LGU pass-through fees on cargo vehicles illegal, joint memo stresses

Local government units (LGUs) may not collect fees, taxes and other charges—such as pass-through fees—from cargo vehicles passing through their jurisdictions, a new directive has reiterated.

Joint Memorandum Circular (JMC) No. 2021-01 was virtually launched by the Anti-Red Tape Authority (ARTA), Department of the Interior and Local Government (DILG), and Department of Finance (DOF) on April 28. It provides omnibus guidelines on the suspension of LGUs’ imposition and collection of illegal fees and taxes relative to the transport of goods and products.

The issuance of the memo was welcomed by truckers with Inland Haulers and Truckers Association president Teodorico Gervacio telling PortCalls in a phone interview they are hoping for the order’s immediate implementation. He noted how truckers for years have been subjected to various LGU-imposed charges even when they are just passing, and despite truckers’ payment of road user’s tax to the national government.

(For the full article, please visit PORTCALLS)

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