DOTr, LTO Prepare for Luzon-Wide Online Payment System Implementation for New Registration

The Department of Transportation--Land Transportation Office (DOTr-LTO) is gearing up to implement an online payment system for the initial registration fees for three years of new motor vehicles and motorcycles (MV/MC) in the whole of Luzon by November 2018, and the rest of the country before the end of the year.

The online system for LTO new registration transactions, which is currently available in Metro Manila, will soon expand to the rest of Luzon by November 2018, while it will be implemented in Visayas and Mindanao regional offices before the year ends.

The LTO-National Capital Region (NCR), under Regional Director Clarence V. Guinto, shared its experiences and insights on the online assessment and payment systems through orientation seminars at other regional offices in Luzon, in preparation for the Luzon-wide implementation of the online assessment and payment for registration of new MVs/MCs.

"People are not only expecting, but are demanding the availability of our services online," said LTO Assistant Secretary Edgar Galvante. "In the few months that we have been implementing this in Metro Manila, we reduced processing time and avoided heavy queuing for new registration transactions. In NCR, with the implementation of 'Moving Forward' and online payment project, OR/CR and motor vehicle plates are made available within three days after MV/MC dealers submit the documents."

LTO is using the Electronic Payment Assessment Tool (e-PAT), a web-based facility that computes the amount to be paid without human intervention thus eliminating the opportunity to bribe or extort. At present, LTO is one of the government agency which has adopted the tool. Other forms of payments such as fees for license application and renewal, as well as MV/MC renewal can be paid online by next year.

LTO has partnered with Land Bank of the Philippines (LBP) for this online payment transaction and with its current IT service provider, Stradcom Corporation.

The computed amount from the e-PAT and other details for the payment are then cascaded to the Land Bank of the Philippines--Electronic Payment Portal (LBP-EPP), where the motor vehicle/motorcycle (MV/MC) dealers can use their LBP account to pay for the transaction online. The payment will then be reflected at the LTO-Information Technology (IT) System. This enables faster issuance of the vehicle's Official Receipt (OR) and Certificate of Registration (CR).

The agency launched the use of Internet-based payment system for Metro Manila transactions last June. This initiative is in response to the call of President Rodrigo Duterte to eradicate corruption and red tape transactions in government agencies and in accordance to Republic Act No. 11032, otherwise known as "Ease of Doing Business and Efficient Government Service Delivery Act of 2018."