Delivering goods across the country requires a hefty amount of money to accomplish. Fuel and vehicle maintenance are just the tip of a big iceberg of fees that businesses need to fork over to get their products where they need to go. Another fee that these businesses consider is called a “pass-through fee”, these fees encompass payments for permits or stickers indicating that a specific merchant's van or truck is authorized to traverse the city or municipality without facing any issues with local government traffic enforcement.
On the surface, a fee to travel through a city or municipality seems inconsequential, however, if a single vehicle covers a wide area and cuts through several LGUs, these fees will slowly start to add up. If you’re a single business that has a fleet of 10 or more vehicles, you’ll find yourself swimming in a sea of sticker payments and pass-through fee receipts.
To resolve this issue, given that the unauthorized imposition of pass-through fees is having a considerable impact on transportation and logistics expenses, which are ultimately borne by consumers, Executive Order (EO) 41 was passed into law, a law that came into effect when it hit the Official Gazette’s printers last September 25, 2023.
In accordance with Executive Order 41, it is stated that “All LGUs are prohibited from collecting toll fees and charges upon all motor vehicles transporting goods or merchandise while passing through any national roads and such other roads not constructed or funded by the LGU.”
The EO goes even further as it strongly urges LGUs to cease the collection of such charges, which include, among others, sticker fees, unloading fees, delivery fees, market fees, toll fees, entrance fees, Mayor's fees, and similar fees. Of course, officials and government agencies that fail to comply with the EO will be punished with administrative penalties and disciplinary actions as stated in Section 3 of EO 41.
