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Manila Bulletin devider Philippines devider National devider Marcos to LGUs: Stop collecting 'pass-through fees' on national roads

Marcos to LGUs: Stop collecting 'pass-through fees' on national roads

Published Sep 29, 2023 12:46 am

At A Glance

  • Marcos says the consumers are ultimately affected by the unauthorized imposition of pass-through fees, which impacts transportation and logistics costs.
  • LGUs are now prohibited from collecting toll fees and charges for all motor vehicles transporting goods or merchandise while passing through roads not constructed and funded by them.
  • The DILG shall collect relevant LGU ordinances within 30 days and the DTI, DOTr, DPWH, ARTA, and DOF shall evaluate them.

President Marcos has ordered all local government units (LGUs) to suspend or discontinue the collection of "pass-through fees," saying they add to logistic costs, which are often passed on to consumers.

EO41.jpg

Marcos made this order through Executive Order (EO) No. 41, signed by Executive Secretary Lucas Bersamin on Sept. 25.

Based on the EO, the President made his decision to ensure the efficient movement of goods across regions and revitalize local industries under the Philippine Development Plan 2023-2028.

The LGUs are now prohibited from collecting toll fees and charges for all motor vehicles transporting goods or merchandise while passing through national roads and other roads not constructed and funded by them.

The local governments are "strongly urged" to suspend or discontinue the collection of fees such as but not limited to:

  • Sticker fees
  • Discharging fees
  • Delivery fees
  • Market fees
  • Toll fees
  • Entry fees
  • Mayor's Permit fees

In his EO, President Marcos emphasized that the unauthorized imposition of pass-through fees significantly impacts transportation and logistics costs, which are often passed to consumers.

He said reducing transport and logistics costs is one of the pillars of his administration's 8-Point Socioeconomic Agenda.

"Consumers, who ultimately bear the burden of paying for the increase in prices of goods and commodities," he said.

"It is the overarching policy of the Administration to consolidate all essential components within the value and supply chain and reduce the costs of food logistics, which play a pivotal role in effectively tempering the inflation rate in the country," he added.

With this, Marcos ordered the Department of Interior and Local Government (DILG) to secure copies of existing ordinances of all LGUs on the collection of pass-through fees imposed on motor vehicles within 30 days from the effectivity of the EO.

The Department of Trade and Industry (DTI), Department of Transportation (DOTr), Department of Public Works and Highways (DPWH), Anti-Red Tape Authority (ARTA), and the Department of Finance (DOF) will evaluate the said ordinances to ensure its compliance with the Local Government Code of 1991.

They shall also formulate and issue necessary guidelines or amend or consolidate existing rules, regulations, or issuances to effectively implement EO 41.

Related Tags

Bongbong Marcos Executive Order pass-through fees President Marcos
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