Marcos halts 'pass-through' fees on goods transport

MANILA, Philippines — President Ferdinand Marcos Jr. ordered the local government units (LGUs) to stop collecting "pass-through fees" to improve the transportation of goods across the country.

Executive Order No. 41, signed by Executive Secretary Lucas Bersamin on September 25, mandates that all LGUs must refrain from imposing toll fees and charges on motor vehicles carrying goods or merchandise traversing national roads and other routes not financed by the respective LGUs.

“In the interest of public welfare, all LGUs are further strongly urged to suspend or discontinue the collection of fees such as, but not limited to, sticker fees, discharging fees, delivery fees, market fees, toll fees, entry fees, or Mayor’s Permit fees, that are imposed upon all motor vehicles transporting goods and passing through any local public roads constructed and funded by said LGUs,” the EO read.

The reason for the order is to reduce the extra costs that the fees add to transporting goods, which often end up making products more expensive for consumers.

“In order to uphold the welfare and advance the best interest of the Filipino people, it is the overarching policy of the Administration to consolidate all essential components within the value and supply chain, and reduce the costs of food logistics, which play a pivotal role in effectively tempering the inflation rate in the country,” the EO said.

Reducing transportation and logistics costs is a key part of the Marcos administration's Eight-Point Socioeconomic Agenda, the EO added.

The Department of Interior and Local Government will collect copies of existing LGU ordinances about pass-through fees within 30 days. Other government agencies will review these ordinances to make sure they follow the law.

The order will take effect immediately upon its publication on the Official Gazette or any newspaper with general circulation.

To ensure compliance with the EO, public officials or employees failing to adhere to its provisions may face administrative and disciplinary sanctions.