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DILG: Digitalization Raises LGUs’ Revenue Collection To PHP208 Billion

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DILG: Digitalization Raises LGUs’ Revenue Collection To PHP208 Billion

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The digitalization of government processes has helped increase the local government units’ (LGUs) tax collection four times in five years, Local Government Secretary Benjamin Abalos Jr. said Wednesday.

“From PHP50 billion in 2018, ngayon po ay (now, it is) PHP208 billion. So, that is times four. So, malaking bagay talaga ito na pasimplehan mo ang proseso (it’s really a big thing to simplify the process, you’re into digital),” Abalos said in a Palace press briefing.

Abalos noted that as of Dec. 2023, around 60 percent or 921 of 1,634 LGUs are now automating their business permit processing, with 799 of them using the electronic LGU (eLGU) system and 122 others having their own innovative systems.

About 39 percent or 598 LGUs are also accepting online applications, while 15 percent of 222 LGUs are accepting online payments, based on the DILG data.

As of Sept. 15, 2023, around 8,311 permits have been approved by 668 cities and municipalities, while 2,404 permits are still being processed by 229 cities and municipalities.

“Now, what are the areas ngayon na nagawa ng DILG (that the DILG have done)? Number one, we are able to streamline business permits and licensing. Papaano na-streamline ito (How are these being streamlined)? From three days to just several minutes, from 27 steps to about three main steps; number two, streamlining o sinimplehan ang proseso ng (or simplifying the processing of) building permit and certificate of occupancy; number three, streamlining permits for construction of shared towers, fiber optic and underground laying,” Abalos said.

He said the DILG is coordinating with the Department of Information and Communications Technology (DICT) and the Anti-Red Tape Authority (ARTA) to reach its target of digitalizing the transactions of an additional 240 LGUs this year.

DICT Undersecretary David Almirol Jr. said the government is expecting an increase of 20 percent to 30 percent in the LGUs’ revenue collection, if its plan to automate the 240 LGUs’ processes succeeds.

Almirol said the DICT would also ramp up its efforts in providing free Wi-fi in the country, especially in areas where LGUs need improved connectivity for the implementation of eLGU.

President Ferdinand R. Marcos Jr. on Tuesday convened a sectoral meeting at Malacañan Palace in Manila to discuss the eLGU System Caravan.

The eLGU is among the vital components of the DICT’s eGov PH Super App, a mobile application that integrates the multi-sectoral government services in a single platform, covering a wide range of local government services such as business permit licensing, community tax, local civil registry and many others.

Anchored on the Marcos administration’s whole-of-government agenda, the eLGU nationwide caravan is a joint project of the DILG, DICT, and ARTA. (PNA)