Press Release
January 17, 2016

Recto reminds new LTO chief of new law requiring issuance of car plates, stickers in 1 week

Senate President Pro Tempore Ralph Recto is urging newly-appointed Land Transportation Office (LTO) chief Roberto Cabrera to familiarize himself with the "legally-binding" commitments LTO has made in the national budget for 2016 so he would know the agency's deliverables.

Recto explained that the General Appropriations Act (GAA) for 2016, or Republic Act 10717, which President Aquino signed into law on Dec. 22, 2015, outlines LTO's "performance pledges" which it issued in exchange for getting a budget of P2.34 billion this year.

According to Recto, the LTO vowed to accomplish the following :

  • Issue car plates and stickers for brand-new cars issued within seven days.

  • Register old cars, complete with car plates and stickers, within two hours

  • New driver's license processed within four hours

  • Renew old driver's licenses within 60 minutes

"These are targets incorporated in the national budget law. Ito ang pangakong isinabatas na. At kung ano ang nasa batas, ay dapat tuparin. So for the new LTO chief, his mission order is in the GAA," Recto said.

Under current budgeting practices, an agency must attach its "major final outputs " (MFOs) and "performance indicators" to the appropriations it is seeking from Congress, "and such commitments would later form part of the law," Recto explained.

For 2016, the LTO has a P2.34 billion budget, which includes P801.8 million as its share from Road Users Tax collections and P82.8 million from "seat belt fines."

In exchange for this allocation, it spelled out in the national budget service benchmarks or MFOs it must meet.

For vehicle registration, LTO vowed that "90 percent of new registrations completed with MV plates and stickers within seven days and 90 percent of renewals of registration completed with MV plates and stickers within two hours."

On driver licensing, LTO made the commitment that "90 percent of new applications for driver's license acted upon within four hours of receipt of compliant applications and 90 percent of applications for renewal of driver's licenses acted upon within one hour of receipt of compliant applications."

LTO said it expects to register 8,331,490 motor vehicles and issue 5,247,060 driver's licenses and permits this year.

Recto said the "language on LTO's promise on car plates is clear: With registration comes new stickers and plates - within seven days for new cars and two hours for old cars."

"I really hope that the LTO under the leadership of Assistant Secretary Cabrera can make good on this. It is time to end the anomaly of NPA - or No Plate Available - cars running on our roads. We wish him good luck," Recto said.

Recto, however, noted that the "wording of the promissory note on the processing of driver's license is somewhat vague."

"What do you mean by 'acted upon'? Or does it mean that an ID-type driver's license will be given within one hour? Kasi kung tatatakan lang ang receipt ng valid till thy kingdom come, ma-a-achieve nga within the promised time frame, but where's the progress in that? Mahirap ang extension by rubber stamp," Recto asked.

"Kasi kung GAA ang susundin, dapat sa paghihintay ng plaka at lisensya, walang forever," he said.

Recto said LTO's budget and the taxes collected are enough to fund efficiency and good service.

Last year the LTO was forecasted to collect P12.94 billion in Motor Vehicle User's Charge. This is projected to increase to P14.49 billion this year.

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