LTO not authorized to use daily collection for production of driver’s licenses, number plates

License plate photo from Department of Transportation - Philippines Facebook page

A ranking official at the Land Transportation Office (LTO) clarified that the agency cannot use its daily collection as its own funds to produce driver’s licenses and number plates.

KEY TAKEAWAYS

  • Where does the Land Transportation Office get its funding?

    The LTO gets its budget from the allocation stated in the General Appropriations Act (GAA).
  • Where do the Land Transportation Office's collections go?

    The collection is being remitted on a daily basis to the Bureau of Treasury.
  • The statement came following the shortage on supply of plastic cards that the LTO is experiencing.

    According to LTO Finance Division Chief Marivic Lopez, the collection is being remitted on a daily basis to the Bureau of Treasury.

    driver's license

    The official also noted that the yearly allocation only comes from what the national government has approved in the General Appropriations Act (GAA). The aforementioned funding is meant to be utilized on the LTO’s operations and raw materials that it will be needing.

     “The LTO is not authorized to retain funds collected/received from the day-to-day operations. All funds collected are remitted the following day. Ang pondo ng LTO ay galing sa GAA at hindi galing sa daily collections (The LTO funds come from GAA and not from daily collections),” Lopez was quoted as saying.

    In addition, the agency reiterated that the cause of the declining supply of plastic cards for licenses and the impending depletion of license plate supply is not the lack of funds but on the delayed procurement or purchase of raw materials.

    In recent history, the LTO acquired a second plate-making robot that is capable of producing 450 motorcycle plates per hour. It is housed within the plate-making facility that was put up in April 2018 to expedite the production and distribution of license plates, which was outsourced in the past.

    LTO platemaking plant

    Relatedly, the Department of Transportation (DOTr) is studying the agency-to-agency procurement in possibly addressing the shortage on supply of plastic cards for driver’s licenses.

    In a separate statement, the transportation secretary Jaime Bautista is coordinating with the National Printing Office due to the latter’s technical capabilities.

    The department said that the probable solution is still in its “exploratory stage.”

    MC license plates

     

    Based on the existing laws and regulations, the Central Bids and Awards Committee (BAC) needs sufficient details on the targeted measure before finalizing the “agency-to-agency arrangement” that would come in the form of a memorandum of agreement.

    The DOTr noted that an ongoing competitive bidding for the license cards is taking place. The deadline to submit opening bids is until May 24, 2023.

    Photos from Department of Transportation, Ruben Manahan IV, Land Transportation Office

    Also read:

    Improvised license plates require LTO authorization letter

    LTO extends driver’s license validity

    LTO drops periodic medical exam requirement for driver’s license holders

    Read All

    Featured Articles

    Recommended Articles For You

    Read All

    Featured Cars

    • Upcoming

    Car Articles From Zigwheels

    • News
    • Article Feature
    • Advisory Stories
    • Road Test
    • New Isuzu PH chief says current D-Max to stay for a while
      New Isuzu PH chief says current D-Max to stay for a while
      Paulo Papa . Apr 25, 2025
    • GAC Honda GT, Dongfeng Honda GT showcased at Auto Shanghai 2025
      GAC Honda GT, Dongfeng Honda GT showcased at Auto Shanghai 2025
      Cesar Miguel . Apr 25, 2025
    • ‘BMW Demo Fest’ lets PH buyers shop for cars at trimmed-down prices
      ‘BMW Demo Fest’ lets PH buyers shop for cars at trimmed-down prices
      Ruben Manahan IV . Apr 24, 2025
    • Mazda unveils EZ-60 at Auto Shanghai 2025
      Mazda unveils EZ-60 at Auto Shanghai 2025
      Cesar Miguel . Apr 24, 2025
    • Omoda, Jaecoo showcase latest NEV models at Auto Shanghai 2025
      Omoda, Jaecoo showcase latest NEV models at Auto Shanghai 2025
      Cesar Miguel . Apr 24, 2025
    • Mazda BT-50: old vs. new
      Mazda BT-50: old vs. new
      Cesar Miguel . Apr 24, 2025
    • Check out the Suzuki Dzire Hybrid's 2 trims
      Check out the Suzuki Dzire Hybrid's 2 trims
      Cesar Miguel . Apr 24, 2025
    • Here’s what inside the BYD eMAX 7
      Here’s what inside the BYD eMAX 7
      Cesar Miguel . Apr 23, 2025
    • BYD Shark 6 DMO vs. Changan Nevo Hunter REEV
      BYD Shark 6 DMO vs. Changan Nevo Hunter REEV
      Paulo Papa . Apr 23, 2025
    • Here’s what to expect on the road this Holy Week
      Here’s what to expect on the road this Holy Week
      Paulo Papa . Apr 16, 2025
    • What should you visit first at MIAS 2025?
      What should you visit first at MIAS 2025?
      Cesar Miguel . Apr 11, 2025
    • Do you really need 4x4 for overlanding?
      Do you really need 4x4 for overlanding?
      Cesar Miguel . Mar 26, 2025
    • Number coding 2025: what you need to know
      Number coding 2025: what you need to know
      Paulo Papa . Mar 09, 2025
    • EVs still require lubrication, JAMA execs say
      EVs still require lubrication, JAMA execs say
      Paulo Papa . Mar 09, 2025
    • Ensure your vehicle is Summer road trip-ready by following these tips
      Ensure your vehicle is Summer road trip-ready by following these tips
      Paulo Papa . Mar 06, 2025
    • First drive: Changan Lumin
      First drive: Changan Lumin
      Cesar Miguel . Apr 22, 2025
    • JAC JS4: from daily drives to ‘vacay’ vibes
      JAC JS4: from daily drives to ‘vacay’ vibes
      Paulo Papa . Apr 22, 2025
    • First drive: Jetour X70 Lightning i-DM
      First drive: Jetour X70 Lightning i-DM
      Paulo Papa . Apr 03, 2025
    • Changan CS15: no-fuss daily driver
      Changan CS15: no-fuss daily driver
      Cesar Miguel . Mar 27, 2025
    • First drive: Mercedes-Benz EQE 350+ AMG Line
      First drive: Mercedes-Benz EQE 350+ AMG Line
      Paulo Papa . Mar 21, 2025