Although initiating and managing a business can be challenging, the Ease of Doing Business Act aims to simplify the process by eliminating cumbersome bureaucratic procedures.

For Secretary Ernesto Perez, head of the Anti-Red Tape Authority, or ARTA, it is by embracing the challenge that strengths are built.

The creation of the Electronic Business One Stop Shop or eBOSS was necessitated by the enactment of the Ease of Doing Business Law. Its primary objective is to automate the process of company licensing and permits, enabling local governments to electronically issue tax bills, payment orders, permits, licenses, and clearances and accept applications and payments.

Perez recognized that numerous government processes remain antiquated and reliant on manual procedures, rendering them vulnerable to exploitation.

"When there is too much bureaucracy and paperwork involved in government processes, it opens up opportunities for corruption," he said.

With confidence, he asserted that by streamlining and implementing digitalization, the reduction of bureaucracy will result in increased efficiency and transparency within government processes.

He believes this will resolve complaints from foreign companies and local businesses about how hard it is to do business or how not to do it.

In one of the President's business trips, Perez said foreign investors expressed concern about how hard it was to deal with local government units (LGUs), the Bureau of Customs, and other government agencies.

He was told that several local government units still need to comply with the eBOSS processes.

Carrot approach

As of March 2022, only 219 LGUs have fully automated eBOSS setups, while another 287 have partially automated eBOSS. This means only 31 percent of LGUs have set up their eBOSS processes or are almost there. This means that business permits can be issued more quickly.

Of the country's 1,634 total LGUs, only 13 percent have eBOSS set up and working.

Perez said they are trying to enlist more LGUs to comply by pursuing a carrot instead of a stick approach.

"The focus is really on the enabling and capacitating side. Bigyan natin ng pagkakataon (Let's give them time)," Perez said.

One plan is to give new awards to LGUs that follow all the rules. In March, ARTA teamed up with the UK government to create the Philippine Good Regulatory Principles Recognition and Awards Program. In November, we'll find out who won the first year.

ARTA is also appealing to LGUs because it could bring more money to their community and the country. The agency said data shows that LGU income went up after their eBOSS was fully active.

Perez said only five of the 17 cities and municipalities in the National Capital Region have fully set up and operationalized an eBOSS, namely Muntinlupa, Parañaque, Valenzuela, Manila and Quezon City.

"All of these cities that have followed through on their promises have seen a big rise in the number of businesses that have registered and the revenues they bring in," Perez said.

On right track

The agency's streamlining and digitalization efforts are on the right track to combat red tape and corruption in the Philippines.

"There is light at the end of the tunnel," Perez said. "ARTA is determined to implement programs and initiatives to make it easier for businesses to operate and for Filipinos to access government services."

Internet connectivity issues

Internet connectivity is an indispensable component for the effectiveness of digitalization.

Consequently, ARTA is actively addressing the issues reported by Local Government Units that hinder their compliance with regulations. The lack of appropriate infrastructure and connectivity has been identified as a significant obstacle numerous LGUs face in adapting and keeping pace.

In collaboration with the Department of Information and Communications Technology, ARTA has developed eBOSS software, which is available free of charge to Local Government Units. This initiative is particularly beneficial for financially constrained LGUs that need help to procure their own software solutions.

It extends its support to financially constrained LGUs and other government departments by providing them with complimentary computer systems and training. These initiatives are part of collaborative efforts between the government and
public-private partnerships.

Through the "Pinas Bilis" program, ARTA, in partnership with the Aboitiz Group, assists local governments in enhancing their services by offering training and opportunities for improvement.

Additionally, ARTA and Meralco are collaborating on the "Paspas Pilipinas Paspas" program, which involves the distribution of 500 computers to LGUs and providing them with guidance on effective utilization.

"Setting up and operationalizing an eBOSS in one LGU would require five to seven computers. So, with that 500 computers to be donated, it can cover only 166 LGUs," Perez said.

With Meralco's commitment and even their sister companies, he is optimistic.

"I am very positive that we will cover all LGUs so that there is no excuse for them not to comply," he said.

ARTA is also collaborating with the Department of Energy to simplify the permitting procedure for energy projects and develop a digital platform specifically designed for energy permits.

He lamented that some LGUs continue to demand pass-through fees from the logistics sector, which contravenes the provisions of the local government code.

Perez was referring to the Department of the Interior and Local Government's 2018 Memorandum on Omnibus Guidelines on the Suspension of LGU Imposition and Collection of Illegal Fees and Taxes Relative to Transport Goods and Products.

"(The pass-through fees) added undue burden to the logistics sector," Perez said. Hence, he said ARTA has proposed issuing an executive order from President Ferdinand Marcos Jr. to solve the issue of pass-through fees.

On top of other public and private joint projects, developing a digital platform for business permits is underway. This platform will enable businesses to conveniently apply for and renew their permits online, providing them with a simplified means to track the progress of their applications.

Soon enough, bureaucratic hurdles will be minimized, and the efficiency and accessibility of government services will be enhanced.

The positive effects of streamlining processes and embracing digitalization in the ongoing battle against red tape and corruption in the Philippines are becoming increasingly evident. In time, Filipinos will see the tangible benefits of ARTA's initiatives that will contribute to a more business-friendly environment and attract more significant investment opportunities.

Efficiency, transparency and accountability in government processes are within reach.