ILOILO City – The decision by President Ferdinand “Bongbong” Marcos Jr. to suspend the collection of “pass-through” fees does not impact the city and province of Iloilo.
Marcos issued Executive Order (EO) No. 41 on Sept. 25 prohibiting local government units (LGUs) from collecting toll fees and other charges from vehicles transporting goods on national roads unless those roads were funded or built by the LGUs. The aim is to streamline business operations.
LGUs are further restricted from levying fees such as sticker, discharge, delivery, market, toll, entry, and mayor’s permit on vehicles transporting goods on local public roads they’ve funded and constructed.
Mayor Jerry Treñas told Panay News the city government neither implement nor have ever implemented such fees.
“No, we do not and we never have,” he stressed.
Treñas, however, agrees that suspending the pass-through fees can prevent potential increases in commodity market prices.
“These fees contribute to the prices of commodities in the market. If we aim to decrease the prices, such fees should be eliminated,” said Treñas.
He also pointed out that consumers bear the brunt when businesses incur numerous expenses before products reach the market, as these costs are typically passed on.
Gov. Arthur Defensor Jr. also confirmed to Panay News that the provincial government does not impose pass-through fees.
“We don’t levy such fees,” said Defensor. He recounted how during the COVID-19 pandemic, certain LGUs’ collection of delivery fees caused transportation delays.
Governor Defensor opined that commerce progresses more smoothly without these transport fees.
“The flow of commerce has been disrupted, especially during COVID-19 when excessive regulations from various LGUs hindered the delivery of goods,” he said.
Defensor acknowledged, however, that some LGUs in other provinces do impose fees on delivery trucks, primarily because the revenue they gain from this is minimal.
He emphasized that a few of the rare avenues for LGU revenue come from taxing quarries, real estate, and delivery trucks. This is why some LGUs levy pass-through fees, especially when major corporations with headquarters in Metro Manila pay their taxes there.
“Large corporations don’t pay us taxes due to our centralized tax system. If their main office is in Manila, that’s where their taxes go. So, what’s left for us to tax? Delivery trucks, leading many LGUs to derive revenue from them,” Defensor explained.
President Marcos is optimistic that the prohibition will reduce prices of basic commodities in the market and deter smuggling. He highlighted the significance of minimizing transport and logistics expenses.
The President said eliminating stops at various boundaries accelerates transportation, which not only eases business operations but also simplifies the logistics, particularly for transporting produce from farms to markets. (With a report from the pco.gov.ph)/PN
