Suspension of Pass Through Fees and DILG Action on Alleged Violation of Said MC by the Province of Laguna

November 24, 2011 DILG LEGAL OPINION NO. 082-11 Mr. Samuel B. Uy 227 Rizal Ave. Ext., Grace Park Caloocan City, M.M. Dear Mr. Uy : This has reference to your 25 October 2011 letter requesting this Department's clarification on MC No. 2011-151 on the suspension of pass through fees as well as this Department's action on the alleged violation of said MC by the Province of Laguna. Based on your narration, on 24 October 2011, the delivery truck of EMBU Integrated and Trading Corporation was made to pay annual fixed tax, surcharge and interest amounting to P725.00 as evidenced by O.R. No. 9940426 issued by the Province of Laguna. You are now invoking the Department's assistance to act on the alleged illegal collection of the Province of Laguna pursuant to MC No. 2011-151 which suspends all LGU imposition and collection of illegal fees and taxes. Upon examination of Official Receipt No. 9940426, we find that the alleged illegal collection is in the nature of an annual fixed tax amounting to P500.00 with surcharge and interest amounting to P125.00 and P100.00, respectively. Under Section 141 of the Local Government Code of 1991 (LGC) provinces may levy an annual fixed tax in an amount not exceeding P500.00 for every truck, van or any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other products as may be determined by the sangguniang panlalawigan. Clearly, the Province of Laguna is authorized to impose a fixed tax on delivery trucks, vans or any vehicle carrying goods as enumerated under Section 141 of the LGC, and other products as determined through an ordinance by the sangguniang panlalawigan. In view thereof, the annual fixed tax collected by the Province of Laguna is not an illegal collection, hence, does not fall within the subject of MC No. 2011-151. IETCAS We hope to have enlightened you on the foregoing. Very truly yours, (SGD.) JESUS B. DOQUE IV Director III, Legal Service ATTACHMENT EMBU INTEGRATED AND TRADING CORPORATION 227 Rizal Avenue Ext. Grace Park, Caloocan City, Metro Manila, Philippines 1405 Tel. no. 3665607 to 09 * Fax no. 3665614 * Email: [emailprotected] October 25, 2011 Department of the Interior and Local Government A. Francisco Gold Condominium II EDSA, Cor Mapagmahal St.,Diliman, Q.C. Attention : Hon. Jesse M. Robredo Secretary Subject : Memo Circular No. 2011-151 Dear Hon. Jesse Robredo, Greetings! I want to clarify on the memo circular 2011-151 you have issued last Oct. 12, 2011, which clearly states the suspension of the pass thru charges. Yesterday we made a delivery to Laguna under our truck no. WLF 696 and where were made to pay under O.R. No. 9940426 Annual fixed tax, surcharge and interest of P725.00 and they say that the suspension of the pass thru charges memo 2011-151 which we showed them a copy from the DILG, only applies to perishable goods and that other goods are not included. The collecting officer just put a rubber stamp under the name of Evelyn A. Guzman and Erly H. Samonteza was not signed when it was issued. As it is clear violation stated under Memo Circular 2011-151 Section 133 (e) no. 1 refrain from enforcing any existing ordinance authorizing the levy of fees and taxes on the inter-transport of goods, regulatory fees from passengers in local ports and other additional taxes, fees or charges in any form upon transporting goods and passengers; and no. 2 cause the immediate repeal of the ordinance imposing the abovecited fees and taxes. Under this memo circular coming from your office have issued and disseminated in the newspaper. Is not being honor in the province of Laguna. As they are enforcing this strictly the pass thru charges when the memo circular 2011-151 was issued. I hope you can make the necessary action on this matter and finally resolve this issue and the necessary administrative action and sanction be taken to the personnel involve and even file an administrative case against the people implementing this suspended order by your office. As there were reports that a lot of trucks where being charge with this fees. Finally we pray we get our the refund P725.00. Thank you for your kind attention on this matter. ADEaHT Very Truly Yours, (SGD.) SAMUEL B. UY Manager DILG Memorandum Circular No. 151-11 October 12, 2011