PBBM orders LGUs to suspend ‘pass-through fees’ collection from vehicles transporting goods

President Ferdinand Marcos Jr. earlier this week told the local government units (LGUs) to suspend the "pass-through fees" to facilitate the smooth transportation of goods across regions.

The three-paged Executive Order No. 41, which Executive Secretary Lucas Bersamin signed on 25 September, explicitly prohibits all LGUs from collecting toll fees and charges from any motor vehicles transporting goods or merchandise as they traverse national roads and other roads that were not constructed or financed by the LGUs themselves.

"In the interest of public welfare, all LGUs are further strongly urged to suspend or discontinue the collection of fees such as, but not limited to, sticker fees, discharging fees, delivery 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 EO read.

The Executive Order underscored that the unapproved imposition of pass-through fees has a notable effect on transportation and logistics expenses.

These increased costs are frequently transferred to consumers, who ultimately shoulder the responsibility of covering the rise in prices of goods and commodities.

Furthermore, the EO also highlights that the reduction of transportation and logistics expenses is a fundamental component of the Marcos administration's 8-Point Socioeconomic Agenda.

"In order to uphold the welfare and advance the best interest of the Filipino people, it is the overarching policy of the Administration to consolidate all essential components within the value and supply chain, and reduce the costs of food logistics, which play a pivotal role in effectively tempering the inflation rate in the country," the EO added.

The EO emphasized that "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."

"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," the EO added.

The Executive Order will become effective immediately upon its publication in either the Official Gazette or a newspaper with wide readership.