DILG orders LGUs to stop imposing taxes, fees for transporting goods

The Department of the Interior and Local Government has enjoined the local government units to stop imposing taxes, fees, and charges on transporting goods.

This came due to reports reaching the said department that some local government units are imposing taxes, fees, and charges on transporting goods carried into or out, or passing through their respective localities.

In answer to this, DILG Secretary Rolando Puno has issued a memorandum circular to local chief executives stipulating that such imposition of fees is beyond the scope of the taxing powers of LGUs.

He cited Section 133(e) of the 1991 Local Government Code which states that "unless otherwise provided herein, the exercise of the taxing powers of provinces, cities, municipalities and barangays shall not extend to the levy of taxes, fees and charges and other imposition upon goods carried into or out of, passing through, the territorial jurisdictions of LGUs in the guise of charges for wharfage, tolls for bridges or otherwise, or other taxes, fees or charges in any form whatsoever upon such goods or merchandise."

In his directive, Puno urged the local officials that have existing ordinances levying fees, taxes and charges which are in the nature of impositions under the same code to refrain from enforcing or implementing the said local measure or to cause the immediate repeal of said ordinances.

While Puno recognizes the power and the need of LGUs to enact tax ordinances as income generating measures, he emphasized that such exercise must be in conformity with pertinent laws. - Cristina Birondo