Whether Charging of Cash Tickets is a Violation of RA 7160

January 25, 2005 DILG LEGAL OPINION NO. 002-05 Mayor Glorioso R. Martinez Agoncillo, Batangas Dear Mayor Martinez : This refers to your letter requesting our legal opinion on the position taken by the Sangguniang Bayan of Agoncillo pursuant to its Resolution No. 33-04 expressing their position that charging of cash tickets is a violation of RA 7160 (Local Government Code of 1991). A reading of the aforesaid Sangguniang Bayan Resolution would reveal that the Sangguniang Bayan recommended to you to put an end to the imposition of cash tickets on goods carried into, out or passing through the Municipality of Agoncillo as the same not only violates Section 133, prescribing the limitation on local taxation fee and charge imposition, but also Section 130, both of the Local Government Code, for being in restraint of trade, which is a clear violation of the Local Government Code of 1991 and inconsistent with the Local Revenue Code of 1991 and, therefore, no basis and is considered unlawful and illegal. The Sangguniang Bayan is also apprehensive on the manner of collecting the cash tickets through a checkpoint at Barangay Sta. Cruz of the same municipality in view of the pronouncement of the President, Gloria Macapagal-Arroyo, that all checkpoints, for the purpose of charging fees or tolls, shall be eliminated considering the ill-effect on the economy being in restraint of trade. At the outset, may it be emphasized that the Mayor, on the one hand, and the Vice-Mayor and Sangguniang Bayan Members, on the other, performs separate and distinct functions under the Local Government Code. The Mayor is charged with the enforcement and execution of laws and ordinances as the Chief Executive of the local government unit concerned. On the other hand, the Vice-Mayor and the Sangguniang Bayan Members are constituted under Section 48 of the same Code as the legislative body of the local government unit and thus perform legislative functions which pertain to the enactment of ordinances. Based on the principle of separation of powers and functions, there can be no encroachment with the other's duties, powers and functions, such that the Mayor cannot legislate an ordinance, neither can the Sanggunian enforce and execute ordinances. Their respective duties and functions are precisely delineated by the Local Government Code, and reiterated in the case of Gamboa vs. Aguirre and Araneta (G.R. No. 134213, 20 July 1999). With that in mind, we shall now come first to Municipal Ordinance Nos. 07-2001 and 06-96, the former providing for the imposition of cash ticket fees on transportation of hogs, fish and other items outside the Municipality of Agoncillo in the course of business or trade, and the latter providing for the imposition of permit fees for those transporting bamboo in line with the regulation of fish cage industry. The Sangguniang Bayan is apprehensive and questioned the establishment of a checkpoint in Barangay Sta. Cruz wherein payments are collected for the cash tickets on all goods coming into, going out or passing through the same. In reply now to your query, in view of the aforestated separation of powers and functions by the Mayor and the Sangguniang Bayan, it is well to note that the manner and procedure in enforcing an ordinance is best left to the sound judgment of the Chief Executive, it being his mandated function under the Local Government Code. Accordingly, if the ordinance did not provide for the manner and procedure by which said ordinance is to be enforced or implemented, the enforcement thereof is within the prerogative of the Mayor to determine. Hence, if the Mayor, based on his best judgment, believes that the most efficient way of collecting the payments of the cash tickets is through a checkpoint, the same is legally permissible but only for the collection of cash tickets on items covered by Ordinance Nos. 07-2001 and 06-96. Hence, other goods passing through the checkpoint which are outside the coverage of both ordinances cannot be the subject of cash ticketing in the absence of another ordinance covering such other goods by that municipality. Neither can checkpoints be established by LGUs to collect "Road Users Tax". It is worthy to note that Section 10 of RA 8794 (An Act Imposing a Motor Vehicle User's Charge on Business of All Types of Motor Vehicles and For Other Purposes), provides that "No other tax, fee or any other charge of similar nature as the MVUC shall be imposed by any political subdivision or unit in the country". Hence, a local government unit cannot impose a "Road Users Tax". It is on this note that Her Excellency, President Gloria Macapagal-Arroyo directed the elimination of checkpoints if the same are used to collect "Road Users Tax" as said imposition is not within the power of the local government unit to impose. Be that as it may, it is not amiss to point out that the power to enact includes the power to repeal. Hence, should the Sangguniang Bayan believe that the ordinances aforestated suffer from some legal infirmity, then it is without question that the same may be the subject of their action through repeal or possible amendments. If, on the other hand, other goods subjected to the collection of cash tickets are not within the coverage of the two (2) aforestated ordinances, then the imposition of cash tickets has to be immediately stopped for lack of legal basis, and for your end to make the necessary legislative proposals to your Sanggunian to impose cash ticketing on goods not covered. aHcACT We hope that we have enlightened you on the matter. Very truly yours, (SGD.) ANGELO T. REYES Secretary Department of Interior and Local Government