The Interior department and the Finance department have partnered to ensure that Local Government Units will be more business-friendly in consonance with the guidelines adopted by both government entities giving reasonable regulatory fees and charges for their services.
The two agencies have signed a joint memorandum circular guiding LGUs to set reasonable fees and charges in accordance with the provisions of Republic Act 7160 or the Local Government Code of 1991 and RA 11032 or the Ease of Doing Business Law.
DILG Secretary Eduardo Año said with the issuance of the JMC, LGUs would be effectively guided on how to adjust and revise their fees and charges “at just and reasonable rates sufficient to cover the cost of services rendered.”
“High rates discourage investors while low rates could compromise the revenue generation of the LGUs. With this JMC, we are able to set the standard for the appropriate rates for the fees and charges to be imposed by the LGUs,” Año pointed out.