Collection of pass through fees on goods illegal: PHILEXPORT

Exporters have called for the stricter implementation of an order for all local government units (LGUs) to stop collecting fees and taxes on goods passing through their respective localities.

The Philippine Exporters Confederation Inc. (PHILEXPORT) said there are still complaints received from its members concerning this issue despite the issuance in 2011 of a memorandum circular for the purpose.

In pursuant to section 133 of the Local Government Code, such circular enjoined all local chief executives to refrain from enforcing any existing ordinance authorizing the levy of fees and taxes on inter-province transport of goods, regulatory fees from passengers in local ports, and other additional taxes, fees or charges in any form upon transporting goods and passengers.

“Since this was issued, pass through fees are already illegal and private sector may already report to DILG (Department of the Interior and Local Government) any violations,” PHILEXPORT said.

The DILG released the first memorandum on LGU imposition of illegal fees and taxes in 2006, followed by a reiteration memorandum for the same purpose in 2009.

It again released two memoranda in 2011, and another two for 2017 and 2018 providing the guidelines for the same issue.

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