After dismal rate in 2021, LGUs told to increase digitalization efforts

After noticing a poor digital adoption rate in 2021, the Department of Finance (DOF) has challenged local government units (LGUs) to keep up with its target to digitalize government processes and services.

DOF secretary Benjamin Diokno

“We are challenging LGUs to keep up and digitalize their own processes and services. [We] encourage our local governments to implement digital innovation and transformation, especially in local treasury and assessment offices,” said Department of Finance secretary (DOF) Benjamin E. Diokno.

The process involves adopting digital or electronic facilities for business registration and renewal, as well as for the assessment and collection of local taxes, fees, and charges.

In fiscal year 2021, only 5 percent of LGUs made efforts to accept electronic payments through the Electronic Payment and Collection System, which resulted in total collections of P1.5 billion from individuals, and total collections of P4.3 billion from businesses and corporations.

Despite the 58-percent increase in total local business tax collections in the second quarter of 2022 at P83.7 billion, and the real property tax collections at P60.68 billion or 42 percent, the total local collections from digital platforms amounted to P5.8 billion, which is only 2.3 percent of the total local collections of LGUs.

On October 25, 2022, the Bureau of Local Government Finance (BLGF), in partnership with the Asian Development Bank (ADB), conducted a seminar on best tax administration practices and new technologies for local governments.

“I hope that our local treasurers and assessors, as well as personnel from the BLGF, can apply this new knowledge,” said Diokno.

In closing, he cited the top performing LGUs in FY 2021 for continuously improving and innovating the delivery of public services to their constituents.

Below is the list of top performing LGUs in local revenue generation for FY 2021 in NCR:

Performance area #1: Highest Locally Sourced Revenues

  • 3rd place – Manila
  • 2nd place – Makati
  • 1st place – Quezon

Performance area #2: Collection Efficiency (CE) of Locally Sourced Revenues

  • 3rd place – Muntinlupa
  • 2nd place – Valenzuela
  • 1st place – Taguig

Performance area #3: Year-on-Year Growth in Locally Sourced Revenues

  • 3rd place – San Juan
  • 2nd place – Valenzuela
  • 1st place – Malabon

National Top Performing Local Government Units in Local Revenue Generation for FY 2021:

Performance area #1: Highest Locally Sourced Revenues

Provinces

  • 3rd place – Pampanga
  • 2nd place – Bulacan
  • 1st place – Rizal

Cities

  • 3rd place – Manila
  • 2nd place – Makati
  • 1st place – Quezon

Municipalities

  • 3rd place – Carmona, Cavite
  • 2nd place – Limay, Bataan
  • 1st place – Cainta, Rizal

Performance area #2: Collection Efficiency (CE) of Locally Sourced Revenues

Provinces

  • 3rd place – Aklan
  • 2nd place – Quirino
  • 1st place – Cebu

Cities

  • 3rd place – Damariñas
  • 2nd place – Taguig
  • 1st place – Urdaneta

Municipalities

  • 3rd place – Initao, Misamis Oriental
  • 2nd place – Malilipot, Albay
  • 1st place – Kauswagan, Lanao del Norte

Performance area #3: Year-on-Year Growth in Locally Sourced Revenues

Provinces

  • 3rd place – Cebu
  • 2nd place – Benguet
  • 1st place – Lanao del Norte

Cities

  • 3rd place – San Pedro
  • 2nd place – Malabon
  • 1st place – Urdaneta

Municipalities

  • 3rd place – Tubajon, Dinagat Islands
  • 2nd place – Malilipot, Albay
  • 1st place – Kauswagan, Lanao del Norte

Below is the list of top performing provinces, cities, and municipalities for FY 2018-2020:

Performance area #1: Highest Locally Sourced Revenues

Provinces

  • 3rd place – Bulacan
  • 2nd place – Rizal
  • 1st place – Bataan

Cities

  • 3rd place – Manila
  • 2nd place – Makati
  • 1st place – Quezon

Municipalities

  • 3rd place – Carmona, Cavite
  • 2nd place – Cainta, Rizal
  • 1st place – Limay, Bataan

Performance area #2: Collection Efficiency (CE) of Locally Sourced Revenues

Provinces

  • 2nd place – Negros Oriental
  • 1st place – Capiz

Cities

  • 1st place – Navotas

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