(NAR) VOL. 11 NO.2 / APRIL – JUNE 2000
WHEREAS, there is need to improve revenue collection to achieve revenue targets and fund the government's socio-economic programs;
WHEREAS, fees and charges remain a significant sources of revenue for the government;
WHEREAS,
government fees and charges are user charges which are commensurate
with the benefits received from services rendered, and persons receiving
such services must share the burden of expenses incurred by the
government instead of the full cost being borne by all taxpayers;
WHEREAS,
since the cost of rendering government services or regulating certain
activities has risen drastically and the government does not have
sufficient resources to sustain, improve or expand these services, it is
necessary that the rates of fees and charges be upgraded commensurately
with the increase in the cost of their administration;
WHEREAS, for social consideration, health, education and other social services are generally free or subsidized by the government;
WHEREAS,
despite the issuance of Executive Order (EO) No. 159, series of 1994,
directing all departments, bureaus, commissions, agencies and
instrumentalities of the national government including government-owned
or controlled corporations to adjust their fees and charges by just and
reasonable rates sufficient to cover at least the full cost of services
rendered, only very few agencies have complied;
WHEREAS,
EO No. 197 series of 2000 has been issued to reiterate the importance of
revising the rates of fees and charges and to direct all departments,
bureaus, commissions, agencies, offices and instrumentalities of the
National Government, including government-owned or controlled
corporations, to increase their rates of fees and charges by not less
than 20 percent;
WHEREAS, to prevent indiscriminate and
inappropriate increases in the rates of fees and charges, it is
important that the Task Force on Fees and Charges be reactivated to
review where necessary proposals from the agencies concerned before
approval of their Department Secretaries.
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:
Section 1. Guiding Principles.
In reversing their fees and charges, all departments, bureau, offices,
units and agencies including government-owned or controlled corporations
shall be guided by the universal concept of user charges, which is to
recover at least the full cost of services rendered. Fees and charges
have to be reviewed from time to time in accordance with such concept.
Sec. 2. Reactivation of the Task Force on the Revision of Fees and Charges.
The Task Force on the Revision of Fees and Charges created under
Administrative Order No. 255 issued on February 20, 1996 and composed of
representatives of the Department of Finance (Chairman), Department of
Budget and Management (Co-Chairman), Bureau of the Treasury and the
National Tax Research Center is hereby reactivated with the membership
expanded to include a representative from the Commission on Audit.
Sec. 3. Functions of the Task Force.
The Task Force shall, in addition to its present function of monitoring
compliance on the revision of fees and charges and the synchronization
of the accounting and reporting of collections from fees and charges
from agencies concerned, be responsible for the following functions:
- Review
and recommend on a selective basis, revisions of fees and charges under
EO 197, before approval of the Department of Secretary or Head of
Agency concerned, which function it shall perform on a continuing basis
as further revisions are proposed or deemed appropriate in the future;
- Pass upon any request for exemptions from EO 197;
- Render technical assistance on the determination of cost of services rendered upon request of agencies concerned; and
- Provide
guidelines and criteria in the determination of just and reasonable
rates sufficient to recover the full cost of services rendered.
Sec. 4. Submission of Reports by Government Agencies.
Government departments, bureaus, offices, agencies and units concerned,
including government-owned or controlled corporations receiving
budgetary appropriations, shall submit to the Task Force a report on the
revision of rates as approved by the Department Secretary concerned not
later than thirty (30) days after their approval/effectivity and to the
Department of Budget and Management, together with their proposed
budget, a summary of expected revenues from fees and charges, during the
budgetary hearings.
Sec. 5. Monitoring. The Bureau of the
Treasury shall closely monitor the collections of fees and charges
based on remittance advices of concerned government agencies, including
government-owned or controlled corporations to authorized collection
agent banks.
Sec. 6. Implementing Rules and Regulations.
The Department of Finance and the Department of Budget and Management
shall jointly promulgate the rules and regulations to implement this
Executive Order and monitor compliance by agencies.
Sec. 7. Repealing Clause.
All executive issuances or parts thereof, including those specially
providing for rates of fees and charges of specific government agencies
which are inconsistent with any of the provisions of this Executive
Order are hereby repealed or modified accordingly.
Sec. 8. Effectivity. This Executive Order shall take effect immediately.
Done in the City of Manila, this 15th day of March in the Year of our Lord, Two Thousand.
(Sgd.) JOSEPH EJERCITO ESTRADA
By the President:
(Sgd.) RONALDO B. ZAMORAExecutive Secretary