DILG initiatives in Support of

Ease of Doing Business and Efficient

Delivery of Government Services Act
of 2018 (RA 11032)
and input to its IRR

Dir ANNA LIZA BONAGUA

Bureau of Local Government Development
Department of the Interior and Local Government
 Coverage

National Government Local Government Units Government Owned &

Agencies (NGAs) (LGUs) Controlled Corporations
(GOCCs)

Other Government Instrumentalities

(whether located in the Philippines or abroad)

Providing services covering

business and non-business related transactions
 DILG Initiatives in
Support of EODB Act
(RA 11032)
Pending issuance of IRR, DILG initiatives as far as the
LGUs are concerned:

• Develop and implement policies on ease of doing

business and anti-red tape reform initiatives;

• Provide technical assistance in the reengineering of

regulations and procedures and review proposed local
legislation;

• Monitor and evaluate the compliance of LGUs, and

issue note of warning to erring/non complying LGUs.
 Policies in Support of
EODB Act
(RA 11032)
1. Reengineering of Systems and Procedures

2. Streamlining Regulatory Services

❑ Business Permits and Licensing System
❑ Building Permit and Occupancy Permit

3. Rationalization of Fees and Charges

4. Integration of Barangay Clearance in Business

Permit Process
 Reengineering of
Systems and Procedures
(in compliance to Sec 5)
Pending approval of the IRR, the DILG issued
DILG MC 2018-214: Reengineering of
LGUs Systems and Procedures in
Compliance to EODB-EGSD Act of 2018

• Undertake cost compliance analysis, time

and motion studies, evaluation and
improvement of their transaction systems
and procedures

• Review existing laws, executive issuance

and local ordinances and recommend
repeal

• Undergo regulatory impact assessment to

the proposed regulations
 Reduced Processing
Time and Signatories
(Sec. 9)
LGU Compliance to DILG MC
2018-214: Reengineering … Simple transactions

• Inventory of all LGU

transactions Complex transactions

• Enable DILG to standardize Highly Technical

these transaction according to Application
the prescribed processing
timelines

45
working days For those requiring
another
twenty (20)
Sanggunian Actions
working days
extension
Streamlining
Business Permits and
Licensing System
 Streamlining of
Issuance of Local Business Licenses
(in compliance to Sec. 11)
DILG-DTI-DICT JMC 2016-1: Revised
Standards on the Issuance of Business
Permit

• Use of Unified Business Application

Form

• Establishment of Business One Stop

Shop (BOSS)

• Automation of their business

permitting and licensing system

• Provision of standards for BPLS

 BPLS Standards
DILG-DTI-DICTJMC No.01 series of 2016
New Application Renewal
One (1) day, or two (2) days Less than one (1) day, or one
At most (1) full day at most

No. of Steps
At most three (3) steps for both new and renewal of
business registration

Use of Unified Form

Unified Form (Print document and Electronic document)

No. of Signatories
at most two (2) signatories – the Mayor and Treasurer/BPLO
with alternative approving signatories
 BPLS Complementary Reforms
DILG-DTI-DICTJMC No.01 series of 2016
Streamlining Automation of BPLS process
procedures for
securing Fire Safety Online applications
Inspection Certificates
(FSIC)
Electronic means (e.g.
Setting-up of a electronic mail) of providing
Business One-Stop- businesses with tax order of
Shop (BOSS) payments
Conducting joint
Inspections for licenses
and permits Online-payments

Computerizing and
automating business Online means (e.g.
permit application electronic mail) for
processes transmitting business
permit and other
Use of Online and corresponding clearances
Electronic mechanisms and permits or via courier
for more efficient services;
business processing
 PERCENTAGE OF RESPONDENTS

Responded,
97.89% Remaining,
2.11%, 2%

Responded Remaining

Out of 1,516 Cities/Municipalities (except ARMM), 1,484 (97.89%) responded in our

Online Monitoring Survey.
 LGUs Compliance to BPLS Standards

New Business Application

120.00%

100.00% 96.37%
87.99% 90.04%
84.96%
80.00%

60.00%

40.00%

20.00% 15.04%
12.01% 9.96%
3.63%
0.00%
Use of Unified Form No. of Steps No. of Signature Processing Time
Compliant Non-compliant
 LGUs Compliance to BPLS Standards
Renewal of Business Permit
120.00%

100.00% 95.58%
86.02% 87.99% 89.45%
80.00%

60.00%

40.00%

20.00% 13.98% 12.01% 10.55%

4.42%
0.00%
Use of Unified No. of Steps No. of Signature Processing Time
Form
Compliant Non-compliant
 Overall LGU Compliance
New Application Renewal Application

77.64% 77.51%
1,177 LGUs are compliant 1,175 LGUs are compliant
in the revised standards in in the revised standards in
processing Business processing Business
Permit and Licenses Permit and Licenses

Source: https://docs.google.com/spreadsheets/d/1rK3209I0rh4ab3OGPCQIMzK4ifczKUPhr0mE9HCzDdA/edit?usp=drive_web
Overall LGU Compliance
Both Application

74.54%
1,130 LGUs are compliant
in the revised standards in
processing Business
Permit and Licenses
 Business Registration and Collection, 2018
Region Business Registration Business Registration Collection
NCR 317,269 ₱ 25,649,203,902.11
CAR 45,442 ₱ 723,789,121.19
REGION I 109,655 ₱ 1,983,042,857.69
REGION II 31,284 ₱ 6,036,896,078.73
REGION III 137,863 ₱ 3,198,788,030.18
REGION IV-A 214,095 ₱ 7,773,513,090.96
MIMAROPA 2,238 ₱ 11,978,550.00
REGION V 16,773 ₱ 246,494,743.89
REGION VI 62,838 ₱ 925,292,900.81
REGION VII 104,237 ₱ 3,049,023,727.81
REGION VIII 47,325 ₱ 662,387,835.06
REGION IX 27,689 ₱ 626,232,187.69
REGION X 54,781 ₱ 827,221,657.85
REGION XI 38,798 ₱ 627,541,870.90
REGION XII 66,830 ₱ 730,912,659.25
REGION XIII 27,481 ₱ 694,638,183.11
TOTAL 1,304,598 PHP 53,766,957,397.22
 Distribution of Business Registration, 2018
Number of Business Establishment Registered
REGION XIII 27,481
REGION XII 66,830
REGION XI 38,798
REGION X 54,781
REGION IX 27,689
REGION VIII 47,325
REGION VII 104,237
REGION VI 62,838
REGION V 16,773
MIMAROPA 2,238
REGION IV-A 214,095
REGION III 137,863
REGION II 31,284
REGION I 109,655
CAR 45,442
NCR 317,269

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

 Distribution of Business Registration Collection, 2018
Total amount of collections from business taxes, fees and charges
REGION XIII ₱694,638,183.11
REGION XII ₱730,912,659.25
REGION XI ₱627,541,870.90
REGION X ₱827,221,657.85
REGION IX ₱626,232,187.69
REGION VIII ₱662,387,835.06
REGION VII ₱3,049,023,727.81
REGION VI ₱925,292,900.81
REGION V ₱246,494,743.89
MIMAROPA ₱11,978,550.00
REGION IV-A ₱7,773,513,090.96
REGION III ₱3,198,788,030.18
REGION II ₱6,036,896,078.73
REGION I ₱1,983,042,857.69
CAR ₱723,789,121.19
NCR ₱25,649,203,902.11

₱- ₱10,000,000,000.00 ₱20,000,000,000.00 ₱30,000,000,000.00

Streamlining
Construction Permit and
Certificate of Occupancy
 Streamlining of
Issuance of Local Business Licenses
(in compliance to Sec. 11)
DILG-DPWH-DTI-DICT JMC 2018-1:
Guidelines in Streamlining Building
Permit and Certificate of Occupancy

• Use of Unified Business Application

Form

• Establishment of Business One Stop

Shop (BOSS)

• Automation of their business

permitting and licensing system

• Provision of standards for BPCO

STEPS IN SECURING BUILDING PERMIT
Rationalization of Fees and
Charges
 Purpose of
Rationalization of Fees and
Charges
• Ensure uniform procedure in setting reasonable fees and
charges as provided under LGC (RA 7160)
• Set a balance between recovering cost of services and ease
of doing business in compliance with EODB Act (RA 11032)

Determination of amount of fees and charges

• shall be a balance between recovering cost of
services rendered and socio-economic impact of such
imposition
• shall be based on the regulatory impact assessment
and stakeholders consultation to ensure rate are just
and reasonable
Integrating Barangay Clearance
in City/Municipality
Permitting Processes
 Purpose of the
Integration

Ease of Doing Business and Efficient Delivery of

Services (EODB/EGDS Act/RA 11032), Sec. 11 (f)
• Barangay Clearances and Permit related to doing business shall be
applied, issued and collected at the city/ municipality in
accordance with the processing time of said Act. Provided that the
share in the collections shall be remitted to the respective
barangays.

• The pertinent provisions of RA 7160, specifically Article IV, Section

152(c) is hereby amended.
 Operationalization of
Integration
Barangays
• Issue Barangay Ordinance consolidating all fees and charges
related to business and building permits as basis for collection,
allowing city/ municipality to collect
• Designate their representative to be assigned in the One-Stop Shop
to facilitate the issuance of Barangay clearance (co-location)
• If necessary, join Zoning Officer, the conduct of visit/inspection in
relation to the issuance of Barangay Clearance
• Issue barangay clearance to applicants through the
city/municipality in accordance with the processing time set under
RA 11032
 Operationalization of
Integration
City/Municipality

• Provide the necessary space and equipment for the representative

of the Barangays in the One-Stop Shop to facilitate the issuance of
Barangay clearance (co-location)
• Include Barangay Clearance Fees accordance with the submitted
Barangay Ordinance in the One-time Assessment of fees for
Business and Building Permits
• Collect Barangay Clearance fees in the One-time Payment of fees
and charges for business/building permits in
• Remit the collected Barangay fees on the 7th day of the following
month (or agreed timelines) with the list of issued Business and
Building Permits
 Report Card Survey (in
(In compliance to Sec. 20)

Report Card Survey to obtain feedback and

information compliance with the
requirements under the Citizen Charter.

Report Card will also be used as basis for

granting of awards, recognition, and/or
incentives for excellent delivery of services
in all government agencies.
 Compliance Monitoring Mechanisms
(3 levels)
LGU On-line compliance reporting/monitoring system
➢ thru a google drive

DILG Compliance Audit

➢ on-site review and assessment of process vs
standards

Client Satisfaction Survey

➢ Annual Client Satisfaction Survey of DTI and
PCCI
➢ Client On-line Feedback after every transaction
thru an online App “Rate my LGU
Service”
 Rate My Service
• a citizen feedback
mechanism is being
institutionalized to provide
feedback on compliance
and performance of LGUs.

• result of the survey shall

also become basis for the
grant of awards,
recognition and/or
incentives.

Can be access 24/7 at url:

Ratemyservice.dilg.gov.ph
 Other Provisions that
need to be address in the IRR

Business permit shall be valid for a period of 1 year. The

city/municipality may have the option to renew business
permits within the 1st month of the year or on the
anniversary date of the issuance of the business permit.
(Sec 11)

All government agencies including local government

units (LGUs) shall adopt a zero-contact policy. (Sec 7)

Automatic Approval or Automatic Extensions (Sec. 10)

If a government office or agency fails to approve or
disapprove an original application or renewal or request
within the prescribed processing time, said application or
request shall be deemed approved/renewed:
www.dilg.gov.ph

localfiscal.dilg@gmail.com

+632 929-9235
+632 927-7853