HIGHLY urbanized cities (HUCs) have already implemented some form of automation in business transaction processing even before the June 2021 deadline set by the Ease of Doing Business (EODB) and Efficient Government Service Delivery Act of 2018.
On Tuesday, the Anti-Red Tape Authority (Arta), Department of Trade and Industry (DTI), Department of Information and Communications Technology (DICT) and Department of the Interior and Local Government signed a joint memorandum circular (JMC) ordering the local government units (LGUs) to automate their business processing and licensing systems by June 17. This is in line with the provisions of the EODB law.
Relatedly, Arta also will sign on Thursday a circular laying down guidelines on what are deemed illegal fees and taxes imposed by LGUs, which hinder and make costlier the transport of goods and products as they cross territorial jurisdictions. Such requirements as “sticker fee” or “toll” or “market fee” are illegal, Arta stressed.
The JMC it signed on Tuesday directs the LGUs to set up an electronic business one-stop shop (eBoss) that can facilitate online submission of business permit applications; digital payment options; and issuance of electronic versions of permits, licenses or clearances.
“I am happy to say that each and every one of them, the highly urbanized cities and the cities, already have a measure of automation,” Arta Director General Jeremiah B. Belgica said during the virtual signing ceremony. He noted, however, that an end-to-end automated facility is required by the JMC.
According to DICT, 446 LGUs that signed a memorandum of agreement with the agency in relation to putting up an eBoss. Over 200 of them are already operational.
Arta said it will closely monitor the compliance of LGUs with the order, noting that evaluation will consider the systems on a case-by-case basis.
“We are going to look into the compliances of these LGUs together with DILG to understand [why they were not able to comply] or are they already in the process of compliance,” Belgica said. “However, if there is a very apparent disregard in the provisions of the law or of the JMC…then definitely it will lead to an investigation, even filing of a case for disregard of duty.”
The memorandum states that LGUs are encouraged to enforce a partly manual and partly electronic system—which should reduce the number of steps for business permit processing to less than four—as they transition to a fully automated system.
It standardizes the documentary requirements, steps and processing time of business registration. For example, the JMC mandates the creation of a unified application form of LGUs, which can be used for business permit, fire safety and inspection certificate and locational clearance, among others.
The number of signatories on permits are also limited to a maximum of three as per the memorandum.
“The establishment of the reengineered business permitting processes through the [eBoss] will potentially lead to more business registrations and higher revenues from business tax and fees for LGUs,” Trade Secretary Ramon Lopez said.
Illegal LGU fees
Arta is scheduled to sign on Thursday a circular, titled “Omnibus Guidelines on the Suspension of LGU Imposition and Collection of Illegal Fees and Taxes Relative to the transport of Goods and Products.”
It addresses the complaints lodged before the DILG about LGUs still collecting “fees, taxes and charges on the transportation of goods and products carried into or out of, or passing through the territorial jurisdictions of these LGUs in the guise of sticker fee, discharging fee, delivery fee, market fee, toll fee and/or mayor’s permit fee, among others.”
The circular orders relevant personnel and agencies to avoid “enforcing any existing ordinance authorizing the levy of fees and taxes on inter-province transport of goods or merchandise, regulatory fees in local ports, and other additional taxes, fees or charges in any form upon the transport of goods or merchandise.”
In addition, Arta is also looking forward to executing this month a supplemental circular to JMC 1 to harmonize the provisions in Bayanihan to Recover as One Act and the guidelines for the shared passive telecommunications tower infrastructure.
Image credits: Bloomberg