President Duterte orders gov’t agencies to use digital payment systems!

Rodrigo Duterte just issued an executive order for the adoption of digitized payments for government disbursement and collections.

File photo: PayMaya is rebranded as Maya

An option for digital payment of fees, taxes, and tolls soon

Allegedly, the purpose of this executive order is to "promote efficient delivery of services, expedite transactions, boost revenue and reduce the risk of graft and corruption."

Under Executive Order 170, all departments, agencies, and instrumentalities of the government, including state universities and colleges and government-owned or government-controlled corporations, should adopt digital payments for their disbursements and collections. Local government units are also commanded to do the same.

According to the source, all government agencies must use "safe and efficient" digital disbursement in the payment of goods, services, and other disbursements. The memo includes activities such as the distribution of financial assistance, payment of salaries, wages, allowances, and other compensation to employees.

Under the order, they are allowed to disburse funds directly into the transaction accounts of recipients of beneficiaries. Meanwhile, agencies under the order should also implement a business continuity plan to prepare for calamities and other emergencies where digital payments may not be affected.

Agencies, on the other hand, are mandated to offer a digital mode of collecting payments for taxes, fees, tolls, and other charges. The order reads,

It is understood that this Order does not foreclose the acceptance of cash and other traditional modes of payment.

aIn light of this situation, agencies should employ the services of established payment service providers. Moreover, the order indicates that they must form a technical working group on the adoption of digital payments. The said group will provide "guidance and promote cost-efficiency and transparency: in the digital payment solutions.

The group shall be composed of representatives from the following: Department of Finance (DOF), Department of Budget and Management (DBM), Bureau of Treasury (BTr), Bureau of Internal Revenue, Government Procurement Policy Board Technical Support Office.

The DOF, along with the Bangko Sentral ng Pilipinas, Commission on Audit DBM, BTr, BIR, and other relevant agencies shall issue the essential rules and regulations for implementation within 90 days from the effectivity of the EO.

All covered agencies are required to ensure the proper transition of their disbursement and collection procedures and policies. Also, they should fully implement digital disbursements and collections within six months from the issuance of the IRR of the EO.

What do you think of this new order?

Source: Inquirer