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40 local government units have suspended the collection of pass-through fees as of June 21 in adherence to Executive Order No. 41
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There are more than 1,300 LGUs nationwide, although not all collect the fee
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Truckers have long complained of LGUs, mainly in Metro Manila, charging pass-through fees
Forty local government units (LGUs) have suspended the collection of pass-through fees as of June 21 in adherence to Executive Order (EO) No. 41, according to the President’s Report to the People (PRP) 2022-2024.
There are more than 1,300 LGUs nationwide, although not all collect the fee.
EO No. 41 was issued last year to ease the delivery and lower the cost of transporting goods and commodities. The EO prohibits the collection of pass-through fees on national roads and urges LGUs to suspend the collection of any form of fees upon all types of vehicles transporting goods under Section 153 or 155 of Republic Act (RA) No. 7160 or the Local Government Code of 1991.
READ: Marcos bans LGU pass-through fees on national roads
Truckers have long complained of LGUs, mainly in Metro Manila, charging fees for passing through.
The EO clarifies that local governments are not allowed to impose taxes, fees, charges, or other levies on goods transported through their areas, in accordance with Section 133(e) of RA 7160.
“To reduce unnecessary business costs, local government units no longer collect fees and charges from motorists transporting goods and merchandise while passing through national roads. On the same principle, LGUs have been strongly urged to refrain from collecting similar fees for the use of local roads,” said President Ferdinand Marcos Jr. during his third State of the Nation Address on July 22.
According to the PRP published by the Office of the President-Presidential Management Staff, the Department of Interior and Local Government “conducts entrapment operations to run after violators of the EO.”
“We continue to call on our LGUs to comply with the EO to support our goal of reducing logistics constraints and enhancing economic efficiency,” the annual report added.
According to EO No. 41, “the unauthorized imposition of pass-through fees has a significant impact on transportation and logistics costs, which are often passed on to consumers, who ultimately bear the burden of paying for the increase in prices of goods and commodities.”
The DILG has consistently deemed these fees illegal since 2006, with the latest ruling being Memorandum Circular No. 2018-033 in 2018.
Last January, Joint Administrative Order (JAO) No. 24-01 was issued to implement EO No. 41.
Under the JAO, all LGUs are prohibited from collecting toll fees and charges upon all motor vehicles transporting goods and merchandise while passing through any national roads and such other roads not constructed and funded by LGUs.
For local roads constructed and funded by LGUs, on the other hand, LGUs are “strongly urged to suspend or discontinue the collection of pass-through fees” in the interest of public welfare.
National roads include primary, secondary, and tertiary roads while local roads include provincial, municipal, city, and barangay roads.
READ: Implementing rules for ban on pass-through fees released, take effect immediately
