Puno warns LGUs on imposing illegal 'pass-through' fees for delivery trucks
Secretary Ronaldo Puno of the Department of the Interior and Local Government (DILG) yesterday reminded local chief executives to stop charging “pass-through” fees from delivery trucks carrying certain products, including foodstuff and other agricultural goods, as such acts are illegal under the Local Government Code.
Puno warned local government executives that they will face administrative charges for ignorance of the law and other violations of the Code if they continue to impose such illegal fees even if these are covered by ordinances enacted by their respective local legislative bodies.
He said that depending on the extent of the violations committed, the DILG may even file criminal charges against the erring local officials.
The DILG chief issued the warning after President Arroyo ordered him to look into the numerous complaints from producers, manufacturers and wholesalers about local government units imposing these illegal fees despite the provisions clearly stated under the Local Government Code that limits and sets the taxes that can be imposed on delivery trucks.
“We will seek authority from Malacañang to investigate LGUs found imposing these illegal fees and other violations committed by them on the imposition of taxes on owners of delivery trucks,” Puno said. “We are going to be firm on this especially when our private sector needs all the help it can get in these difficult economic times.”
Besides these illegal “pass-through” fees, Puno said the DILG will also investigate reports about the excessive taxes imposed by provinces and cities on delivery trucks.
Puno said that he has directed all DILG regional officials to find out which LGUs are imposing these illegal charges and to submit a report to his office about the results of their respective surveys within five days.
After this period, he will submit to Malacanang a list of the LGUs which the DILG will investigate for violations.
He explained that under Sections 141 and 151 of the Local Government Code of 1991, only provinces and cities can impose an annual fixed tax for every delivery truck or van of manufacturers or producers, wholesalers of, dealers, or retailers in, certain products “as may be determined by the Sangguniang Panlalawigan to sales outlets or consumers whether directly or indirectly, within the province in an amount not exceeding five hundred pesos (P500).”
Puno made it clear that the tax to be imposed can only be charged annually and not every time a truck passes through a province or city. Moreover, the tax can only be imposed by the province or city that is determined to be the sales destination of the product carried by the delivery truck.
Municipalities cannot impose such taxes, Puno stressed.
He said LGUs that will stop charging the fees after his warning will be “considered to be acting in good faith” and will be required to reimburse the illegal fees they collected.
Puno said the charging of illegal truck fees were reported in certain areas in Lanao del Norte, Bukidnon, Ilocos Norte, Nueva Vizcaya, La Union and Pangasinan.
Before July last year, prior to the President’s State-of-the-Nation Address, Puno said the DILG found out 24 LGUs collecting illegal truck fees. “After the SONA, the number of violators went down to only three, but in the last two weeks we have received an upsurge of complaints again after these illegal charges.”
“I know we are in a period of local autonomy and we have been very liberal,” Puno said. “But it is also the responsibility of LGUs to be aware of what they should not do and what they can do,” Puno said. (DILG website)