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| Road in Pasay City. Photo by Dennis D. Estopace |
The Department of Transportation and
Communications (DOTC), through the Office of the Solicitor General (OSG), filed
a motion at the Baguio City Regional Trial Court to reconsider its decision
nullifying LTO Department Order 2008-39 entitled “Revised Schedule of LTO Fines
and Penalties for Traffic and Administrative Violations.”
As specified in the motion,
distinguishing tax and regulation as a form of police power, the determining
factor in distinguishing tax over regulation as a form of police power is the
purpose of the implemented measure. In the LTO DO No. 2008-39’s case, the
primary purpose is regulation and revenue is merely incidental.
The order was issued in accordance with
prescribed procedures. In compliance
with DOF-DBM Joint Circular No. 2002-2, four public consultations were made in
2002 and two public hearings were conducted in 2003 and 2005.
Public consultations were held on
October 3, 2003 and January 11, 2005 attended by members of jeepney driver and
operators’ associations.
The motion clarified that the increase
in the fines and charges are justifiable considering key parameters including
the direct and overhead cost for rendering the services; actual expenses;
comparable services, including the length of time the fee has not been revised;
and the gravity of the offenses, which serves as an effective deterrent to
violators.
Considering the fifteen-year difference
of the old and new rates, the current value of the peso, and most importantly
the safety of the public, the new fines are neither arbitrary nor excessive.
DOTC clarified, however, that once the
decision of the court becomes final and executory, “we will abide by the ruling
stopping LTO Department Order No. 2008-39.”
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