WHEREAS, there is a need to rationalize the structure of the tax on private motor vehicles by basing the same on the ability to pay of the owners thereof as indicated by the type and age of their vehicles;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:

SECTION 1. The owners of motor vehicles classified as "private" shall, upon every annual registration, pay a private motor vehicle tax in accordance with following schedule :

Age

Light (0-1600cc)

Medium (1601cc- 2800cc)

Heavy (2801cc & over)

Utility Vehicle (2700 Kg GW and below)

Current	P1000	P3000	P6000	P1000
1 year old	1000	3000	6000	1000
2 years old	1000	3000	6000	1000
3 years old	1000	3000	6000	1000
4 years old	1000	2400	6000	1000
5 years old	1000	2400	6000	1000
Over 5 years old	700	1200	2800	900

SECTION 2. The Minister of Transportation and Communications shall issue the necessary rules and regulations to implement the provisions of this Executive Order.

SECTION 3. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 4. This Executive Order shall take effect on January 1, 1987.

Done in the City of Manila, this 22nd day of August in the year of Our Lord, nineteen hundred and eighty-six.


By the President:

(Sgd.) JOKER P. ARROYO
Executive Secretary