FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S.No. 3227 
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Introduced by Senator Ralph G. Recto 
EXPLANATORY NOTE 
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All departments, bureaus and agencies including govemrnent-owned and/or 
controlled offices impose fees and charges to recover the administrative cost of providing 
services to the public. 
Fees and charges remain a significant source of revenue for the State. Hence, the 
need of government agencies and bureaus to increas:l their fees and charges to achieve 
revenue targets and fund the country's socio-economic programs. 
From January to April, fees and charges imposed by different state agencies helped 
raise P32.434 billion in revenues, 11.7 percent higher than the P29.035 billion generated in 
the same period last year. 
In April alone, revenues from these state offices amounted to P7. 793 billion, which 
was 24.6 percent higher than the P6.255 billion earned for the same period last year. 
It has been reported that the Department of Finance and Department of Budget and 
Management submitted a joint memorandum to the President granting Cabinet Secretaries 
the discretion to raise the fees and charges imposed by national government agencies 
without seeking ptior clearance from the National Economic and Development Authority 
(NEDA) Board, which to their view has been cumbersome and by extension breeds 
inefficiency. 
According to the proponents, allowing the Cabinet Secretaties to raise fees and 
charges without NEDA's review and approval would enable the departments to run their 
operations more efficiently, boost revenue collection and enable the govemrnent to 
improve its services. 
However, placing the sole discretion of increasing fees and charges in the hands of 
Cabinet Secretaties runs counter to the spitit of checks and balance in govemrnent. This 
would also defeat the govemrnent's crusade to make public officials accountable and all 
government transactions transparent. Further, this might lead to.indiscriminate fee hike of 
agencies. 
NEDA's power to evaluate proposed increase in fees and charges is embodied in 
Memorandum Circular 137 and was likewise re-affirmed in NEDA Circular Nos. 01-2007, 
01-2008 and 01-2010. 
This bill seeks to institutionalize NEDA's function to review and approve fees and 
charges by requiring all heads of departments, bureaus, commissions, offices, agencies and 
instrumentalities of the national government including government-owned and/or 
controlled corporations to justify their proposal to impose new fees and charges or increase 
existing ones. For this purpose, a Task Force on Fees and Charges is created to be chaired 
by the NEDA Director-General, with the Secretaties of Finance and Budget and 


Management as members, which shall evaluate and recommend fees and charges imposed 
by all agencies. 
Since fees and charges are borne by the public and affect the cost of doing business 
in the country, the evaluation of fees and charges shall be guided by the principle of 
seeking just and reasonable rates on public goods and services rendered. 
The NEDA is the country's independent economic and development planning 
agency primarily responsible for formulating continuing, coordinated and fully integrated 
social and economic policies, plans and programs. Thus, the review of proposed increase 
in fees and charges is consistent with its mandate that major socio-economic policies, 
plans, programs and projects of different government agencies must be properly 
coordinated with the Authority and stakeholders prior to the adoption, in order to ensure 
their consistency with established national priorities. 
This bill also promotes checks and balance in government transactions and ensures 
that all fees charged by the State are commensurate to the services rendered to the 
transacting public. 
With the foregoing considered, the approval of thi 
. . s earnestly sought. 


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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session 
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SEN~W 
S.No. ~~27 
Introduced by Senator Ralph G, Recto 
AN ACT 
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AUTHORIZING THE NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY 
(NEDA) BOARD TO APPROVE FEES AND CHARGES IMPOSED BY NATIONAL 
GOVERNMENT AGENCIES AND GOVERNMENT-OWNED AND/OR CONTROLLED 
CORPORATIONS, CREATING FOR THE PURPOSE THE TASK FORCE ON FEES 
AND CHARGES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House oj Representatives oj the Philippines in Congress 
assembled: 
SECTION 1. Declaration of Policy. -
The State recognizes the need to improve 
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revenue collection to achieve revenue targets and fund the govermnent's socio-economic 
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programs. 
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The State identifies govermnent imposed fees and charges as a significant source of 
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revenue and can be used as an alternative to increased taxation. 
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Fees and charges entail costs to the public and affect the cost of doing business in the 
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Philippines. Hence, the State shall ensure that govermnent imposed fees and charges on public 
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goods and services rendered are just and reasonable, properly coordinated with the stakeholders, 
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and consistent with established national priorities of the government. 
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SEC. 2. Definition of Terms. - For purposes of this Act, the following terms shall be 
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defined as follows: 
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(a) 
'NEDA Board' refers to the country's premier social and economic development 
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platming and policy coordinating body created under Executive Order 292. 
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(b) 
'Task Force' shall mean the Task Force on Fees and Charges created under 
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Section 3 of this Act. 
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(c) 
'NEDA Technical Committee on Fees and Charges' shall refer to the research 
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and technical support arm of the Task Force created under Section 3 ofthis Act. 
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(d) 
'Agency' shall mean all departments, bureaus, commissions, agencies, offices, 
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units, and instrumentalities including government-owned andlor controlled corporations 
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(GOCCs). 
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(e) 
'Fees and charges' shall mean all fees, charges, assessments, and other receipts 
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or revenues imposed on direct recipients of public goods and services by agencies in the exercise 
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of their mandated regulatory and service delivery function. 
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SEC.3. Creation of the Task Force on Fees and Charges. - The Task Force on Fees 
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and Charges is hereby created, which shall evaluate and recommend the fees and charges and 
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proposed increases in the fees and charges imposed by all agencies to ensure just and reasonable 
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rates. 
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The Task Force shall have the concurrent NEDA Director-General as Chairperson and 
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the Secretary of the Department of Finance and Department of Budget and Management (DBM) 
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as members. 
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Further, the Technical Committee on Fees and Charges (TCFC) under the NEDA is 
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hereby created to provide research and technical support to the Task Force composed of the 
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following NEDA Officials: 
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Deputy Director-General 
Director, National Planning and Policy Staff 
Director, Agricultural Staff 
Director, Information Technology 
Coordination Staff 
Director, Infrastructure Staff 
Director, Legal Staff 
Director, Management Staff 
Director, Project Monitoring Staff 
Director, Public Investment Staff 
Director, Regional Development 
Coordination Staff 
Director, Social Development Staff 
Director, Trade Industry and Utilities Staff 
Chairperson 
Vice-Chairperson 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
Member 
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The Chairperson shall be designated by the Director-General. The members may 
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designate their respective alternates in the TCFC. The TCFC may seek the assistance of NEDA 
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Regional Offices and other NEDA units as well as other agencies and instrumentalities to provide 
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technical information and data needed in the evaluation of the proposed fees and charges. 
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The TCFC shall be supported by the NEDA Legal Staff as the Secretariat and shall meet 
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every first week of the month or as often as may be necessary. 
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SEC. 4. Powers and Functions. - The Task Force shall have the following powers and 
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functions: 
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(a) 
(b) 
Evaluate and recommend adjnstments of fees and charges; 
Provide guidelines and criteria in the detennination of just and reasonable rates 
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sufficient to recover the full cost of services rendered; 
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(c) 
Formulate a system to synchronize the accounting and reporting of collections of 
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fees and charges by agencies concerned; 
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(d) 
Monitor compliance on the adjustment of fees and charges by agencies 
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concerned; and 
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(e) 
Conduct consultation and provide technical assistance on the detennination of 
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cost of services rendered upon request of agencies concerned. 
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All agency requests to increase fees and charges shall need the approval of the NEDA 
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Board which shall act on the recommendation of the Task Force within six (6) months otherwise, 
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the request shall be considered granted. 
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SEC. 5. Submission of Reports by Government Agencies. - All agencies that receive 
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budgetary appropriations shall submit to the Task Force a report on the adjustment of rates as 
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authorized by NEDA Board not later than thirty (30) days after its effectivity, and submit to the 
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DBM, together with their proposed budget, a summary of proj ected revenues from fees and 
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charges. 
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SEC. 6. Monitoring. - The Bureau of the Treasury shall strictly monitor the collection 
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of fees and charges based on remittance advices of agencies concerned to anthorized collection 
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agent banks. 
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SEC. 7. Implementing Rules and Regulations. 
The National Economic and 
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Development Authority in coordination with the Department of Finance and Department of 
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Budget and Management shall promulgate the necessary rules and regulations for the effective 
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implementation of this Act. 
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SEC. 8. Separability Clause. - rfany provision oflhis Act is declared unconstitutional 
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or invalid, other parts or provisions hereof not affected thereby shall continue to be in full force 
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and effect. 
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SEC. 9. Repealing Clause. -
All other laws, orders, issuances, circulars, rules and 
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regulations or parts thereof, which are inconsistent with the provisions of this Act are hereby 
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repealed or modified accordingly. 
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SEC. 10. Effectivity Clause. -
The Act shall take effect after fifteen (15) days 
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following its publication in at least two (2) newspapers of general circulation. 
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Approve~ 
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