DILG to LGUs: Adopt cashless transactions for gov’t payments

In line with President Ferdinand R. Marcos Jr.’s push for digital transformation in government, the Department of the Interior and Local Government (DILG) is urging all local government units (LGUs) to adopt electronic payment and collection systems (EPCS) as an alternative to traditional cash transactions.

In a memorandum circular, the DILG encouraged LGUs to implement EPCS for collecting local taxes, fees, and other charges, in accordance with Executive Order No. 170, s. 2022 on the use of digital payments for government transactions.

The Department emphasized that digital payments improve transparency, efficiency, and public convenience. LGUs are encouraged to offer secure, accessible digital options, ensure payment channels are user-friendly, and partner with authorized providers, including government servicing banks. All efforts must align with the National Retail Payment System Framework and the Data Privacy Act.

LGUs are also expected to define clear procedures for issuing electronic invoices and billing notices, consistent with guidelines from the Commission on Audit and the Bangko Sentral ng Pilipinas.

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

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.