Bureau of Local Government Finance Opinion

November 20, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Municipal Treasurer, Luna, Apayao, his letter dated September 14, 2000 requesting opinion regarding the proposed new imposition of fees which the Sangguniang Bayan thereat seeks to be enacted. Representations are made that in addition to the regulatory fees imposed, such as Mayor's permit fee, on business activities involving the purchase of rice and corn from marginal farmers for sale outside of the LGU, the local legislative body has proposed to impose a loading fee or charge collectible from the same business activities in the absence of duly designated loading areas owned by the municipal government. However, as stated in your letter, your position runs counter against the subject proposal on the ground that loading is just a mere part of the whole process or activity of the business which the local legislative body seeks to charge. Thus, since the LGU does not have any existing designated loading places with officially employed porters or loaders whose services are to be paid in the form of loading fee, the subject proposal is unjust and unreasonable. HTCISE This Bureau concurs in your position. In addition, it may be stated that regulatory fees are by nature service charges as compensation for services actually rendered by the local government unit. The assessment and collection therefore of said imposition should be justified by the service actually rendered to the taxpayers. In the absence of such service there is no basis for the assessment and collection thereof. Be guided accordingly. ( SGD.) BENJAMIN A. GERONIMO Executive Director <http://www.blgf.gov.ph/downloads/opinion/localtax/2000/a2000-1004.pdf> last visited on October 2, 2013.