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The Anti-Red Tape Authority filed a grave misconduct suit against Meycauayan City mayor Henry Villarica for the continued illegal collection of pass-through fees from truckers passing national roads
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ARTA said Villarica violated a presidential order prohibiting local governments from collecting pass-through or other fees from all types of vehicles transporting goods on national roads
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Villarica reportedly ignored multiple warnings from both ARTA and the Department of the Interior and Local Government to halt the implementation of its truck ban ordinance
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Beyond the Office of the Ombudsman investigation, ARTA is seeking the preventive suspension of Villarica while a preliminary investigation determines if the case should proceed to the Sandiganbayan
The Anti-Red Tape Authority (ARTA) filed grave misconduct charge against Meycauayan City mayor Henry Villarica for the continued illegal collection of pass-through fees from truckers passing national roads within its locality.
ARTA, in a statement, said Villarica violated Executive Order (EO) No. 41 series of 2023, which prohibits local government units (LGUs) from collecting pass-through or any other form of fee on national roads from all types of vehicles transporting goods.
Villarica reportedly ignored multiple warnings from both ARTA and the Department of the Interior and Local Government (DILG) to halt the implementation of Meycauayan City Ordinance No. 350 or its truck ban ordinance.
While the local ordinance was intended to manage traffic by restricting heavy cargo trucks, ARTA said its fee-collection component is in direct violation of national law.
Despite an ARTA legal opinion issued in August 2024 and a formal request for review from ARTA Secretary Ernesto Perez, ARTA said the city government persisted in collecting these fees in open defiance of national directives.
The city government also continued the imposition of a P1,000-per-month exemption fee despite repeated inter-agency findings, including those from the ARTA-DTI-DILG clarificatory meeting on September 8, 2025. This exemption even forms part of Meycauayan’s 2025 Citizen’s Charter.
The DILG has since issued Opinion No. 134, s. 2025, stating that Meycauayan City Ordinance No. 350 runs contrary to the national mandates of Eo No. 41.
The investigation was further bolstered by field validations that uncovered specific evidence of unauthorized collections, ARTA said.
ARTA elevated the case to the Office of the Ombudsman, citing the discovery of prima facie evidence to support formal charges. Beyond the investigation, ARTA is also seeking the preventive suspension of Villarica while a preliminary investigation determines if the case should proceed to the Sandiganbayan.
Stakeholders, especially truckers, have been complaining for years about the collection of pass-through fees from cargo trucks by every LGU, especially within Metro Manila.
READ: 40 LGUs suspend collection of pass-through fees
DILG has consistently stated since 2006 — through eight memorandum circulars — that collecting pass-through fees is illegal, with the most recent one being Memorandum Circular (MC) No. 2018-033 in 2018.
In April 2021, ARTA, DILG, and the Department of Finance also signed Joint Memorandum Circular No. 2021-01, which outlines the rules for suspending illegal fees and taxes imposed by LGUs on the transportation of goods and products. This circular reaffirms the principles set out in MC 2018-033.
EO No. 41 prohibits LGUs from collecting toll fees and other charges for all motor vehicles transporting goods or merchandise while passing through any national roads and other roads not constructed and funded by them.
The EO clarifies that according to Section 133(e) of Republic Act (RA) No. 7160, also known as the Local Government Code of 1991, local governments cannot impose taxes, fees, charges, or any other levies on goods transported through their areas under the pretense of charges, wharfage, bridge tolls, or any other form of taxation on such goods or merchandise.
It says, “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.”
READ: Implementing rules for ban on pass-through fees released, take effect immediately
Joint Administrative Order No. 24-01 was issued in 2024 providing the implementing rules and regulations of EO No. 41.— Roumina Pablo
