News Release

PBBM on suspension of LGU ‘pass-through’ collection: It’s meant to promote ease of doing business


President Ferdinand R. Marcos Jr. defended the decision of the government to suspend the ‘pass-through’ fee collection of the local government units (LGUs) on national roads, saying that it is meant to promote ease of doing business.

“We are doing this to (implement) ease doing business and to lower the cost of transportation kasi kung dire-deritso ‘yung truck na makapunta doon sa pupuntahan niya talaga, mas mabilis. Ibig sabihin mas mura ang magiging transportation,” President Marcos said on Friday.

The President made the remarks when asked how the suspension of pass-through fees will help lower the prices of basic commodities in the market and stop smuggling in the Philippines.

President Marcos issued Executive Order (EO) No. 41 on September 25, prohibiting LGUs from collecting toll fees and charges to all vehicles transporting goods or merchandise while passing through national roads and other thoroughfares not constructed or funded by them.

The LGUs are also prohibited from collecting sticker fees, discharging fees, delivery fees, market fees, toll fees, entry fees, or Mayor’s Permit fees for all motor vehicles transporting goods and passing through any local public roads constructed and funded by said LGUs.

President Marcos believes that the unauthorized collection of pass-through fees will significantly lessen transportation and logistics costs as he emphasized that reducing transport and logistics costs is one of the pillars of the 8-Point Socioeconomic Agenda.

“Dahil hindi na titigil bawat boundary, mas mabilis ang pagdaan. So, it’s really about the ease of doing business. And to simplify, again, the procedures that are required for a transporter to bring the produce, especially from the farm to the market,” he added.

Local officials or employees who fail to comply with the directives are subject to administrative and disciplinary sanctions under EO 41. PND