Local business tax collections up thanks to digitalization: DILG

MANILA — Revenues from local business taxes and fees increased to P208 billion in 2022 after more local government units shifted to online business registration and payments, the Department of the Interior and Local Government (DILG) said on Wednesday.

The amount is about P150 billion higher than the P50 billion collection in 2018, DILG Secretary Benjamin Abalos Jr. said in a press conference in Malacañang.

“That is times four. So, malaking bagay talaga ito na pasimplehan mo ang proseso, na you’re into digital,” he said.

The number of registered businesses also increased to 4.7 million in 2022 from 1.3 million in 2018 thanks to a more simplified process of business registration and more business one-stop shops, he said.

So far 799 local government units are using the eLGU platform developed by the Department of Information and Communications Technology (DICT), while 122 others are using their own systems for online business applications and payments, according to data from the DILG.

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Meantime, 92 percent of all local government units in the country have established their one business one-stop shops, Abalos said.

“Siguro ang target for this year is another 240 (LGUs) hanggang matapos namin,” he said.

“What is important also is capacity building kasi kahit ibigay mo ito kung wala naman silang hardware, masasayang,” he said.

The national government is further streamlining the process of constructing telecommunications towers and WiFi facilities, said DICT Undersecretary David Almirol.

“Nasa 25,000 sites na yung free WiFi na naimplement before end of the year 2023,” he said.

“I think planong doblehin yung free WiFi especially sa mga LGUs na kailangan ng connectivity,” he said.

As of December 2023, only 60 percent of local government units have been automated. Only 39 percent are accepting online applications, while only 15 percent are capable of processing online payments.