Press Release
January 10, 2010


Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP Laban) today asked the Land Transportation Office to justify its collection of the P350 fee for the Radio Frequency Identification (RFID) project from motor vehicle owners despite the fact that the fact that the new system is not yet in place.

Pimentel said the compulsory payment of the RFID fee before cars and motorcycles are registered by the LTO is tantamount to an illegal exaction because there is no law that allows it and the motorists will not benefit from the system until it becomes operational by November this year.

"The RFID gadget is not yet available. But why are they already collecting the fee? I am going to sue them unless they can come up with a good explanation because a lot of people are being victimized by this extortionist act," he said.

Starting Jan. 4, the LTO has started tagging motor vehicles. The P350 fee is supposed to cover the cost of the RFID sticker which is placed on the windshield of every car.

The sticker contains a microchip which stores all the basic information about a motor vehicle. It is through the sticker that the LTO personnel will monitor the movements of vehicles and determine which of them are colorum, unregistered or improperly registered cars.

"I think it is questionable because there is no law that provides for it. They cannot justify it on the basis of fees which normally cover only the expenses for rendering services by t he employees," Pimentel said.

The minority leader said when his driver had his car registered by the LTO, he was required to more than P500 to include the P350 RFID fee and the Pl69 computer fee.

Pimentel said he has instructed his legal staff to prepare a civil suit against the LTO to stop it from implementing the RFID and another suit for illegal exaction.

Some transport groups have assailed the LTO for insisting on the implementation of the RFID even without the benefit of public bidding and without a project review and approval by the National Economic and Development Authority.

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