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Newly-appointed Transport Secretary Vivencio ‘Vince’ Dizon has suspended re-implementation of the cashless/contactless transactions along the nation’s toll expressways that was to start on March 15, 2025
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Dizon said he wants to first work with the two private toll operators on ways to make the system more efficient and become ‘almost perfect’ prior to implementation
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Another reason for the suspension is that from Dizon’s perspective, ‘having a cashless system is not pro-poor; it is anti-poor’
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The Alliance of Concerned Truck Owners and Organizations earlier asked DOTr to reconsider re-implementation of the system
Newly-appointed Transport Secretary Vivencio “Vince” Dizon has suspended re-implementation of the cashless/contactless transactions along the nation’s toll expressways that was supposed to start on March 15, 2025.
“I’m telling you right now, I’ve already told TRB [Toll Regulatory Board] to suspend that, cashless (order),” Dizon said in a Malacañang press briefing on February 21.
Dizon said he suspended the re-implementation because he wants to first work with the two private toll operators—Metro Pacific Tollways Corp. and San Miguel Corp.—on ways to make the system more efficient and become “almost perfect” prior to implementation.
“Is there a way to make it more efficient? Okay ba, lahat ba ng barrier gumagana, lahat ba ng RFID nababasa, ‘di ba? Kasi kung may problema pa tayong ganoon at hindi pa halos perpekto ang sistema natin, baka hindi pa panahon para bigla-bigla tayong mag-cashless,” Dizon said.
(Are all barriers working? All RFID can be read? If there are problems and the system hasn’t been almost perfected maybe it’s not yet time to go cashless.)
Another reason for the suspension, he said, is that from his perspective, “having a cashless system is not pro-poor; it is anti-poor,” while noting that not everyone will always be able to maintain load in their RFID account.
He further said there was a need to change motorists’ mindset, and that he understood the need to regulate. But the need to regulate should not result in making the lives of people difficult.
“I asked them [TRB] to stop it. And I’ve already sent word to the toll operators that we’re not going cashless on March 15, and we are not going cashless for the foreseeable future,” he said.
TRB last February 15 announced the re-implementation of the system, after the issuance of the revised implementing rules of a Department of Transportation order lifting the suspension.
The mandatory program intends to optimize use of all toll lanes/plazas through the electronic toll collection (ETC) system.
First implemented in December 2020, the program was suspended due to several operational issues.
The Alliance of Concerned Truck Owners and Organizations (ACTOO) earlier wrote to DOTr requesting to reconsider the re-implementation of the system as they raised their concerns.
In a letter dated February 19, ACTOO said while they acknowledge the potential benefits of the system, they “believe that critical issues remain unresolved such as overcharging, faulty scanners, reloading delays, redundant RFID pre-installation process, to mention a few.”
“Enforcing this mandate prematurely will result in significant disruptions to the transport and logistics industry, the trucking sector, and the motoring public in general,” ACTOO said.
The group noted that the policy has already been suspended multiple times due to persistent concerns and technical problems that it said “remain unaddressed.”
ACTOO also shared there have been instances when truck owners and operators have been unable to install RFIDs on their vehicles due to outstanding debts incurred by previous owners.
“Most of these debts were a result of overcharging by NLEX’s faulty toll collection system, which has been widely criticized for erroneous transactions. It is unjust that new owners are being penalized for discrepancies caused by the previous owner’s transactions, preventing them from obtaining the necessary RFID stickers and effectively barring them from using the expressways,” ACTOO said.
Moreover, corporate accounts have faced significant challenges in acquiring RFID accounts and cards.
ACTOO said many trucking companies that have applied for RFID issuance have yet to receive their RFID cards, directly hindering their ability to comply with the cashless toll collection requirement.
“Without properly issued RFIDs, legitimate businesses and truck operators are placed at a disadvantage, potentially leading to severe operational setbacks and financial losses,” the group said.
Beyond the cargo transport industry, ACTOO noted other motorists have also faced substantial issues due to the RFID system’s inconsistencies.
DOTr Department Order 2020-012 issued in August 2020 mandated toll road concession holders to implement a cashless or contactless toll collection system to prevent the spread of COVID-19, and speed up traffic flow at the facilities, using as legal basis Republic Act No. 11469 or the Bayanihan to Heal as One Act and RA No. 8792 or the Electronic Commerce Act, respectively.
A subsequent addendum to the order issued in January 2021 instituted a transition period to the full cashless transaction program, with cash-accepting lanes maintained at toll plazas and exits. – Roumina Pablo
