29-9-2023 (MANILA) President Ferdinand Marcos Jr. has issued an executive order instructing local government units (LGUs) to cease collecting “pass-through fees” in an effort to enhance the transportation of goods throughout the Philippines. Executive Order No. 41, signed by Executive Secretary Lucas Bersamin on September 25, directs all LGUs to refrain from imposing toll fees and charges on motor vehicles transporting goods across national roads and other routes not financed by the respective LGUs.
The executive order emphasizes the importance of public welfare and strongly urges all LGUs to suspend or discontinue the collection of various fees, such as sticker fees, discharging fees, delivery fees, market fees, toll fees, entry fees, or Mayor’s Permit fees, on motor vehicles transporting goods and traversing local public roads constructed and funded by the LGUs.
The primary objective of the order is to reduce the additional costs incurred through these fees, which often lead to higher prices for consumers. By consolidating essential components within the value and supply chain, the administration aims to lower food logistics costs, a crucial factor in effectively managing the country’s inflation rate.
The EO underscores the significance of reducing transportation and logistics costs as part of the Marcos administration’s Eight-Point Socioeconomic Agenda.
The Department of Interior and Local Government will gather copies of existing LGU ordinances related to pass-through fees within 30 days. These ordinances will undergo review by other government agencies to ensure compliance with the law.
The executive order will take immediate effect upon its publication in the Official Gazette or any newspaper with general circulation.
To ensure adherence to the EO, public officials or employees failing to comply with its provisions may face administrative and disciplinary sanctions.
