No registration, no travel policy amid PHP 37B in LTO lost revenue

The Land Transportation Office (LTO) Assistant Secretary Atty. Vigor Mendoza II has ordered the strict implementation of ‘No registration, No travel’ policy to compel motorcycle and vehicle owners to renew their registration with the office.

This is after the LTO reported more than PHP 37 billion in revenue losses which the agency pinpoints to a huge decline in registration renewals.

A review of the data of the agency disclosed that 65% of the motor vehicles in the country are classified as delinquent or have expired registration, or those whose owners either failed or deliberately refused to have their motor vehicles registered.

Delinquent motor vehicles refer to motor vehicles that were not registered on their due dates and based on the LTO data, around 24.7 million of the 38.3 million vehicles in the country are classified as delinquent motor vehicles—which means that only around 13.3 million, or 35% of the motor vehicles in the country are registered.

LTO lost PHP 37B in revenues, intensifies ‘no registration, no travel’ image

Translated into revenue losses in terms of registration payment and penalties, Mendoza said around PHP 37.10 billion are to be collected from these delinquent motor vehicle owners.

“Included in this report are delinquent motor vehicles that based on our records have more than 1-year expired registrations. This data does not include those with less than 1 year of expired registrations,” said Mendoza.

The cut-off date of the LTO report is April 2022 or before the use of the Land Transportation Management System (LTMS) for motor vehicle registration.

Mendoza explained that this is alarming data since based on their assessments, delinquent motor vehicles either have problems passing roadworthiness inspections that include emission testing, or do not have insurance coverage.

“In other words, these motor vehicles are threats to road safety. We have to be very strict in implementing the laws on land transportation not only to make it fair to the law-abiding motor vehicle owners but also for the welfare of the road users,” said Mendoza.

“This is in line with the directive of our Department of Transportation Secretary Jaime Bautista to exert more efforts in keeping our roads safe for all users,” he added.

Following the completion of the revenue, it was found out that there are around PHP 37.10 billion collectibles from delinquent motor vehicle owners. Of this figure, around PHP 15.5 billion is the revenue loss for motorcycles, around PHP 18.4 billion for four-wheel vehicles and PHP 3.25 billion for trucks and buses.

Further broken down, the national government will collect PHP 12.36 billion in the registration of all delinquent motor vehicles.