LTO Marks PHP1-Billion Online Payment Collection

The Land Transportation Office (LTO) has revealed that its online payment collection for the initial registration of motor vehicles has reached more than PHP1 billion last June 2019, barely a year after implementing the online payment for the registration of brand-new motor vehicles.

To mark this milestone, the agency is set to acknowledge avid supporters and partners who have contributed to the success of the program.

The awarding ceremony, scheduled tomorrow on August 15, in Quezon City, will recognize the top users of the online system, institutional partners, selected individual partners, and LTO personnel.

LTO Assistant Secretary Edgar C. Galvante noted, "The LTO would like to recognize the contributions of our partners in this endeavor."

"This technology-driven innovation in the payment collection system for new motor vehicle registration significantly reduced human intervention in the cash management system. This translates to decreased opportunities for corrupt practices in payment, and more efficient payment collection," the LTO chief explained.

LTO-National Capital Region (NCR) West Regional Director Atty. Clarence V. Guinto said, "The Agency, through the LTO-NCR West, was able to collect a total of PHP 1.117 billion since the introduction of the online payment system for (the) initial registration of brand-new vehicles in October 2018 up to June 2019."

The LTO uses the Landbank Electronic Payment Portal (LBP-ePP), an alternative payment channel that allows clients to pay the initial registration of brand-new motor vehicle via the internet.

Currently, the online payment system is being implemented in the LTO National Capital West and Regional Office 3, and soon, in other regional offices.

The LTO-NCR West complemented the LBP-ePP with an online assessment system called the LTO Electronic Payment Assessment Tool (LTO-ePAT). It is a facility that automatically computes the exact amount due for a three-year registration.

Guinto said that the online payment program is a concrete step towards achieving the goal, 'OR/CR/Plaka, bago lumabas sa casa'-- to release the OR (original receipt)/CR (certificate of registration), vehicle plate and RFID (radio frequency identification) of motor vehicles to owners at the point of sales.

"The use of the online facility has significantly reduced the processing time of registration from seven days to three days," Guinto added.

He said these web-based applications have facilitated the assessment and payment of new registration for motor vehicle (MV) and motorcycle (MC) dealers. Thus, the reduced processing time for initial registration of vehicles.

These initiatives are in compliance to Republic Act 11032, also known as the "Ease of Doing Business and Efficient Government Service Delivery Act of 2018," which aims to reduce processing time, cut bureaucratic red tape, and eliminate corrupt practices.

The cashless modern facility transaction is the first of its kind not only in the LTO but in the Philippine bureaucracy.

Galvante said the LTO-NCR piloted the online payment system project, in cooperation with selected car dealers in the region, last October 2018.

He further emphasized that the issue of delay in the issuance of OR, CR, and plates has been addressed through the online payment system.

The online payment system was made possible through a Memorandum of Agreement with Landbak and the Bureau of Treasury (BTr) signed last December 1, 2017.

Another tripartite Memorandum of Agreement was inked last August 17, 2018 with LTO Assistant Secretary Edgar C. Galvante, then-LBP President Alex V. Buenaventura, and BTr Treasurer Rosalia V. de Leon for the program’s nationwide implementation.

Under the new DOTr-IT System, the mode of payment will be expanded to include all banks, payment centers, payment kiosks, etc.

In the pipeline is the online payment for other transactions like renewal of driver's licenses and motor vehicles, and payment of fines for law enforcement violations.