The computer age has not only brought promise but also challenges to local governments in the Philippines. When not in used as part of a larger strategy, computers become expensive and glorified typewriters. But when used strategically, computers become a wise investment for LGUs. Information technology can help not only to store and access data but also to control crucial functions – and thereby help stop graft and corruption. Cebu’s tax computerization program is an example of Information technology strategically utilized.

      An age-old problem in tax collection is graft and inefficiency. To address, these problems, the Cebu government in 1986 began to create its own computer program for both tax assessment and collection. This automated process has helped the city government to fire its former assessor and two staff members due to corruption. It has also eliminated opportunities for further anomalous practices. Cebu City’s software takes inputs of the physical characteristics and location of properties to automatically appraise real estate values and calculate the tax due. Of P130,000 such computer assessments made so far, only 200 or 1/100th of one percent were noted by the city assessor for further review.

      The benefits for citizens and the city are impressive. By automating assessment, the city government has minimized graft and made tax payments faster and more predictable for citizens. By increasing its assessment and collection efficiency, the city projected that could increase its tax receipts by at least 100 million pesos in 1994. This increase was in spite of reduced tax rates to more realistic market values.

      Other local jurisdictions are eager to replicate Cebu’s success. The city has begun to be consultant to other LGUs on taxation and is converting its software for use on microcomputers by smaller municipalities without mainframe computer hardware.