LTO urged to scrap RFID fee collection

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 “unnecessary burden on motorists” especially since the RFID system—initially presented as an automatic identification technology to streamline vehicle registration—”is not being effectively utilized.”

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.

“This 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’t even being used as intended,” Herrera said.

Instead, she urged the LTO to prioritize public interest by eliminating these fees.

“Our goal should be to ease the burden on our people, not add to it,” she said.

Herrera stressed if the RFID system isn’t serving its purpose, “then there’s no justification for continuing to charge these fees. Let’s do the right thing for our motorists and eliminate this unnecessary financial burden.”

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.

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“The technical aspect is now being studied and we’re looking to that possibility. As to the possibility of removing the RFID, that’s also something we’re considering right now,” Mendoza said.

“If that component in the cost of the plate can be removed altogether, then it will be savings on the part of the motorists,” 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.