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Agencies propose fee hikes

HIGHER FEES AND CHARGES have been proposed by government agencies to reflect current transaction costs, with the increases ranging from 20% to as high as 200%.

The planned adjustments — currently involving 29 units — are in line with a policy to shore up non-tax revenues, Finance Undersecretary Gil S. Beltran said on Friday.

“The increase in fees and charges will be in response to inflation since some agencies have not increased their prices since 1993,” Mr. Beltran said, adding that the department will also begin periodic reviews of rates charged by a total of 137 state agencies.

“We need the hike to recover the costs of materials used in the transaction, the salaries of the people who will process it and the budget of the office in charge,” he added.

Mr. Beltran claimed the expected revenue boost would allow the hiring of more personnel, making transactions more convenient and accessible.

Based on a Finance department memorandum obtained by BusinessWorld, the biggest adjustments have been proposed by the Bureau of Customs. The 50-200% increase for fees charged at the country’s ports was said to be needed as the last revision was made a decade ago.

The National Bureau of Investigation is also gunning for a 50% increase of fees that were last revised in 2000. The Bureau of Immigration, meanwhile, is considering a 30% hike, with its charges dating back to 1999.

The Professional Regulation Commission wants a 10-50% increase — the last fee update was done in 2005, while the National Telecommunications Commission (NTC) and the Securities and Exchange Commission (SEC) are seeking a 20% adjustment to charges that were last revised in 2004.

“The NTC could increase the fees they charge telecommunication companies for licenses. The incorporation fees and the penalties of the SEC could rise too,” Mr. Beltran said.

End-users could also see a 20% increase in the fees charged by the Civil Aeronautics Board and the Games and Amusement Board, with fees last revised in 2001 and 2006, respectively.

Based on the Finance department memorandum, the other agencies that want fee increases but have not indicated a range are:

• the Department of Energy (last updated in 2004);
• Department of Environment and Natural Resources (last updated in 2000);
• Department of Social Welfare and Development (last updated in 2001);
• Philippine Overseas Construction Board (last updated in 2001);
• Board of Investments (last updated in 2000);
• Bureau of Trade Regulation and Consumer Protection (last updated in 2000);
• Bureau of Food and Drugs (last updated in 2005);
• National Statistics Office (last updated in 2001);
• National Archives of the Philippines (last updated in 2002);
• Commission on Higher Education (last updated in 2000);
• Land Transportation Franchising and Regulatory Board (last updated in 2002);
• Housing and Land Use Regulatory Board (last updated in 2004);
• Land Registration Authority (last updated in 2003);
• National Mapping and Resource Information Authority (last updated in 2005);
• Land Management Bureau (last updated in 1993);
• Protected Areas and Wildlife Bureau (last updated in 2004);
• Forest Management Bureau (last updated in 2004);
• Environmental Management Bureau (last updated in 2005);
• Mines and Geosciences Bureau (last updated in 2005);
• Cooperative Development Authority (last updated in 2004); and
• the Occupational Safety and Health Center (last update, 2001).

The proposals are currently being studied by the National Economic and Development Authority.

Mr. Beltran said fee increases that affect the country’s competitiveness, such as those affecting trade, could be turned down. Government agencies that serve the poor, such as public hospitals, will be exempted from the fee increases, he added.

The government is aiming to collect P63.1 billion from fees and charges this year. It has netted P36.7 billion as of the first semester, 40% higher than the P26.2 billion collected in the same period a year ago and also exceeding the P29.6 billion midyear target.

The proposed fee increases will bring in an estimated P4.15 billion yearly, the Finance department memorandum states.
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By: Diane Claire J. Jiao
Source: Business World, Sept. 4, 2011
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