The Anti-Red Tape Authority (Arta), along with other government agencies, joined forces to ban the illegal collection of fees and taxes by the local government units (LGUs) for the transport of goods.
On Wednesday, Arta, the Department of the Interior and Local Government (DILG) and the Department of Finance (DOF) issued Joint Memorandum Circular (JMC) 2021-01 or the Omnibus Guidelines on the Suspension of LGU Imposition and Collection of Illegal Fees and Taxes Relative to the Transport of Goods and Product.
Arta Deputy Director General Ernesto V. Perez said during the virtual ceremony that stakeholders have been flagging the authorities about the illegal costs imposed on the transport of goods despite the existence of several DILG issuances prohibiting it.
Perez noted that illegal fees come in different forms, such as sticker fees, entry fees, recharging fee, and mayor’s fees, among others.
“The Philippine logistics sector is facing a regulatory environment that stifles rather than encourages efficiency and competitiveness. Due to the country’s archipelagic nature and inconsistent regulations, the Philippines has one of the highest logistics costs among the member-states of the Association of Southeast Asian Nation,” the Arta official said.
With this, Perez said the logistics sector has become one of the priorities for streamlining.
The JMC stresses the limitations of the LGUs in collecting fees, taxes and other charges on transporting goods carried into or out or passing through their territorial jurisdictions under the Local Government Code of 1991.
It enjoins all local chief executives to refrain from enforcing “any existing ordinance authorizing the levy of fees and taxes on inter-province transport of goods or merchandise, regulatory fees in local ports, and other additional taxes, fees or charges in any form upon the transport of goods or merchandise.”
The current local ordinances on pass-through fees and taxes for the transport of goods and products are subject to regulatory impact assessment as per the JMC.
Arta, under the JMC, can conduct its own regulatory review of the subject ordinance. It is tasked with assisting the DILG in implementing the order; and investigating and filing appropriate charges against erring government officials.
The JMC noted that noncompliance “shall be dealt with in accordance with pertinent laws, rules and regulations.”
Finance Undersecretary Antonette C. Tionko said they are hoping that the JMC will be able to address the recurring complaints on the imposition of local taxes, fees and charges that disrupt the transportation of goods and products, which is critical especially at this time of the Covid-19 pandemic.
“So hopefully this initiative will give assurance to the sectors involved in the movement of goods and products that such concerns will not add to the challenges they face in the midst of the Covid-19 pandemic as these activities are vital to facilitate trade and commerce to help businesses and essential service providers deliver their products to customers and clients,” Tionko said.
“With the cooperation of the local governments, we want to address disruptions that would affect economic activities that are critical in this time of the pandemic and that will support response, and recovery measures.”
Under the JMC, Tionko said the DOF through the Bureau of Local Government Finance is tasked to monitor the compliance of local treasures during the conduct of treasury evaluations and to provide technical assistance to LGUs in updating and amending the tax ordinances.
Arta Director General Jeremiah B. Belgica encouraged the public to report to the authorities instances wherein LGUs impose and collect illegal charges.
“By lending us your voice, we are able to know what your pains and pangs are so that we can create better regulations and improved services.”
With Bernadette D. Nicolas