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A ranking leader of the House of Representatives on Friday called on the Land Transportation Office (LTO) to discontinue the collection of radio frequency identification (RFID) fees from vehicle owners.
House Deputy Minority Leader and Bagong Henerasyon Rep. Bernadette Herrera, in a statement, said the fees were becoming an 鈥渦nnecessary burden on motorists鈥� especially since the RFID system鈥攊nitially presented as an automatic identification technology to streamline vehicle registration鈥斺�漣s not being effectively utilized.鈥�
The fees, currently set at P123.73 for motorcycles and P150.63 for motor vehicles, are mandated under LTO Memorandum Circular No. ACL-2009-1199, which introduced RFID technology as an enhancement to the motor vehicle registration system.
鈥淭his 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鈥檛 even being used as intended,鈥� Herrera said.
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Instead, she urged the LTO to prioritize public interest by eliminating these fees.
鈥淥ur goal should be to ease the burden on our people, not add to it,鈥� she said.
Herrera stressed if the RFID system isn鈥檛 serving its purpose, 鈥渢hen there鈥檚 no justification for continuing to charge these fees. Let鈥檚 do the right thing for our motorists and eliminate this unnecessary financial burden.鈥�
Under evaluation
During a recent House Committee on Appropriations hearing on the 2025 budget of the Department of Transportation, Herrera questioned LTO chief Assistant Secretary Vigor Mendoza II over RFID.
In response, Mendoza said the LTO was evaluating the feasibility of either fully implementing or eliminating the RFID system.
鈥淭he technical aspect is now being studied and we鈥檙e looking to that possibility. As to the possibility of removing the RFID, that鈥檚 also something we鈥檙e considering right now,鈥� Mendoza said.
鈥淚f that component in the cost of the plate can be removed altogether, then it will be savings on the part of the motorists,鈥� he added.
Herrera urged the LTO to expedite its review and submit a recommendation before the plenary session on the 2025 national budget.
Transport groups have already threatened to question the legality of the RFID in court aside from the defects in the RFID readers and stickers.