DILG to LGUs: Don't charge transiting vehicles

CEBU, Philippines - The Department of Interior and Local Government told local government units across the country to stop collecting “illegal pass-through” fees from motor vehicles from other LGUs that pass through their jurisdiction.

In a gathering in Malacañang last September 14, representatives of the transport sector complained that some LGUs still impose and collect fees and taxes against motor vehicles like delivery trucks that come from other areas.

Based on the Local Government Code, the imposition, DILG said, is beyond the scope of the taxing powers of the LGU.

Pursuant to Section 133(e) of the Code, local chief executives are enjoined to refrain from enforcing any existing ordinance authorizing the levy of fees and taxes on inter-province transport of goods, regulatory fees from passengers in local ports, and other additional taxes, fees or charges in any form upon transporting goods and passengers.

“The President instructed the Department to ensure that LGUs are not imposing and collecting pass through fees and other illegal collections,” said DILG Secretary Jesse Robredo in Memorandum Circular No. 2011-151 dated Oct. 12, which was furnished to all regional directors.

In Central Visayas, DILG Regional Director Pedro Noval Jr. said he already disseminated the memorandum to all LGUs under his watch, including Cebu.

No incident of imposition of fees has surfaced here, so far, but Noval still urged the public to report to DILG any incident involving a local government imposing various fees, taxes, and other charges on goods and passengers being carried or transported into or out of, or passing through their respective localities.

Reports reaching the DILG’s Bureau of Local Government Supervision (BLGS) showed that LGUs that levy such taxes, fees and charges are those with ports, wharfs, or those localities serving as transshipment and traversing points in the delivery of goods and merchandise.

BLGS Director Rolando Acosta said the primary reason for the prohibition of said tax imposition is its ability to affect the free flow of commerce and causes an increase in the cost of goods and merchandise, as well as transportation fees. (FREEMAN)