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Stock photo of a woman scanning a QR code with her smartphone to make a digital payment.
Businessworld / David Dvoracek-Unsplash
MANILA, Philippines — The Department of the Interior and Local Government (DILG) has called on all local government units (LGUs) to shift toward cashless transactions for collecting taxes, fees and other government charges.
In a memorandum circular released Saturday, May 17, the DILG encouraged LGUs to collect local taxes, fees, and other charges through digital platforms in accordance with Executive Order No. 170, s. 2022, which mandates the use of digital payments for government transactions.
“LGUs are encouraged to offer secure, accessible digital options, ensure payment channels are user-friendly, and partner with authorized providers, including government servicing banks,” the department said in a press statement.
The move is in line with President Ferdinand Marcos Jr.’s push for digital transformation in government.
According to DILG, digital payment systems improve transparency, efficiency and convenience for the public.
It also advised LGUs to align their systems with the National Retail Payment System Framework and the Data Privacy Act to ensure secure and compliant transactions.
LGUs were also assigned to establish clear procedures for issuing electronic invoices and billing notices, in line with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas.
While promoting cashless payments, the DILG clarified that LGUs must still accommodate cash and other traditional payment methods.
The department also urged LGUs to pass local ordinances and policies to support the full adoption of cashless payment systems.
