The Department of the Interior and Local Government (DILG) in the Philippines has urged all local government units (LGUs) to transition to cashless transactions for the collection of taxes, fees, and other government charges.

This initiative is based on a recent memorandum circular released by the DILG, which emphasizes the importance of adopting digital payment systems.

According to the DILG, the shift to cashless payments is expected to enhance transparency and efficiency in public financial transactions.

The department's memorandum highlights that digital payment methods can facilitate smoother transactions for the public, thereby improving overall services.

Furthermore, the DILG has advised LGUs to align their payment systems with the National Retail Payment System Framework and to adhere to the Data Privacy Act.

These measures are recommended to ensure that transactions are secure and compliant with established regulations.

The agency has also mandated that LGUs develop clear guidelines for issuing electronic invoices in accordance with the standards set by the Commission on Audit and the Bangko Sentral ng Pilipinas (Central Bank of the Philippines).

While advocating for the adoption of cashless payments, the DILG clarified that LGUs are still required to accept cash and other traditional payment methods.

This stipulation is aimed at ensuring that all constituents have access to government services, regardless of their familiarity or comfort with digital transactions.

Moreover, local governments have been encouraged to enact local ordinances and policies that will facilitate the comprehensive adoption of cashless payment systems across their jurisdictions.