MANILA – The Department of Finance (DOF) has posted online through its website the draft regulation setting the fees for the use of the Personal Property Security Act (PPSA) electronic registry and is asking the public to submit comments until April 22.
The DOF, along with the Land Transportation Authority (LRA) and the National Tax Research Center (NTRC), worked together to determine the fee structure and feasible rates of fees to be imposed for the use of the PPSA electronic registry, it said in a statement Tuesday.
These three government agencies had determined that a single-rate fee structure is consistent with cost recovery, which is the basic principle behind the imposition of fees and charges.
It is assumed that the same cost of service is incurred regardless of the amount of security interest being registered and/or certified.
A single-rate fee structure is easy to implement and will not be burdensome to either lender or grantor, which is the primary directive of the law.
PPSA or Republic Act (RA) No. 11057 aims to promote economic activity by increasing access to least cost credit, particularly for micro, small, and medium enterprises (MSMEs), by establishing a unified and modern legal framework for securing obligations with personal property.
Section 38 of the PPSA mandates that the fees for registering a notice and for requesting a certified search report shall be by regulation issued by the DOF for the recovery of reasonable costs of establishing and operating the PPSA electronic registry.
Interested public and stakeholders may email their comments to email@example.com. (PNA)