DILG to LGUs: Stop imposing pass through taxes on goods

Interior and Local Government Secretary Jesse M. Robredo today reiterated his order for all provincial governors, city and municipal mayors and punong barangays to stop imposing and collecting fees and taxes on goods passing through their respective localities.

Robredo issued the order amid report that some local government units are still imposing the pass through fees despite previous directives enjoining them to discontinue the imposition and collection of such fees and taxes.

He also said that during a dialogue with President Aquino, the transport sector also reported to the President that some LGUs are still collecting illegal fees and taxes, particularly on trucks and similar motor vehicles passing thru their jurisdiction.

The DILG Secretary reminded local chief executives of Section 133 of the Local Government Code which provides the limitation on the taxing powers of provinces, cities, municipalities and barangays.

Section 133 states that taxing powers of the LGUs shall not extend to the levy of the following: “taxes, fees and charges and other impositions upon goods carried into or out of, or passing through, the territorial jurisdictions of LGUs in the guise of charges for wharfage, toll for bridges or otherwise, or other taxes, fees or charges in any form whatsoever upon goods or merchandise.”

In his directive, Robredo again enjoined 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.

He also urged local chief executives to cause the immediate repeal of any ordinance imposing the above cited fees and taxes.

Robredo likewise directed all DILG regional directors to cause the immediate dissemination of his directive within their respective jurisdiction, and to report to his office non-compliance with the directive for the institution of appropriate cases against those concerned officials.

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