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Adopt cashless payments in gov't transactions, DILG urges LGU

Published May 17, 2025 12:51 pm  |  Updated May 17, 2025 01:54 pm

At A Glance

  • The DILG asserted that digital payments improve transparency, efficiency and public convenience 
(MB FILE PHOTO)
(MB FILE PHOTO)

The Department of the Interior and Local Government (DILG) called on the local government units (LGUs) on Saturday, May 17, to promote electronic payment and collection systems as an alternative to the traditional mode of payment in government transactions.

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

Further, the DILG asserted that digital payments improve transparency, efficiency and public convenience with the LGUs being 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,’’ the DILG emphasized.

“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,’’ it added.

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

To support its full implementation, the DILG prodded the LGUs 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. 

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