LGUs ignore DILG circular on delivery trucks using RoRo
DILG: Trucks merely passing LGUs not covered by annual fixed tax
Some local government units (LGUs), particularly on Panay Island, continue to impose fees or charges on delivery trucks passing their area of jurisdiction despite the memorandum circular of the Department of Interior and Local Government (DILG) prohibiting such.
Recently, truck drivers of Makinaugalingon Press and The News Today based in Iloilo City again had a confrontation with the members of the Provincial Treasurer’s Office of Aklan who insisted on imposing the annual fixed tax on the former’s delivery trucks which merely pass the province en route to Manila availing of the national government’s roll-on roll-off (RoRo) program.
DILG issued Memorandum Circular No. 2009-42 dated March 27, 2009 clarifying issues on the imposition and collection of local taxes, fees and charges but it seems the local government officials still do not understand their roles or tend to ignore the law.
Last year, Interior and Local Government Secretary Ronaldo Puno 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.
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.
It can be recalled that the Provincial Legal Officer of Aklan province confirmed that the annual fixed tax embodied in Provincial Tax Ordinance No. 2008-001 could only be imposed on truck, van and any other vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of their products, whether directly or indirectly, within the province.
Atty. Lee Manares made the clarification in answer to the letter of Mr. Rosendo Mejica II, proprietor of Makinaugalingon Press and chairman of The News Today, questioning the apprehension of the latter’s trucks by personnel from the Provincial Treasurer’s Office every time the trucks pass the area of jurisdiction of Aklan province.
Mejica’s trucks pass by Aklan province in going to Metro Manila using the roll-on roll-off (roro) which has as take off point the Caticlan port in Malay, Aklan.
Mejica said the trucks are being used to transport raw materials to and from Metro Manila and as well as deliver their products to customers in Metro Manila. He stressed that the trucks merely pass by the province of Aklan and not deliver goods or products in the area.
Manares in his letter said that the concerns raised by Mejica was discussed and deliberated during the committee hearing conducted by the Sangguniang Panlalawigan Committee on Laws, Rules and Ordinances, where he together with a representative of the Office of the Provincial Treasurer was invited as resource persons.
“During (the) SP committee hearing, it has been discussed that the annual fixed tax imposed by the said ordinance should be applied to all delivery vehicles manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of their products, whether directly or indirectly, within the province (of Aklan),” Manares said.
“If ever a certain entity, person or corporation is not indeed delivering goods or any products, whether directly or indirectly, within the Province of Aklan, such entity, person or corporation claiming for an exemption should show adequate proof,” he added.
Mejica said the letter from the provincial legal officer of Aklan merely confirms his position on the issue which became the subject of his letter complaint sent to the provincial government.
“That’s precisely what I was saying in my complaint, that they should not impose annual fixed tax on our trucks since the trucks merely pass by the province of Aklan and do not deliver goods or products there,” Mejica said.
