We know “revolutionary tax” and “board and lodging fees”.
But “pass-through tax”? Never heard.
Still, the Department of Interior and Local Government said this illegal impost was being collected by certain local government units.
If so, these LGUs are no different from armed communist rebels and an extremist Muslim terror group.
“Revolutionary tax” is being collected by the communist New Peoples’ Army while the so-called “board and lodging fees” are being coughed up by families or relatives of kidnap victims of the Abu Sayyaf.
Such additional cost to traders and haulers of food and other basic goods further raise the prices of such commodities when they hit the markets in the metropolis.
House consumers – to whom retailers “pass through” this additional financial burden – naturally get walloped as they try to further stretch their already tight budgets.
Given this concern, the DILG thus warned LGUs against collecting the illegal tax.
Interior and Local Government Secretary Jesse Robredo issued the warning to provincial governors, mayors, and barangay chiefs following reports that pass-through fees were still being imposed despite his directive disallowing the practice.
The transport sector earlier met with President Aquino to complain about LGUs collecting such tax, particularly on delivery trucks passing through their areas.
Robredo invoked Section 133 of the Local Government Code that sets limitations on the taxing powers of provinces, cities, municipalities, and barangays.
He cited Section 133of the Code stipulates that the taxing powers of the LGUs shall not extend to the levy of the following: “taxes, fees and charges and other impositions upon goods carried into or out of, or passing through, the territorial jurisdictions of LGUs in the guise of charges for wharfage, toll for bridges or otherwise, or other taxes, fees or charges in any form whatsoever upon goods or merchandise”.
The DILG chief issued a directive enjoining all governors, mayors and barangay heads to refrain from enforcing any ordinance authorizing the levy of fees and taxes on inter-province 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.
He also urged local officials to immediately repeal any ordinance imposing pass-through tax and similar fees.
Robredo said he ordered his department’s regional directors to launch an information drive to reiterate his call and file charges against erring officials.
Indeed, let’s scrap this pestilential “tax”!
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