DOTr: PhP2.5B for plates to come from National Treasury

No fees collected from motorists to print MC plates

The Department of Transportation (DOTr), has earlier defended and clarified the Land Transportation Office's (LTO) request for PhP 2.5-billion funding to produce the approximately 18-million motorcycle plates in its backlog.

Earlier this week, LTO chief, Edgar Galvante, was quoted saying the agency would require the large amount in funding in order for them to stamp and deliver the 18-million motorcycle plates still needed by 2022. The services of a third-party contractor may be tapped to help the agency with this humongous effort.

Unfortunately, the news was met by the general public with uproar thinking another plate fee will be collected upon registration renewal.

Didn't we already pay for the number plate?

“Where’s the money collected from us to pay for the number plates?” many motorcycle owners asked.

Yes we did. Millions of motorcycles, especially those that were purchased prior to 2018, have already included the payment for the new plates as part of their registration.

The DOTr says that those fees, too, that were already paid for the supposed production of number plates, were all remitted to the National Treasury.

“Yung mga ibinayad po natin para sa ating mga plaka noon ay diretsong nai-remit na po ng LTO sa national treasury. (The payments that were made for the number plates were already remitted by the LTO to the National Treasury).”

The DOTr clarified that since motorcycle riders already paid for their number plates, no additional payments from owners will be required by the LTO.

Why is it with the treasury?

“Please understand that LTO neither holds nor maintains any revenue it collects from motorists,” said DOTr assistant secretary, Goddes Hope Libiran.

What it means is that all the registration and licensing fees, as well as the fines that motorists pay to the LTO, go directly to the National Treasury. The LTO does not hold or keep the money that they generate, including the payment for the undelivered motorcycle number plates.

“Lahat po ng kita o ‘yung mga ibinabayad ng motorista sa LTO — kesyo bayad sa huli, lisensya, plaka, rehistro, etc., hanggang sa kahuli-hulihang sentimo — ay nire-remit ‘ho sa National Treasury. Wala pong natitira sa LTO. (All the revenue collected from motorists, whether for fines, licensing, plate numbers, registration, etc., down to the last centavo are all remitted to the National Treasury. Nothing is left or withheld by the LTO),” explained Asec. Libiran.

How does the LTO get funded?

Since the LTO remits all the income they generate to the National Treasury, the agency gets funding for projects through congress and the Department of Budget Management’s  (DBM) approval.

“Once remitted to the National Treasury, it is the DBM and Congress who decide how much will be alloted to fund specific projects or services, subject to the request of the agency. DBM at Congress ‘ho ang nag-aapruba ng annual budget ng LTO,” added the DOTr.