DILG to LGUs: Make cashless payments an option in transactions

MANILA, Philippines — The Department of the Interior and Local Government (DILG) told local government units (LGUs) to make cashless payments an option in government transactions.

The agency maintained that digital payments “improve transparency, efficiency and public convenience” in a statement on Saturday.

“[The DILG] is urging all local government units to adopt electronic payment and collection systems (EPCS) as an alternative to traditional cash transactions… for collecting local taxes, fees, and other charges,” the department further said.

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“To support full implementation, LGUs are encouraged to pass enabling ordinances and issue local policies. The DILG also committed to providing capacity-building initiatives to help LGUs adopt the system and guide constituents in its use,” it detailed.

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LGUs were also asked to clearly define procedures to issue electronic invoices and billing notices in accordance with Commission on Audit and Bangko Sentral ng Pilipinas guidelines.

The DILG further said all initiatives must be in line with the National Retail Payment System Framework as well as Republic Act 10173 or the Data Privacy Act.

“While promoting digitalization, the DILG clarified that LGUs must still accept cash and other traditional modes of payment to ensure accessibility for all,” it added.

Executive Order No. 170 s. 2022 pushed to adopt digital payments for government disbursements and collections. /cb