LGUs told: Adopt cashless transactions for government fees

MANILA, Philippines — The Department of Interior and Local Governor (DILG) directed all local government units to adopt cashless transactions for government payments.

This is in response to President Ferdinand R. Marcos Jr.'s initiative toward digital transformation in government.

In a memorandum circular, the DILG encouraged LGUs to implement electronic payment and collection systems (EPCS) for collecting local taxes, fees, and other charges, in accordance with Executive Order 170, Series of 2022 on the use of digital payments for government transactions.

The DILG said that digital payments would improve transparency, efficiency, and public convenience.

All LGUs is also encouraged to offer secure, accessible digital options, ensure payment channels that are user-friendly, and to partner with authorized providers, including government servicing banks.

All efforts, according to DILG, should align with the National Retail Payment System Framework and the Data Privacy Act.

The DILG said that LGUs are also expected to define clear procedures for issuing electronic invoices and billing notices, consistent with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas.

The DILG, however, clarified that LGUs must still accept cash and other traditional modes of payment to ensure accessibility for all.

To ensure a full implementation of the circular, LGUs are encouraged to pass enabling ordinances and to issue local policies.

The DILG, on the other hand, assured that it is committed to provide capacity-building initiatives to help LGUs adopt the system and guide constituents in its usage. -