MANILA, Philippines — Local government units (LGUs) are now banned from collecting fees and taxes for cross-border transport of goods.
The Departments of the Interior and Local Government (DILG) and Finance (DOF) and Anti-Red Tape Authority (ARTA) signed yesterday Joint Memorandum Circular No. 2021-01.
The memorandum prohibits LGUs from imposing “fees and taxes on goods passing through their jurisdictions in the guise of charges for toll, sticker, discharging, delivery or mayor’s permit fees.”
“We remind local governments of the limitations on the imposition of fees and other charges on the transportation of goods in their areas,” Finance Undersecretary Antonette Tionko said.
Violators will be subpoenaed, investigated and may face charges for violating Republic Act 11032 or the Ease of Doing Business and Efficient Delivery of Government Services Act.
“By bridging public service to answer to the needs of the people, we are doing our mandate by implementing efficient government service delivery,” ARTA director general Jeremiah Belgica said.
The DILG said there are at least 30 LGUs that have local orders imposing fees and taxes on truckers.
The department is reviewing these ordinances.
“LGUs violating the memorandum will be sanctioned. We can also ask the ombudsman and the courts if there is basis for filing of cases,” Interior Secretary Eduardo Año said.
A Joint Oversight Committee composed of the DILG, DOF, ARTA and public and private stakeholders is tasked to monitor the implementation of the memorandum.
Meanwhile, Labor Secretary Silvestre Bello III said his department is inclined to reject the proposal of the Philippine National Police to require a national police clearance for workers, adding that it goes against the principle of ease of doing business in government.
According to Bello, the initial response of the stakeholders to the proposal is unfavorable.
“But it is not yet final,” he said. – Czeriza Valencia, Elizabeth Marcelo, Sheila Crisostomo