Marcos exempts vehicles carrying goods, merchandise from all ‘pass-through’ fees

President Ferdinand R. Marcos Jr. has directed all local government units or LGUs to exempt vehicles carrying goods and merchandise from any "pass-through fee" passing through national roads.

President Marcos suspended the collection of the following from vehicles carrying goods and merchandise: sticker fees, discharging fees, delivery fees, market fees, toll fees, entry fees, or Mayor's Permit fees, among others.

President Marcos said his decision aims to "reduce the costs of food logistics, which play a pivotal role in effectively tempering the inflation rate in the country."

Under Executive Order No. 41 signed by Executive Secretary Lucas P. Bersamin, the exemption from fees seeks to ensure the efficient movement of goods across regions to revitalize local industries.

"The unauthorized imposition of pass-through fees has a significant impact on transportation and logistics costs, which are often passed on to consumers, who ultimately bear the burden of paying for the increase in prices of goods and commodities," read the executive order.

"Building a robust and collaborative partnership between the National Government and LGUs is essential in effectively addressing the impacts of inflation and promoting economic prosperity across all regions," it added.

President Marcos said the executive order aims to reduce transport and logistics costs as part of his administration's 8-Point Socioeconomic Agenda.

The President has directed the Department of Interior and Local Government (DILG) to secure copies of existing ordinances of all LGUs on the collection of pass-through fees within 30 days from the effectivity of the executive order.

The ordinances to be secured include those issued pursuant to Sections 153 and 155 of Republic Act No. 7160.

The Department of Trade and Industry (DTI), Department of Transportation (DOTr), Department of Public Works and Highways (DPWH), Anti-Red Tape Authority (ARTA), and the Department of Finance (DOF) will evaluate the ordinances secured by the DILG to ensure its compliance with RA 7160.

Failure to comply with the directives is subject to administrative and disciplinary sanctions against erring public officials or employees.