The Bagong Henerasyon Party-list Representative Bernadette Herrera on Friday, August 30, asked the Land Transportation Office (LTO) to discontinue the collection of radio frequency identification (RFID) fees from vehicle owners.
During the House Committee on Appropriations hearing for the Department of Transportation’s (DOTr) proposed budget for 2025, Herrera questioned LTO Chief Assistant Secretary Vigor Mendoza II on the rationale for RFID fees.
According to Herrera, there is no need for the LTO to keep charging motorists, as the RFID system is not effectively utilized.
“This is just a memo circular, and it should be easy to revoke. These fees are an unnecessary burden on consumers, especially since the RFID system isn’t even being used as intended,” she stressed.
The memorandum’s approval was intended to enhance the motor vehicle registration system. Under the LTO Memorandum Circular No. ACL-2009-1199, motorcycles are required to pay P123.73, while motor vehicles shall pay P150.63.
“If the RFID system isn’t serving its purpose, then there’s no justification for continuing to charge these fees. Let’s do the right thing for our motorists and eliminate this," Herrera said.
Moreover, she said that the department’s aim should focus on lightening the burden on people, instead of adding to it.
In response, Mendoza said that they are evaluating the feasibility of either implementing or eliminating the RFID system.
“As to the possibility of removing the RFID, that’s also something we’re looking at right now. If that component in the cost of the plate can be removed altogether, kung wala namang paggagamitan ang RFID, then it will be a savings on the part of the motorists,” Mendoza said.
“Either way, pinag-aaralan namin ito and hopefully by next month makapag submit na kami ng recommendation sa departamento,” he added.
Herrera asked Mendoza they expedite the review so that a recommendation could be submitted before the plenary debates on the national budget in September.
