Monday, November 13, 2006
DILG stops LGUs from collecting fees
THE Department of Interior and Local Government (DILG) declared as illegal Local Government Units’ (LGUs) seaport fee collection, saying it is beyond their taxation powers.
This, after the Visayan Association of Ferryboat and Coastwise Service Operators (VAFCSO) complained against Argao, Cebu; Toledo City, Cebu; and Tubigon, Bohol for imposing fees on products passing through each of their ports.
DILG Secretary Ronaldo Puno issued Memorandum Circular 2006-70 suspending the “LGU’s imposition and collection of illegal fees and taxes.”
The order was addressed to all provincial governors, city mayors, municipal mayors, barangay captains and DILG regional directors.
Enforce
Puno asked local chief executives to refrain from enforcing any existing ordinances authorizing the levy of fees and taxes on inter-province transport of goods, regulatory fees on port passengers, and other additional taxes, fees or charges in any form.
He also asked the immediate repeal of said local measures.
Puno received reports that some LGUs are imposing various fees on goods carried into or out of, and passengers passing through their respective territorial jurisdictions.
Powers
He said such is beyond the scope of their taxing powers as embodied in Sections 134, 142, 151 and 152 of the Local Government Code of 1991.
In an interview, Tubigon Mayor Paulo M. Lasco maintained that they can impose taxes even in ports.
He wanted to know whether or not Puno’s circular could supersede the Code.
Section 134 states that municipalities, provinces and cities may impose business tax on manufacturers, assemblers, re-packers, processors, brewers, distillers, and other manufacturers of any article of commerce; wholesalers, distributors or dealers; retailers, exporters; contractors.
Section 133, however, prohibits LGUs from collecting wharfage fees.
Cebu Port Authority (CPA) General Manager Angelo Verdan said that he already have a copy of Puno’s memorandum circular.
He said LGUs can still collect fees if they are the ones that built the port terminals; like in Hagnaya, San Remigio, Cebu, where the Municipal Government and CPA share in the proceeds. (EOB)
For Bisaya stories from Cebu. Click here. (November 13, 2006 issue)
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