Neil Abayon of AANGAT Tayo Partylist and assistant minority leader is proposing the adoption by the Land Transportation Office of a quota system for the registration of new cars to ease road congestion and heavy traffic, which is commonly plaguing Metro Manila’s thoroughfares.


House Bill No. 7108, or the Motor Vehicle Registration and License Plate Quotas Act of 2018, which he authors, said regulating the number of new cars on the road, via quotas on the number of plates, are needed to be set.


For 2017, he said, the various car dealerships now operating in the Philippines sold 425,672 units of motor vehicles compared to 359,572 in 2016, up by 18.4 percent. These figures do not yet include numbers of smuggled vehicles, which could be in the thousands.


Higher taxes on motor vehicles could have some dampening effect on the double-digit growth in motor vehicle sales, but there would likely be a shift in demand and sales because the TRAIN Law provisions on excise taxes exempted electric vehicles and light commercial vehicles, while excise tax rates for hybrid cars were slashed by half, he said.


Anticipating future increases in the number of vehicles being sold, this bill seeks to regulate the number of vehicles that are added to those already on the roads of our country and it does so by authorizing the Land Transportation Office to set annual and monthly quotas on the number of motor vehicle registrations the LTO approves and on the number of vehicle licenses plates issued, he said.


In setting the annual and monthly quotas, as well as the rules on approval of motor vehicle registrations and license plate applications, the LTO, DPWH, and UP-NCTS shall consider various factors including, but not limited to: a) vehicle roadworthiness; b) road design and capacity; c) owners’ fitness to drive, type of drivers’ license possessed and record of compliance to or violation of traffic laws, rules and regulations; d) payment of the proper taxes, duties and fees on the purchase and sale of motor vehicles and e) financial capacity of the owner to maintain roadworthiness of a motor vehicle as evidenced by annual income tax returns, certificates of income tax withheld, proof of exemption from payment of income tax and certification of approved motor vehicle loan.


The LTO is required to consult with the Department of Public Works and Highways and with the National Center for Transportation Studies of the University of the Philippines. 


The LTO shall review the quotas every five (5) years to determine whether adjustments are necessary.



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Monday, 10 December 2018
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