Implementing rules for ban on pass-through fees released, take effect immediately

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Implementing rules for ban on pass-through fees released, take effect immediately
Image by Peter H from Pixabay
  • The long-awaited implementing rules for Executive Order No. 41 have been released and are now in effect
  • Joint Administrative Order No. 24-01 enforces EO No. 41, which explicitly bans local government units from imposing pass-through fees on vehicles transporting goods on national roads
  • In the case of local roads, LGUs are urged to suspend or discontinue the collection of pass-through fees for the greater good of public welfare
  • A technical working group has been established to assess LGU ordinances related to pass-through fees under Republic Act 7160 and EO 41
  • The TWG has no authority though to amend, repeal, or modify these ordinances; its role is limited to recommending appropriate actions to the President

The implementing rules and regulations (IRR) for Executive Order (EO) No. 41—which prohibits local government units (LGUs) from collecting pass-through fees on national roads and other roads not funded by them—have been released.

Joint Administrative Order (JAO) No. 24-01, effective immediately upon publication on January 20, puts EO No. 41 into action.

The EO, issued last year, bars the collection of pass-through fees on national roads and urges LGUs to suspend any form of fees on vehicles transporting goods, as outlined in Section 153 or 155 of Republic Act (RA) No. 7160, also known as the Local Government Code of 1991.

READ: Marcos bans LGU pass-through fees on national roads

The EO makes it clear that local governments are not allowed to impose taxes, fees, charges, or other levies on goods transported through their areas, following Section 133(e) of RA 7160.

READ: Gov’t fast tracking implementing rules banning pass-through fees

Signed by key government departments, JAO 24-01 covers all LGUs, concerned national government agencies, and all owners/operators of motor vehicles transporting goods or merchandise.

Under the order, LGUs are prohibited from collecting toll fees and charges on motor vehicles transporting goods and merchandise on national roads and other roads not constructed and funded by LGUs.

For LGU-funded local roads, LGUs are “strongly urged to suspend or discontinue the collection of pass-through fees” in consideration of public welfare.

The Department of the Interior and Local Government will direct LGUs to submit their existing ordinances on pass-through fees to a technical working group (TWG) created under JAO 24-01.

The TWG, consisting of various government bodies, will evaluate LGU ordinances on pass-through fees but has no authority to amend, repeal, or modify them. It can only recommend appropriate action to the President.

Failure to adhere to EO 41 and the JAO may result in legal actions and administrative sanctions against public officials, including traffic enforcers, found collecting fees unlawfully.

This move comes in response to long-standing complaints from truckers about LGUs charging pass-through fees, particularly in Metro Manila.

The new regulations reinforce the principles set out in previous memoranda, signaling a concerted effort to put an end to unlawful charges on national roads. — Roumina Pablo