Marcos Suspends Local 'Pass-Through' Fees for Goods Transport

President Ferdinand Marcos Jr.  has suspended "pass-through fees" collection among local government units (LGUs) for vehicles transporting goods. Executive Order 41, signed by the President through Executive Secretary Lucas Bersamin on September 25, prohibits LGUs from imposing tolls and charges on goods transport vehicles using national and non-locally funded roads to ensure efficient regional goods movement.

"In the interest of public welfare, all LGUs are strongly urged to cease collecting various fees, including sticker fees, discharging fees, delivery fees, market fees, toll fees, entry fees, or Mayor's Permit fees, from motor vehicles transporting goods on local public roads funded by said LGUs," stated the President in his order.

He further emphasized, "The unauthorized levying of pass-through fees significantly raises transportation and logistics expenses, ultimately affecting consumers who are left to shoulder the elevated costs of goods and commodities."

The President also noted that one of the cornerstones of the administration's 8-Point Socioeconomic Agenda is the reduction of transportation and logistics expenses.

"To safeguard the well-being and advance the best interests of the Filipino people, the Administration's overarching policy is to streamline all crucial elements in the value and supply chain, thereby lowering the expenses related to food logistics. This strategic move plays a vital role in effectively curbing inflation in the nation," emphasized Marcos.

 

He further stated, "Fostering a strong and cooperative partnership between the National Government and LGUs is crucial in addressing inflation's effects and fostering economic prosperity throughout the regions."

To ensure the EO's effective enforcement, the President has instructed the Department of the Interior and Local Government (DILG) to obtain copies of current ordinances from all LGUs pertaining to the imposition of pass-through fees on motor vehicles. These ordinances include those issued under Section 153 and 155 of Republic Act (RA) 7160, commonly known as the Local Government Code of 1991. This action must be completed within 30 days from the EO's enactment.

The EO, made public on Friday, will become operational as soon as it is officially published in the Official Gazette or a widely circulated newspaper.

The Department of Trade and Industry, Department of Transportation, Department of Public Works and Highways, Anti-Red Tape Authority, and the Department of Finance will review the ordinances obtained by the DILG to verify their alignment with RA 7160.

Non-compliance with these directives may result in administrative and disciplinary actions taken against public officials or employees found in violation.

Furthermore, within 30 days of the EO taking effect, the same group of agencies is responsible for crafting and releasing any essential guidelines. They may also amend or consolidate existing rules, regulations, or issuances as necessary to ensure the order's effective implementation.

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