THE RECENT decision by President Marcos to suspend the collection of “pass-through” fees by local government units (LGUs) on national roads is a welcome move towards streamlining business operations and reducing the cost burden on consumers. While this executive order has implications across the country, it is heartening to note that the city and province of Iloilo have long abstained from imposing such fees.
Executive Order No. 41, issued on Sept.r 25, serves to ease the complexities of doing business by prohibiting LGUs from collecting toll fees and other charges from vehicles transporting goods on national roads, unless those roads were funded or constructed by the LGUs themselves. This move is aimed at eliminating unnecessary expenses and fostering a more efficient flow of commerce.
Mayor Jerry Treñas of Iloilo City has confirmed that the city government has never imposed pass-through fees. This stance aligns with the broader objective of reducing commodity prices by eliminating such fees, which tend to get passed on to consumers. In an era where consumers are already grappling with rising costs, the elimination of these fees is a step in the right direction.
Gov. Arthur Defensor Jr. of Iloilo Province shares this sentiment, affirming that the provincial government also refrains from levying pass-through fees. He highlights how during the COVID-19 pandemic, certain LGUs’ collection of delivery fees led to transportation delays, underscoring the importance of a smoother flow of commerce.
It is important to acknowledge that some LGUs in other provinces impose fees on delivery trucks, often due to the minimal revenue they derive from other sources. As Governor Defensor points out, a centralized tax system in the Philippines means that large corporations primarily pay their taxes in Metro Manila, leaving limited avenues for local revenue generation. Consequently, LGUs in some areas turn to taxing delivery trucks as a source of income.
President Marcos’ optimism regarding the impact of this prohibition is well-founded. By eliminating stops at various boundaries, transportation becomes more efficient, which not only benefits businesses but also simplifies logistics, particularly in transporting agricultural produce from farms to markets. This move can ultimately reduce the prices of essential commodities, making them more accessible to the public.
The decision not to collect pass-through fees in Iloilo City and Province is a testament to the commitment of these LGUs to foster a conducive business environment and ease the financial burden on consumers. President Marcos’ executive order is a step towards ensuring that the benefits of streamlined logistics and reduced costs are felt throughout the country, promoting economic growth and stability.
