Some local government units (LGUs) are still allegedly engaged in the illegal charging of so-called pass-through fees from vehicles transporting goods despite the recent directive prohibiting such collection, the Anti-Red Tape Authority (Arta) said.
Arta Director General Jeremiah Belgica said in a news statement on Tuesday that the agency is investigating the matter. It recently launched inspections among LGUs after issuing the Joint Memorandum Circular (JMC) 2021-01 on April 28.
“Sa pag-iikot po ng aming investigation team, nakita po na may mga sumusuway pa rin sa JMC [In our rounds, we observed some are violating the JMC],” Belgica said.
The JMC prohibits LGUs from collecting fees and taxes on the transport of foods and products. The order was signed by the Arta, Department of the Interior and Local Government (DILG) and the Department of Finance (DOF).
These fees include “charges for wharfage, tolls for bridges or otherwise, sticker fee, discharging fee, delivery fee, market fee, toll fee, entry fee, and/or mayor’s permit fee, or other taxes, fees, or charges in any form whatsoever upon such goods or merchandise.”
The directive was released in a bid to improve the country’s logistics sector. It is one of the priority areas of Arta’s National Effort for the Harmonization of Efficient Measures of Inter-related Agencies program.
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 non-compliance “shall be dealt with in accordance with pertinent laws, rules and regulations.”
For its part, 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.