Local governments urged to suspend ‘pass-through’ fees

The Anti-Red Tape Authority (Arta) has appealed to local governments to comply with President Marcos’ directive ordering the suspension of so-called pass-through fees being collected on motor vehicles transporting goods and consumer products.

Speaking at the Bagong Pilipinas Ngayon news briefing on Friday, Arta Director General Ernesto Perez reminded local governments that they are prohibited under the Local Government Code to impose or collect pass-through fees.

“Sometimes, [local governments] will say that they have an ordinance [imposing pass-through fees] and that based on the Local Government Code, according to them, they have that authority. But we reminded them that even under the Code, it’s prohibited for an [local government] to impose or collect pass-through fees,” Perez said.

Executive Order No. 41, issued on Sept. 28, directed the mandatory suspension of the collection of pass-through fees, which covers all national roads and other roads not constructed or funded by local governments.

For local public roads constructed and funded by local governments, the local governments are only “strongly urged” by the EO, “in the interest of public welfare” to suspend or discontinue the collection of the fees.

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The EO gave the Arta and the interior, trade, transportation, finance and public works departments 30 days to formulate and issue the implementing guidelines.

The Arta chief noted that one of the aims of EO 41 is to curb inflation.

“Pass-through fees are really a burden to the people because when these are collected for cargo trucks and container vans, of course [the traders] will pass the cost to the consumers, eventually it’s the people who suffer,” Perez said.

He said the President has always been consistent in his desire to remove “unnecessary” requirements that cause people suffering.

“These pass-through fees is what make the people suffer because it adds to logistic costs. Actually, it (pass-through fees) constitutes 25 percent, according to studies, in the cost of goods. When the local governments charge pass-through fees, eventually, these are passed on to our consumers,” Perez said. INQ