News Release

Adaption to digitalization increases LGU revenue collection – DILG

Compliance of local government units (LGUs) to digitalize and streamline their services will help increase their revenue collection, the Department of Interior and Local Government (DILG) said on Wednesday.

According to DILG Secretary Benhur Abalos Jr., one significant impact of the reforms on Ease of Doing Business include the increase in revenues from local business taxes, fees and charges to Php208 billion in 2022 compared to the recorded Php80 billion in 2018.

“That is times four. So, malaking bagay talaga ito na pasimplehan mo ang proseso, na you’re into digital,” Abalos said in a Palace briefing on Wednesday.

Another impact of the EODB is the increased number of registered businesses from 1.5 million in 2018 to 4.4 million in 2022.

Abalos assured they will continue to promote digitalization and streamlining of government services to more LGUs in partnership with the Department of Information and Communication Technology (DICT) as its technology partner.

The DILG and the DICT have their ongoing campaign for LGUs to utilize the E-Local Government Unit (eLGU) system, where the public can avail services such as business permit licensing, notice of violations, notification system, community tax, health certificates, local civil registry, business tax and real property tax.

As of December last year, a total of 921 LGUs or 60 percent are already compliant with the call for digitalization or automation of services. Of this figure, 799 LGUs use the eLGU system while 122 localities have their own systems. PND