THE Pampanga Chamber of Commerce and Industry Inc. (PamCham) has lauded the latest Joint Memorandum Circular (JMC) 2019-01, issued and signed by Finance Secretary Carlos Dominguez III and Interior Secretary Eduardo Año, to make regulatory fees and service charges more reasonable.
The intent of the JMC to "not unduly burden" the public is commendable and manifests the government's concern for the interest and welfare of the people in general, PamCham said.
The circular also mentions that a balance between government recovering the cost of services rendered and ease of doing business must be considered in determining the amount of fees and charges imposed by the local government units (LGUs).
PamCham looks forward to the immediate implementation of DOF-DILG (Department of Finance-Department of the Interior and Local Government) JMC 2009-01 because it will aide in the faster growth of the micro and small enterprises in the countryside, enhance their viability, which in turn will hasten their advancement into medium and large enterprises.
The DOF and DILG, in a JMC, have ordered the LGUs to lower regulatory fees and service charges.
In a statement, the DOF said Dominguez and Año recently issued the JMC, which would "ensure that LGU fees do not unduly burden the public but are imposed only to help local governments recover the costs of services they render while making them more business friendly."
The JMC 2019-01 reads: "In order to help LGUs build strong enabling environment for good local governance and serve our constituents fairly, particularly the business sector, we enjoin all LGUs to review, adjust and/or revise their local revenue ordinances in accordance with the rationalized procedure for setting fees and charges."
The JMC 2019-01, which will take effect immediately, applies to all fees imposed by LGUs when they render public services, such as barangay clearances, billboard fees, business permits, mayor's permits and toll fees.
The circular tasked the DOF-attached Bureau of Local Government Finance to come up with a Local Fees and Charges (LFC) Toolkit, "which comprises the direct fixed cost (such as depreciation of equipment and utilities, or electricity and water used) and variable costs (such as salaries of personnel, cost of supplies and materials) of rendering services."
Meanwhile, the DILG would enjoin LGUs to use the LFC Toolkit so they not only update revenue codes and ordinances but also institutionalize a monitoring system to ensure compliance, the DOF said.
According to the DOF, LGUs have the option to adjust the fees they impose but these should conform to the variables in the LFC Toolkit used in computing the rates and should, as much as possible, [be] uniform for similar or comparable services and functions offered by other LGUs.
The JMC 2019-01 further reads: "The revised rates shall be imposed through the issuance of an appropriate ordinance and compliance to all legal requirements including the conduct of a public hearing and publications."
The JMC 2019-01 was issued in compliance with Republic Act 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act, and the Local Government Code.