Gov't shouldn't make a killing off online transactions, says Recto

The digitalization of government transactions shouldn't become a pocket-draining experience for Filipinos, House Deputy Speaker and Batangas 6th district Rep. Ralph Recto said.

“Online processing should not cause the uptick of fees...because the benefit that IT (information technology)-based services bring should not be cancelled by its cost," Recto said in a statement Sunday, March 5.

He said that, In pricing online services, such as the processing of documents, government agencies should follow the established rule “that in setting fees and charges, the intention is to recoup the cost of extending that service, plus a reasonable surcharge, not to profit from it".

“ IT boom in the bureaucracy should not lead to permit and licenses cost inflation," stressed Recto, a former Senate President pro tempore.

To keep state fees and charges in check, Recto urged the Palace to create a body that will regularly evaluate the rates.

“If digitalization cuts costs, then the savings must be passed on to the citizen. IT is not a profit center, but a client-service tool,” Recto said.

But the House leader also said that prices shouldn't be too law either, or else the government would incur losses.

Recto said the national government targets to collect P48.8 billion in fees and charges this year, an income it books as non-tax revenues.

This, he explained, is the tip of the iceberg as local governments are projected to rake in P321.5 billion from local sources this year, with business tax accounting for P129.2 billion, and regulatory fees adding P27.6 billion.

“In principle, local governments should be supported in their drive to reduce dependency on national government funding downloads,” he said.