New JMC prompt LGUs NOT to Impose Fees and Taxes on the transport of goods and products

A Joint Memorandum Circular (JMC) was issued to prompt local government units (LGUs) not to impose fees and taxes relative to the transport of goods and products. It is a tripartite effort by the Anti-Red Tape Authority (ARTA), with the Department of the Interior and Local Government-Bureau of Local Government Supervision (DILG-BLGS), and Department of Finance-Bureau of Local Government Finance (DOF-BLGF).

The issue of local governments charging fees and taxes on the transportation of goods and products passing through their territorial jurisdictions in the guise of any other fees such as the sticker fee, has been a long-standing issue adding up to the looming cost of doing business in the country.

The JMC on the Omnibus Guidelines on the Suspension of LGU Imposition and Collection of Illegal Fees and Taxes Relative to the Transport of Goods and Products (a) emphasizes the limitations mandated by Local Government Code of 1991 on the taxing powers of LGUs and (b) provides additional directives for ARTA and DOF-BLGF.

Moreover, the JMC  directs LGUs to strictly observe DILG MC No. 2008-112, particularly on the exemption of trucks and delivery vans carrying rice and other perishable goods from the truck ban.

The virtual ceremonial launch of the JMC was led by ARTA on 28 April 2021. KJDA

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