LTO eyes P43B revenue, vehicle registration

LTO logo
LTO logo

THE Land Transportation Office has set a revenue goal of P43 billion this year, up 39 percent from its P31 billion target in 2023.

In a statement, LTO Chief Assistant Secretary Vigor Mendoza II said it was the first time for the agency to aim for such a big increase in annual revenue.

Mendoza said this revenue increase would be achieved through an aggressive drive to persuade delinquent vehicle owners to renew their registration, rather than through a focus on apprehending motorists.

After all, he said the agency prefers to encourage motorists to be law-abiding.

Around 24.7 million motor vehicles, or 65 percent of all motor vehicles in the Philippines, are unregistered, the LTO said at the start of the year.

The LTO makes money by collecting the Motor Vehicle User’s Charge (MVUC), also known as the road user’s tax, which is collected upon the annual vehicle registration.

Depending on the vehicle type, gross vehicle weight and year model, the MVUC may range from P240 for a motorcycle without sidecar to P12,000 for a heavy car (model from 1994 and older, weighing 2,301 kilograms and above).

With millions of vehicles unregistered, it is easy to see how the LTO could collect that many billions of pesos more than it did last year with a successful vehicle registration campaign.

The penalty for driving an unregistered motor vehicle is P10,000.

Fees, charges

The LTO also collects penalties, charges and other fees related to the MVUC.

On the other hand, there are nearly 40 other LTO fees and charges unrelated to the MVUC such as the accreditation fee for manufacturers, assemblers, rebuilders and dealers that range from P500 to P3,000; and fees for change of chassis, change of venue of motor vehicle registration; for replacement of plates and validation stickers, and emission test fees.

These are apart from what the LTO earns from fines for traffic violations such as driving without a valid driver’s license or conductor’s permit, P3,000; reckless driving, P2,000 to P10,000; submission of fake documents in relation to application for a driver’s license, P3,000; failure to wear the prescribed seat belt, P1,000 to P5,000; and failure to wear the standard protective motorcycle helmet or require the back rider to wear such helmet (P1,500 to P10,000), among others.

The LTO website also lists a P1,000 fine for each of the following violations: (a) failure to carry driver’s license, Certificate of Registration, or Official Receipt while driving a motor vehicle; (b) illegal parking, (c) disregarding traffic signs, (d) making illegal turns, and (e) trip cutting, among others.

For smoke belching, the fine is from P2,000 to P6,000.

Then there are various fines for overloading, such as P1,000 for load extending beyond the projected width without permit; and P1,000 as well for operating a passenger bus or truck with cargo exceeding 160 kilograms.

Many violators

The LTO apprehended more than half a million motorists in the country last year for violating road safety and other traffic laws, the agency said last week.

The most common violations were of the Clean Air Act, the Seatbelt Law Act and overloading, the LTO said.

The agency said that from the overloading of motor vehicles alone, especially trucks and trailers, it was able to collect around P42.7 million in penalties in 2023.


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