Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

3622

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

Citizens interact with the government most frequently by availing of public services. This is
considered the visible side of and the most common way to experience government. Improved
public services delivery is an essential tenet of determining good government and public
accountability.

Our government provides a wide array of services from an application for a postal ID, request
for a birth certificate, to the waiver of a visa. In many, if not all, of these services rendered to
the public, the government imposes fees or changes to recover the costs. However, it is
common to expect long lines, extended waiting time, and increasing fees when one avails of
public services. Quick and affordable public service remains the exception and not the rule.

Yet, according to the Bureau of the Treasury, collecting fees and <changes in all national
Government agencies in CY 2017 amounted to P32.865 billion. The Bureau of Local
Government Finance FY 2015 report shows that LGUs collected 109% of its revenue target in
fees and charges.

The primary economic reason on the imposition of user charges on direct recipients of
particular public service is to improve the efficiency in the government's use of its resources.
However government should be able to justify the use of cost recovery and make an effort to
show that there is efficient and effective application of fees and charges.

oor Public Services, “June 5, 2015,
cs-pro-poor-public-services

“Servicers” GOV.PH s/s
Bureau ofthe Treasury, “National Government Agencies (NGA's) Collecting Fees and Changes CY 2017.”
|http://www.treasury .gov.ph/wp-content/uploads/2017/12/mo_{

Richard M. Bird, “User Charges in Local Government Finance.

hhttpe/ Awww) woridhanicorg/publicsector, Bird? pf

Richard Boyle, “Using fees and charges- cost recovery in local government” An foras Riarchain Institute of Public
‘Administration, Report No. 3 December 2012,

hhetp://www.ipa.ie/_fleUpload /Documents/LocalGov_RS_No3,pdf


This bill thus seeks to impose a moratorium on all increases in government fees and charges imposed
by both local government units and national government agencies. This is intended to aide citizens by
reducing the financial burden in availing such public services, especially for the poor. Agencies and
entities in the government directly involved in delivering public service must be able to evaluate its
systems and adopt cost-efficient measures to better provide for and assist its citizens.

In view of the foregoing, the immediate passage of this bill is sought.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

3622
HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
IMPOSING A SIX-YEAR MORATORIUM ON THE INCREASE OF ALL
GOVERNMENT FEES AND CHARGES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
Assembled:

Section 1. Short Title. - This bill shall be known as the “Iwas Dagdag Singil sa Serbisyo
Ng Gobyerno Act’.

Section 2. Moratorium on the Increase of all Government Fees and Charges. -
There

Shall be a moratorium or suspension on all increases for fees and charges imposed by both the
National and local government for all services for a period of six (6) years from the effectivity
of this Act.

Section 3. Coverage. - The moratorium mandated by this Act shall cover all existing
and Fees and charges for all services imposed by the national government agencies and local
government units.

Section 4, Implementing Rules and Regulations. - The National Economic and
Development Authority (NEDA) in consultation with the Department of Finance (DOF) and the
Department of Interior and Local Government (DILG) shall promulgate the necessary rules and
Regulations for the effected implementation of this Act within sixty (60) days following this
effectivity.

Section 5. Repealing Clause. - Any law, presidential decree or issuance, executive
order, administrative order, rule, or regulation, contrary to or inconsistent with the provisions
of this act is hereby repealed, modified, or amended accordingly.

Section 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in at least two (2) newspapers of general circulation.

Approved,