MMC suspends pass-through fees

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MMC suspends pass-through fees
Metro Manila Council meeting on October 6 where Metro Manila mayors approved a resolution suspending pass-through fees on national roads for vehicles carrying goods. Photo from Metro Manila Development Authority.
  • The Metro Manila Council declared a moratorium on the collection of pass-through fees on national roads
  • MMDA Resolution No. 23-15 is in support of President Ferdinand Marcos, Jr.’s Executive Order No. 41, which directed LGUs to suspend the collection of pass-through fees to ensure efficient movement of goods across regions.
  • The moratorium is expected to generate savings of around ₱2.5 billion for businesses, help temper inflation and lead to higher purchasing power for the public before Christmas

The Metro Manila Council (MMC) on October 6 suspended the collection of pass-through fees on national roads.

The moratorium, contained in Metro Manila Development Authority (MMDA) Resolution No. 23-15, covers all motor vehicles transporting goods while passing through national roads and other roads not constructed and funded by local government units (LGUs).

“In the interest of public welfare, said LGUs are further strongly urged to suspend or discontinue the collection of fees, such as but not limited to, sticker fees, discharging fees, market fees, toll fees, entry fees, or Mayor’s permit fees, that are imposed upon all motor vehicles transporting goods and passing through any local public roads constructed and funded by said LGUs,” the resolution read.

MMC president and San Juan mayor Francis Zamora said the move will help cut prices of commodities. The Department of Trade and Industry estimates the suspension will save businesses around ₱2.5 billion.

Made up of mayors from 16 cities and one municipality in Metro Manila, the MMC oversees the policies of the MMDA.

Ordinances of LGUs in the National Capital Region collecting such fees would be repealed or suspended, said Zamora.

The moratorium is in support of President Ferdinand “Bongbong” Marcos Jr. Executive Order No. 41, which directed LGUs to suspend the collection of pass-through fees to ensure efficient movement of goods across regions.

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

MMDA acting chairman Don Artes said the moratorium will help control inflation, with the public possibly feeling its effects during the holiday season.

Artes is also on board with President Marcos Jr.’s plan to simplify the transport of produce from farms to markets and to ease the public’s burden of inflation.

Interior Secretary Benhur Abalos, who was also attended the Oct 6 meeting, urged other LGUs to review their revenue ordinances in compliance with EO 41.

“This practice has to stop – in the name of public welfare, in the name of food security. There are, of course, other economic factors here that may be beyond our control. But the imposition of pass-through fees is certainly within our control. Kayang kaya natin ito kasama ang puwersa at suporta ng mga pamahalaang lokal (This is something we can easily do with support of our local government units),” Abalos said.

He suggested a review of ordinances covering not only typical charges related to transporting goods but also other fees such as sticker fees, delivery fees, unloading fees and entry fees. “Let’s examine them closely; perhaps we can streamline or rationalize them for the time being,” he said.

“Many of those implementing these pass-through fees are at the barangay level. These fees may seem small individually, in various forms, but when you aggregate them, they have a significant impact on our producers and contribute to price increases,” Abalos said.