Metro Manila, Philippines – Local government units (LGUs) are being pushed to shift toward cashless transactions for collecting taxes, fees, and other government charges.

In a memorandum released on Sunday, May 17, the Department of Interior and Local Government (DILG) urged LGUs to adopt electronic payment and collection systems (EPCS) as an alternative to traditional cash payments.

“LGUs are encouraged to offer secure, accessible digital options, ensure payment channels are user-friendly, and partner with authorized providers, including government servicing banks,” the department said.

It said local offices should also collect local taxes, fees, and other charges through digital platforms in line with Executive Order No. 170, s. 2022, which mandates the use of digital payments for government transactions.

To ensure secure and compliant transactions, the department ordered LGUs to align their systems with the National Retail Payment System Framework and the Data Privacy Act.

LGUs are also tasked to establish clear procedures for issuing electronic invoices and billing notices and pass local policies to support the shift to cashless systems.

While promoting cashless payments, LGUs will continue to accommodate cash and other traditional payment methods.