THE House Committee on Transportation chaired by Antipolo City Rep. Romeo Acop on Tuesday met with the Land Transportation Office (LTO) to hear about the latter’s ruling regarding the immediate transfer of motor vehicle ownership with existing registration.
Many motorists expressed concern and complaints over LTO Administrative Order VDM 2024-046 due to implementation issues and the short compliance period.
Under said AO, all motor vehicle and motorcycle owners are required to disclose or record ownership transfers to the LTO within 20 working days of the sale, donation or transfer.
A P20,000 fine shall be levied for failure to report such transfers. Moreover, LTO will impose a P40,000 penalty for failure to both report and transfer ownership.
LTO Executive Director Atty. Greg Pua Jr. told the panel that they already issued a suspension of the AO last October 23 to enhance its implementation, extend the compliance period and improve information dissemination.
He reported that they already held two public consultations to gather insights, including challenges in transferring vehicle ownership, especially for repossessed or mortgaged vehicles when the first owner cannot be located.
“We issued a suspension of AO VDM 2024-046 for better implementation, as well as to lengthen the compliance period and allow more time to widen the information dissemination of the same,” Pua said.
On October 30, the LTO held a public consultation which highlighted issues with transferring ownership, especially for repossessed or mortgaged vehicles when the first owner is missing. The 20-day transfer period was seen as too short, and many transport groups were unaware of the transfer requirement.
An October 6 consultation with financial institutions and dealers revealed varied acquisition methods for vehicles and motorcycles, and noted challenges for dealers in repossessing motorcycles. Procedures for transferring ownership of vehicles from estate settlements were also discussed.
During the November 6 public consultation, 1-Rider Partylist Rep. Ramon Gutierrez suggested that the LTO shorten its processes and to consider lower penalties.
The LTO is currently reviewing feedback from stakeholders and plans to conduct further public consultations in other provinces to improve the administrative order.
1-Rider Partylist Rep. Bonifacio Bosita also suggested that vehicles should be registered under accredited dealers instead of buyers to ensure dealer protection, and recommended a special lane at the LTO for ownership transfers.
Acop also proposed to improve the guidelines to eliminate vagueness and urged the LTO to consider the impact on those who will be affected.
“LTO, pwede bang pag-aralan niyo na kung gumawa kayo ng administrative order, you also consider ‘yong maaapektuhan? It is not enough na nag-conduct kayo ng public consultation,” Acop said.
The committee then approved the unnumbered substitute bill proposing the Magna Carta of Tricycle Drivers and Operators, as well as House Bills 10808, 10991 on establishing LTO extension and district offices in Eastern Samar and Davao Oriental. HB 10880 was also approved, converting the Maritime Industry Authority satellite office into a regular extension office in Eastern Samar.