Efficient LGUs get perks

Local government units that are adopting more efficient and simpler systems for registering businesses can expect to increase their respective revenues by 12 percent to 15 percent, according to the National Competitiveness Council.

Guillermo Luz, NCC co-chairman for the private sector, said Thursday that 126 LGUs have streamlined their business permits and licensing systems (BPLS) through a program that the Departments of Trade and Industry and Local Government had launched.

Luz said these LGUs have reported significant improvement in their tax revenues, citing as examples General Santos City with a gain of 15 percent and San Fernando City in Pampanga with 12.6 percent.

“LGUs should realize that it is important to streamline their BPLS,” Luz said. “This way, they attract more investments aside from earning more in taxes.”

NCC data show that San Fernando City earned P127.6 million in the first quarter, rising from P113.3 million in the same period last year.

The BPLS streamlining program is aimed at enabling LGUs to adopt a single application form—the same one used going through permits from various government agencies—to reduce the number of steps of the process and thereby shorten the processing time, and cutting the number of signatures needed to secure permits.

San Fernando City was able to reduce its BPLS process to two steps, needing only one signature. Using a unified form, registration takes only 25 minutes.

According to Luz, the NCC has targeted 480 LGUs for enlistment in the program, including 86 of the 126 LGUs who have completed all the necessary processes in streamlining their BPLS.

“The remaining 40 LGUs were not on the priority list but joined the program voluntarily,” Luz said. “We don’t turn away such LGUs, in fact, they are most welcome.”

He said there are 82 more LGUs that are currently undertaking the program.

Priority LGUs are those with the most number of business establishments; those with high investment potential in priority sectors like agribusiness, mining, tourism, and business process outsourcing; and those which had received grants specifically for BPLS streamlining.

“The other criteria are the willingness of the LGU to reform its processes and the commitment of the private sector to participate in the reform process,” Luz said.

“To measure the effectiveness of the program and the efficiency of the BPLS of LGUs, the NCC will conduct a client satisfaction survey in the key cities outside Metro Manila,” he added.