In a recent announcement, Interior Secretary Benjamin Abalos Jr. highlighted the significant impact of digitalization efforts on the tax revenue collection of local government units (LGUs) in the Philippines. The implementation of digital systems and processes has resulted in a remarkable increase in tax revenue, soaring from P50 billion in 2018 to an impressive P208 billion.
During a sectoral meeting with President Ferdinand Marcos Jr. at Malacañang, Abalos provided an update on the compliance of LGUs with the digitalization of government services. As of December last year, 921 LGUs, accounting for 60 percent of all local government units, have successfully adopted a business permit system. Among these, 799 LGUs have implemented the eLGU system, while 122 localities have developed their own digital systems.
Abalos emphasized the positive impact of these digitalization efforts on the ease of doing business in the country. He highlighted the substantial increase in the number of registered businesses, which has surged from 1.3 million to an impressive 4.7 million. This exponential growth can be attributed to the various reforms and streamlined processes that have been implemented.
Furthermore, Abalos drew attention to the remarkable increase in tax revenue collection at the local level. The collection of taxes has quadrupled, rising from P50 billion in 2018 to an impressive P208 billion. This significant increase in tax revenue showcases the effectiveness of digitalization in improving the efficiency of tax collection processes.
The implementation of digital systems and processes has not only simplified the business permit application process but has also enhanced transparency and accountability in tax collection. By digitizing these processes, LGUs have been able to streamline operations, reduce paperwork, and ensure a smoother experience for businesses and taxpayers alike.
This success story serves as a testament to the positive impact of embracing digitalization in government services. By leveraging technology and digital platforms, LGUs have been able to create an environment conducive to business growth and economic development. The digitalization of government services has not only attracted more businesses to register but has also improved the overall ease of doing business in the Philippines.
It is important to note that the increase in tax revenue collection is not solely a result of digitalization efforts. The commitment and dedication of the LGUs in implementing these reforms have played a crucial role in achieving such remarkable results. The collaboration between the government and the private sector has also been instrumental in driving this positive change.
As the Philippines continues to embrace digital transformation, it is essential for LGUs to prioritize the development and implementation of robust digital systems. This will not only enhance tax collection processes but also improve overall governance and service delivery. By investing in digital infrastructure and capacity-building initiatives, LGUs can ensure the sustainability and long-term success of their digitalization efforts.
In conclusion, the digitalization efforts of local government units in the Philippines have yielded impressive results, particularly in the area of tax revenue collection. The adoption of digital systems and processes has led to a fourfold increase in tax revenue, demonstrating the positive impact of digitalization on government services. As the country continues to progress towards a digital future, it is crucial for LGUs to prioritize and invest in digital infrastructure to further enhance governance and service delivery.
Source: The Manila Times
