TRUCKERS welcomed the positive changes brought by Executive Order 41 (EO 41), directing local government units (LGUs) to stop the collection of “pass-through fees” that contributed to rising logistics costs and higher prices for consumers.
EO 41, issued on September 25, states that the unauthorized imposition of pass-through fees has a significant impact on transportation and logistics costs, which are often passed on to consumers.
“Reducing transport and logistic costs is one of the pillars of the 8-point socioeconomic agenda of the administration, and ensuring the efficient movement of goods across the regions is one of the strategies for revitalizing local industries under the Philippine Development Plan 2023-2028,” the EO read.
For years, truckers have borne the brunt of pass-through fees imposed by local government units (LGUs), including Manila, home to two major international ports.
Mary Zapata, president of the Confederation of Truckers Association of the Philippines (CTAP), acknowledged the potential benefits of EO 41 but also highlighted the need for consistent implementation.
She noted that in Manila alone, this could translate to at least P15 million per month in cost savings for CTAP members, which operate 10,000 trucks.
This is a significant 10- to 15-percent reduction in their unnecessary expenses, including permits to enter.
Zapata believes that reducing logistic costs will also lead to more affordable prices for consumers.
Rina Papa, vice president of the Alliance of Concerned Truck Owners and Organization (Actoo), highlighted the impact of road users’ taxes in Manila, which cost truckers between P2,000 and P2,500 per truck each month. Over a year, this accumulated to nearly P30,000 in additional logistics costs per truck.
Actoo hopes to participate in the development of EO 41’s implementing rules and regulations (IRR). The trucking association seeks to broaden the scope of the EO’s impact, advocating for not only national roads but also roads leading to business centers, manufacturing sites and warehouses. They hope that LGUs will consider the broader implications of imposing taxes, levies and permits on the trucking industry.
Philippine Ports Authority (PPA) General Manager Jay Santiago expressed his support for EO 41. “This EO will contribute to lowering logistics costs and facilitating the faster transport of goods,” Santiago said.