MEMORANDUM CIRCULAR NO. 100 - ENJOINING PROVINCES, CITIES, MUNICIPALITIES AND BARANGAYS TO OBSERVE THE PROVISIONS OF Sec. 5(j) OF PRESIDENTIAL DECREE NO. 231, "ENACTING A LOCAL TAX CODE FOR PROVINCES, CITIES, MUNICIPALITIES AND BARRIOS"

The attention of the Office of the President has been called by the Department of Agriculture on the imposition and collection by some municipal governments of fees from private vehicles which transport palay from their municipalities.

The imposition and collection of such fees as well as fees of a similar nature is violative of Sec. 5(j), Presidential Decree No. 231, "Enacting A Local Tax Code For Provinces, Cities, Municipalities and Barrios", which provides:

Sec. 5. Common limitations on the taxing powers of local governments. — The exercise of the taxing powers of provinces, cities, municipalities and barrios shall not extend to the imposition of the following:

xxx xxx xxx

(j) Taxes and other impositions upon goods carried into or out of, or passing through, the territorial jurisdictions of local governments in the guise of unreasonable charges for wharfage, use of bridges, or otherwise, or other taxes in any form whatever upon such goods or merchandise.  

Since 19.07.98.