The Department of Finance (DOF) has called on local government units (LGUs) to adopt digital technologies in tax administration and other business processes, to boost their revenue generation and mobilization capabilities under the new normal.
Finance Secretary Carlos Dominguez assured local executives the DOF and its attached agency, the Bureau of Local Government Finance (BLGF), are prepared to support LGUs in modernizing and professionalizing the local treasury and assessment service, and in helping them with their digital transition initiatives.
“We owe our constituents digital transformation of local governance,” Dominguez said in his pre-recorded keynote speech at the BLGF Stakeholders Recognition Program held yesterday.
He said with the revenue share in national taxes of LGUs due to increase dramatically starting next year, the local governments will be primarily responsible and accountable for providing their constituents with the basic services and facilities fully devolved to them.
These expanded responsibilities devolved to them mean that LGUs have to beef up their revenue collection and absorptive capacities as they build their way towards becoming self-reliant communities, he added.
LGUs will also play a key role in the country’s economic recovery that is now gaining momentum as provinces, cities and municipalities are expected “to lead in the grassroots planning, community infrastructure, and the initiation of more linkages to the economic mainstream on behalf of their constituents,” Dominguez said.
To accomplish these tasks, Dominguez said LGUs should adopt electronic facilities for business registration and renewal, as well as for the assessment and collection of local taxes, fees and other charges.
The local treasurers, for their part, should start linking up with the online payment facilities already offered by government financial institutions, which also serve as their depository and servicing banks to ensure safe, efficient and convenient ways of transacting with LGUs under the new normal, Dominguez said. – Angela Celis
