The Department of the Interior and Local Government (DILG) called on all local government units (LGUs) to adopt electronic payment and collection systems (EPCS) as a modern alternative to traditional cash transactions.
The move aligns with President Ferdinand Marcos Jr.’s vision of fostering digital innovation across government operations and adheres to Executive Order No. 170, s. 2022, which mandates the use of digital payments for government transactions.
In a recently issued memorandum circular, the DILG encouraged LGUs to embrace EPCS for collecting local taxes, fees, and other charges. The department highlighted the benefits of digital payments, noting that they enhance transparency, improve efficiency, and offer greater convenience to the public.
To ensure successful implementation, the DILG urged LGUs to provide secure and accessible digital payment options, design user-friendly payment channels, and collaborate with authorized service providers, including government servicing banks.
It also said these efforts must comply with the National Retail Payment System Framework and adhere to the Data Privacy Act.
The memorandum likewise emphasized the need for LGUs to establish clear procedures for issuing electronic invoices and billing notices in line with standards set by the Commission on Audit and the Bangko Sentral ng Pilipinas.
However, the DILG clarified that while pushing for digitalization, LGUs must continue to accept cash and other traditional payment methods to ensure accessibility for all constituents.
To facilitate the transition, the department encouraged LGUs to enact enabling ordinances and local policies that support the shift to digital payment systems.
Additionally, the DILG committed to providing training programs to equip LGU personnel with the skills needed to implement the system effectively and assist residents in using the new payment methods.