Mandaue faces P10M revenue loss if delivery permit fees collection is suspended

Mandaue faces P10M revenue loss if delivery permit fees collection is suspended
File/Mandaue City Information Office Facebook page

A REVENUE of around P10 million for 2024 from payments for processing of delivery permits will be lost should Mandaue City Government impose an ordinance that suspends such payment for next year, an official said.

The Mandaue City Council has drafted an ordinance calling for the suspension of collection of fees from vehicles transporting goods in the city.

But lawyer August Lizer Malate, executive secretary of Mayor Jonas Cortes and head of the city's Business Permit and Licensing Office (BPLO), told SunStar Cebu on Tuesday, November 14, 2023, that Mandaue generates roughly P10 million per year from payments of delivery permits.

This P10 million revenue goes to the City’s general fund to finance its projects.

Malate said the city's delivery permit costs around P500, and this is composed of a sticker fee, delivery fee, and mayor's permit fee, among others. The delivery riders need to pay this every January.

He said securing the permit is not compulsory, though, for delivery riders, except for those with incidental businesses and direct transactions with Mandaue clients.

Data from BPLO revealed that Mandaue has around 2,700 registered transporting vehicles as of 2023.

The Mandaue City Council passed on first reading on November 13 a proposed ordinance that calls for a one-month suspension of payments for delivery permits in the city, effective December 31, 2023 until January 31, 2024.

The ordinance, however, still requires delivery riders to get delivery permits for regulatory purposes, but they will not be required to pay the fee.

Councilor Jimmy Lumapas, chairman of the Committee on Transportation who drafted the proposed ordinance, could not confirm yet if the City will also allow the suspension of delivery permit payments in 2025 or until the order remains in effect.

But he said the measure was pushed for the City to adopt President Ferdinand Marcos Jr.’s Executive Order (EO) 41.

"Although there will be a loss of revenues, the tenor of EO 41 is to help the entire thing, to lower goods and fuel prices. But on our stand, we didn't even touch the goods. We didn't even touch the entrance. We only touched a one-time fee for legalization. There is a different law that also allows it, but again, we show support," said Malate.

One of the coordinators of the National Union of Food Delivery Riders of the Philippines, Ariel Sarsaba, said the move was a significant advantage to Cebu riders, especially those who go hide-and-seek from traffic enforcers to prevent apprehension for not paying for delivery permits.

Sarsaba also stressed the need to abolish the permit for good, emphasizing that throughout the country, only the tri-cities of Cebu, Mandaue, and Lapu-Lapu collect such fees.

Following the ordinance's first reading passage, Sarsaba urged the Mandaue City Government to implement more regulations that focus on the welfare of delivery riders, such as creating a Motorcycle Riders Welfare Office, requiring city-based commercial establishments to provide a "Delivery Riders Hub" for riders to have decent and sanitary waiting areas, requiring application operating businesses to have an office in the city, and requiring city-based application companies to provide basic social protection and comprehensive insurances to their delivery riders.

"Finally, we want the LGU Mandaue to schedule a meeting with the app management with the union because app companies' treatment of riders is getting worse," Sarsaba said.

EO 41, signed by Marcos Jr. on September 25, 2023, mandates the prohibition of imposing toll fees on motor vehicles carrying goods or merchandise traversing national roads and other routes not financed by their government units.

It also urged to suspend collection of fees such as, but not limited to, sticker fees, discharging fees, delivery fees, market fees, toll fees, entry fees, or Mayor's Permit fees that are imposed upon all motor vehicles transporting goods and passing through any of their constructed local public roads to lessen goods and fuel prices.

The EO stated that the unauthorized imposition of pass-through fees has a significant impact on transportation and logistics costs. Often, consumers ultimately bear the burden of paying for the increase in prices of goods and commodities. (HIC)

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