President Marcos Jr. Halts Pass-Through Fees To Enhance Cargo Transport Efficiency

Written by Christian B Padillo

President Ferdinand Marcos Jr. has made a significant move to streamline cargo transport in the Philippines. He has instructed local government units (LGUs) to stop collection of pass-through fees on national roads.

This is implemented via Executive Order No. 41. This decision aims to ease the financial burden on consumers and enhance cargo transport efficiency.

Under this directive, LGUs are prohibited from imposing tolls on cargo vehicles using roads funded by public resources. The Palace emphasized the importance of public welfare.  LGUs have been directed to suspend various fees. They include sticker fees, discharging fees, delivery fees, market fees, toll fees, entry fees, or Mayor’s Permit fees. These fees are typically levied on motor vehicles transporting goods across local public roads funded by LGUs.

The rationale behind this executive order is straightforward. Unauthorized pass-through fees significantly increase transportation and logistics costs, which are often passed on to consumers. This has a domino effect, resulting in higher prices for goods and commodities.

To ensure compliance, the Department of the Interior and Local Government is tasked with obtaining copies of local ordinances related to pass-through fee collection. Additionally, government agencies such as finance, trade, and transportation are responsible for creating and issuing guidelines for the effective implementation of the EO.

President Marcos Jr. has made it clear that local leaders failing to adhere to this directive will face administrative and disciplinary consequences. This move marks a pivotal moment in the country’s efforts to enhance transportation and logistics efficiency while relieving financial strain on consumers.