Summary of Amendments to the Anti-Red Tape Act Sec. 4.

Definition of Terms:

1. Title Change: 1. Action: Written approval or disapproval made

by a government office on an application or
• The Act is now called the Ease of Doing Business
request.
and Efficient Government Service Delivery Act
of 2018. 2. Business One Stop Shop (BOSS): A single
common site or online portal for the Business
2. Declaration of Policy:
Permit and Licensing System (BPLS) of an LGU
• The State aims to promote: to process applications, receive payments, and
issue licenses, clearances, permits, or
o Integrity and Accountability in public service. authorizations.
o Proper Management of public affairs and 3. Business-related Transactions: Regulatory
property. requirements a business entity must comply
o Efficient Delivery of government services. with to engage or continue operating, including
documentation, submission to authorities, and
o Prevention of Graft and Corruption. obtaining permits.
• Agencies must ensure: 4. Complex Transactions: Applications that require
o Honesty and Responsibility among public evaluation of complicated issues by a
officials. government officer.

o Transparency in public transactions. 5. Fixer: Any individual who facilitates speedy

completion of transactions in government for
o Adoption of simplified requirements and personal gain.
procedures to reduce red tape and expedite
both business and nonbusiness transactions. 6. Government Service: The process or
transaction between applicants and
3. Coverage: government offices involving applications for
privileges, licenses, clearances, or
• The Act applies to:
modifications.
o All government offices and agencies
7. Highly Technical Application: An application
(including local government units).
requiring specialized knowledge or skills for
o Government-owned or controlled processing and evaluation.
corporations.
8. Nonbusiness Transactions: Government
o Other government instrumentalities, both in transactions not related to business activities.
the Philippines and abroad, involved in
9. Officer or Employee: A person employed in a
business and nonbusiness transactions.
government office responsible for processing
applications.

10. Processing Time: The time from receipt of a

complete application to the issuance of
certification or similar documents.

11. Red Tape: Regulations or procedures that are

ineffective or detrimental in achieving their
objectives, resulting in slow outcomes.

12. Regulation: Legal instruments that implement

government policy, including licensing and
compliance requirements.

13. Simple Transactions: Applications requiring only

ministerial actions or presenting
inconsequential issues for resolution.
Sec. 5. Reengineering of Systems and Procedures: Sec. 6. Citizen’s Charter:

1. Mandate for Government Agencies: All offices 1. Establishment Requirement:

and agencies providing government services
o All government agencies (including
must regularly conduct:
departments, bureaus, offices,
o Cost compliance analysis instrumentalities, government-owned or
controlled corporations, and LGUs) must
o Time and motion studies
create a Citizen’s Charter.
o Evaluation and improvement of their
2. Content of the Charter:
transaction systems
o The Citizen’s Charter must be updated and
They should reengineer their systems if necessary to
displayed in the following formats:
reduce bureaucratic red tape and processing time.
▪ Information billboards at the main
2. Role of the Anti-Red Tape Authority:
entrance or conspicuous locations in
o This authority will coordinate with all their offices.
relevant government offices to review
▪ On their official websites.
existing laws, executive issuances, and local
ordinances. ▪ In published materials written in
English, Filipino, or the local dialect.
o They will recommend repeal of any outdated
or redundant regulations that impose undue 3. Details to Include:
burdens on the public.
o Checklist of Requirements: A
3. Regulatory Impact Assessment: comprehensive and uniform list of what is
needed for each type of application or
o Proposed regulations by government
request.
agencies must undergo an assessment to
ensure they do not create unnecessary o Service Procedure: Clear steps to obtain a
burdens or costs. particular service.

o If needed, proposed regulations may have a o Responsible Persons: Identification of who

pilot implementation phase to evaluate their is responsible for each step of the process.
impact.
o Maximum Processing Time: The maximum
4. Review Initiation by LGUs and NGAs: time frame for concluding the process.

o Upon the effectivity of the Act, Local o Documents Needed: Any documents the
Government Units (LGUs) and National applicant must present, if applicable.
Government Agencies (NGAs) must start
o Fees: Information on any fees that may be
reviewing existing policies and operations.
required.
o They are to begin reengineering their
o Complaints Procedure: A clear outline of
systems and procedures in alignment with
how to file complaints.
this Act, pending the approval of the
implementing rules and regulations (IRR).
Sec. 7. Zero-Contact Policy Sec. 9. Accessing Government Services

• Contact Limitation: • (a) Acceptance of Applications or Requests:

o No government officer or employee may o Officers must accept written applications

have contact with applicants or requesting and perform a preliminary assessment to
parties regarding applications or requests, check for deficiencies, informing applicants
except during the initial assessment and immediately. Each application will receive a
evaluation of submitted requirements. unique identification number and an
acknowledgment receipt.
• Web-Based System:
• (b) Action of Offices:
o Once the Department of Information and
Communications Technology (DICT) o Applications must be processed within
develops an acceptable web-based specified times: up to 3 working days for
business registration system (as required simple transactions and 7 for complex ones,
in Section 26), all transactions must be with specific extensions for certain cases.
conducted through this system. Denials must be formally communicated,
and no application can be returned without
• Mandatory Adoption:
action.
o All government agencies, including local
• (c) Denial of Application:
government units (LGUs), are required to
implement this zero-contact policy to o Any denial must be explained in writing,
streamline processes. citing the name of the person denying and
the reasons.
Sec. 8. Accountability of Heads of Offices and Agencies
• (d) Limitation of Signatories:
• Primary Responsibility:
o Documents require a maximum of three
o The head of each office or agency is
signatures from supervising officers, with
responsible for implementing this Act.
provisions for alternates during absences.
• Public Accountability: Electronic signatures are allowed with
proper security.
o Heads must ensure that services are
fast, efficient, convenient, and reliable, • (e) Electronic Versions of Documents:
being held accountable to the public for
o Agencies must develop electronic versions
the quality of service provided.
of licenses and permits that hold the same
• Permission for Transactions: authority as hard copies.

o All transactions and processes are • (f) Working Schedules:

assumed to have the clearance or
o Offices must adopt schedules that ensure
permission from the highest authority
service to applicants present before closing
within the respective government
time, including during breaks.
office or agency.
• (g) Identification Card:

o Employees interacting with the public must

wear official identification cards during
office hours.

• (h) Public Assistance/Complaints Desk:

o Each agency must establish a public

assistance or complaints desk for support.
Sec. 10. Automatic Approval or Automatic Extension • Barangay Clearances: Barangay clearances must
be processed at the city/municipality level, with
• If a government agency does not approve or
revenues shared with the respective barangays.
disapprove an application for a license,
clearance, permit, certification, or
authorization within the set processing time,
Sec. 12. Streamlined Procedures for FSEC, FSIC, and
the application is automatically deemed
Certification of Fire Incidents
approved, provided all required documents and
fees have been submitted. The • Timelines for Issuance:
acknowledgment receipt and official payment
receipt serve as valid proof of this approval. o FSEC and FSIC: Must be issued within
seven (7) working days.
• For renewals, if an agency fails to act within the
o Certification of Fire Incidents: Should
prescribed time, the existing license or permit
will be automatically extended under the same be issued within twenty (20) working
conditions. days, with a possible one-time
extension of another twenty (20)
• The relevant authorities, in coordination with working days.
agencies like the CSC, DTI, SEC, and DILG, will
establish guidelines for categorizing • FSIC Use for New Permits: An FSIC issued during
applications and define those posing risks to the occupancy permit stage can be used for
public health or safety. new business permit applications.

• FSIC for Permit Renewal:

Sec. 11. Streamlined Procedures o The Bureau of Fire Protection (BFP)

must present the FSIC to the
• Unified Application Form: LGUs must use a city/municipality within three (3)
single business application form for new working days for business permit
applications and renewals, consolidating renewals.
information from various departments (e.g.,
o If the BFP fails to provide the FSIC or
taxes, clearances). This form will be available
online and in hard copy. update within this timeframe, a
temporary valid FSIC will be assumed,
• Business One Stop Shop (BOSS): A BOSS will be allowing for automatic permit renewal.
established in each city/municipality’s Negosyo
• Prohibition on Equipment Sales: BFP officials
Center to streamline the submission and
processing of applications, with a queuing are prohibited from selling or recommending
mechanism for efficient management. specific fire safety equipment. Violations carry
penalties, including imprisonment and fines.
• Automation of Systems: LGUs are required to
automate their business licensing system within • Collocation with BOSS: The BFP will collocate
three years, creating electronic versions of with the Business One Stop Shop (BOSS) to
licenses that can be printed by businesses. The facilitate fee assessment and collection.
DICT will provide necessary software and • Agreements with Local Governments: BFP may
technical assistance. allow cities/municipalities to act as assessors
• Issuance of Local Clearances: Local clearances and collecting agents for fire safety fees.
(e.g., sanitary, environmental) will be issued • Online Mechanism Development: The BFP is
alongside business permits to reduce required to create an online system for
transaction requirements. assessing fees, collecting payments, and sharing
• Permit Validity: Business permits will be valid data related to business permit processing.
for one year, with options for renewal during
the first month or on the anniversary of
issuance.
Sec. 13. Central Business Portal (CBP) Section 15: Interconnectivity Infrastructure
Development
• Purpose: The CBP is established to eliminate red
tape, reduce corruption, promote transparency, Purpose
and facilitate ease of doing business.
• To expedite the processing of licenses,
• Function: It will serve as a central system for clearances, permits, certifications, or
receiving applications and capturing data authorizations by developing a fast and reliable
related to business transactions, including interconnectivity infrastructure.
licenses and permits from local government
Processing Times
units (LGUs). It may link to online systems of
national government agencies (NGAs). • Telecommunication and Broadcast Facilities:
• Regulations: The Department of Information o Barangay: 7 working days
and Communications Technology (DICT), in
consultation with the National Privacy o Local Government Units (LGUs): 7
Commission (NPC) and relevant agencies, will working days
issue rules for the CBP’s operation and the use o National Government Agencies (NGAs):
of electronic signatures. 7 working days
• Interconnectivity Program: The DICT is • Automatic Approval: If the granting authority
mandated to develop an Interconnectivity does not approve or disapprove an application
Infrastructure Program to connect NGAs and within the prescribed time, the application is
LGUs. deemed approved.
• Public Awareness: The DICT will conduct o If local legislative approval is needed, a
campaigns to inform the public about the CBP non-extendable period of 20 working
and its benefits. days is allowed.

• Homeowner Association Clearances:

Sec. 14. Philippine Business Databank (PBD) o Homeowner association officers have
• Establishment: The DICT will establish and 10 working days to refer the application
maintain a PBD within one year of the Act’s to the members.
effectivity. This databank will provide access to o The association has a non-extendable
data on registered businesses for NGAs and period of 30 working days to provide
LGUs. consent or disapproval.
• Functionality: The PBD will help verify the o If disapproved, the granting authority
validity and existence of business entities. NGAs must notify the applicant within the
and LGUs must link their databases to the PBD prescribed period, stating the reasons
or provide regular updates. and possible remedial measures.
• Regulations: The DICT, in consultation with Review of Regulations
relevant agencies, will issue implementing rules
and regulations (IRR) for the PBD’s • Within three months of the IRR approval, the
management within three months of the Act’s Authority, in coordination with the DICT, will
effectivity. review and recommend the repeal of outdated
or unnecessary licenses, clearances, permits,
• Document Requirements: Once a document is certifications, or authorizations required by
submitted to any agency with access to the PBD, NGAs, LGUs, and private entities.
it will not need to be resubmitted to other
agencies with the same access. This applies to
local government departments for business-
related licenses and clearances.
Section 16: Anti-Red Tape Unit in the Civil Service o Technical Assistance: Provide advisory
Commission (CSC) support on national or local legislation
and regulations.
• Establishment: The CSC will maintain an anti-
red tape unit in its central and regional offices. o Public Information System: Establish a
system to disseminate information on
• Functions:
regulations and legal changes.
o Utilize Report Card Survey findings for
o Collaborations: Work with other
human resource systems aimed at
government agencies like the CSC and
efficient government service delivery.
DTI to fulfill its functions.
o Receive, review, hear, and decide
complaints against erring government
employees and officials, and address Section 18: Composition of the Authority
noncompliance with this Act.
• Leadership: The Authority will be headed by a
Director General, appointed by the President,
serving coterminously with the President's
Section 17: Anti-Red Tape Authority
term.
• Creation: The Anti-Red Tape Authority (the
• Benefits: The Director General will receive
Authority) is established, to be organized within
benefits equivalent to a Secretary's rank.
six months of the Act's effectivity, and will be
attached to the Office of the President. • Deputy Directors: There will be three Deputy
Directors General (legal, operations,
• Powers and Functions:
administration and finance), also appointed by
o Policy Implementation: Oversee the President, who must be career officials.
national policies on anti-red tape and
• Operational Oversight: The Director General
ease of doing business.
will oversee daily operations and determine the
o Monitoring: Evaluate compliance of Authority's organizational structure, including
covered agencies and issue warnings to regional offices and staffing, in consultation
noncompliant employees or officials. with the CSC, DTI, and DBM. In the absence of
regional offices, the DTI's personnel may be
o Investigations: Initiate investigations, deputized.
refer complaints to appropriate
agencies, or file cases for violations of
the Act.

o Complainant Assistance: Help

individuals file cases with relevant
authorities.

o Policy Recommendations: Suggest

improvements for regulatory
management and business processes.

o Regulatory Review: Review major

regulations and their compliance with
proportionality rules.

o Training Programs: Conduct training for

NGAs and LGUs on regulatory
management practices.

o Manual Preparation: Create regulatory

management manuals for agencies and
local governments.
Section 19: Ease of Doing Business and Anti-Red Tape o Performance Review: Periodically assess the
Advisory Council country’s competitiveness and address
challenges.
Creation of the Council
o Technical Assistance: Provide advisory opinions
• Name: Ease of Doing Business and Anti-Red
on proposed legislation and regulations.
Tape Advisory Council (the Council).
o Transparency Recommendations: Suggest
• Composition:
measures to promote transparency and
o Chairperson: Secretary of the efficiency in business practices.
Department of Trade and Industry
o Additional Functions: Carry out other functions
(DTI).
as directed by the President for the
o Vice-Chairperson: Director General of implementation of this Act.
the Anti-Red Tape Authority.
Secretariat Role
o Members: Secretaries of the
• Support: The Anti-Red Tape Authority will serve
Department of Information and
as the Secretariat for the Council, led by its
Communications Technology (DICT),
Deputy Director General for operations.
Department of the Interior and Local
Government (DILG), and Department Reorganization of Existing Council
of Finance (DOF).
• The National Competitiveness Council (NCC)
o Private Sector Representatives: Two will be renamed and reorganized as the Council.
representatives appointed by the Relevant provisions from previous executive
President for three-year terms, eligible orders are repealed.
for one reappointment, nominated by
reputable business groups or
associations. Secretaries may designate
Undersecretary-level representatives.

Functions of the Council

• Policy and Advisory Role: Acts as the policy and

advisory body to the Anti-Red Tape Authority.

• Key Responsibilities:

o National Policy: Plan, draft, and propose

national policies on ease of doing business and
anti-red tape measures.

o Regulatory Improvement: Recommend policies

and processes to enhance the productivity and
efficiency of permitting and licensing agencies.

o Service Delivery: Design systems to improve

government service delivery and business
operations.

o Task Forces: Authorize the creation of working

groups or task forces for implementation
support.

o Legislation Proposals: Propose amendments to

Philippine laws related to anti-red tape and
ease of doing business.
Section 20: Report Card Survey Section 22: Penalties and Liabilities

Purpose of the Report Card Survey Penalties for violations are as follows:

• Initiation: Conducted by the Anti-Red Tape • First Offense: Administrative suspension for six
Authority, in collaboration with the Civil Service months. For fixing or collusion, harsher
Commission (CSC) and the Philippine Statistics penalties apply.
Authority (PSA).
• Second Offense: Dismissal from service,
• Objective: To gather feedback on the permanent disqualification from public office,
implementation of the Act and assess the forfeiture of retirement benefits, and potential
performance of government offices and agencies imprisonment of 1 to 6 years with substantial
providing services. fines.

Key Elements of the Survey Criminal liability applies for bribery or extortion, with
additional provisions from the Revised Penal Code and
• Performance Assessment: Evaluates how well
other laws.
agencies adhere to the provisions of the Act.
Section 23: Civil and Criminal Liability, Not Barred
• Hidden Costs: Collects information on hidden costs
faced by applicants, such as bribes and payments to This section states that finding an individual
fixers. administratively liable under this Act does not prevent
the pursuit of criminal, civil, or related charges based on
• Recognition and Incentives: Survey results will
the same act or omission. In other words, administrative
inform awards and recognition for agencies that
findings can coexist with other legal actions.
excel in service delivery.
Section 24: Administrative Jurisdiction
Feedback Mechanism
The jurisdiction for handling violations of this Act falls
• Implementation: Each agency must establish a
under either the Civil Service Commission (CSC) or the
feedback mechanism to collect and incorporate
Office of the Ombudsman, depending on applicable
public input.
laws and issuances. This establishes clear authority for
• Annual Reporting: Results from the feedback administrative enforcement.
mechanism and survey will be included in the
Section 25: Immunity and Discharge of Co-
agency's annual report.
Respondent/Accused as Witness
Section 21: Violations and Persons Liable
This section provides immunity to public officials or
This section outlines specific violations that can lead to employees who, charged under this Act, voluntarily
liability, including: provide information or testify in investigations.
Conditions for this immunity include:
• Refusal to Accept Applications: Not accepting
complete applications without just cause. • The necessity of the testimony for prosecution.
• Imposing Additional Requirements or Costs: Adding • Lack of other direct evidence available.
requirements or fees not listed in the Citizen’s
Charter. • Substantial corroboration of the testimony.
• Failure to Notify: Not providing written disapproval • No prior convictions for morally reprehensible
notices to applicants. crimes.
• Processing Delays: Not rendering services within • The individual not being the most guilty party.
the required timeframes.
If granted immunity, the testimony becomes part of the
• Neglecting Applicants: Ignoring applicants present investigation records. If a request for discharge as a
during official hours.
witness is denied, the individual's statements cannot be
• Receipt Issuance: Failing to issue official receipts. used as evidence in court.

• Collusion with Fixers: Engaging in or enabling fixing

for personal gain.
Sec. 26: Transition to Software-Enabled Transactions

• Timeline: 3 years to automate business

transactions.

• Goals: Develop web-based, technology-neutral

platforms.

• Support for LGUs: Provide equipment and

training for lower-class municipalities.

Sec. 27: Transitory Provisions

• (a) Organizational structure of the Authority

determined by the Director General with DTI.

• (b) Gather ongoing regulatory programs;

agencies must report on projects.

• (c) Conduct an information campaign about the

Act amending the Anti-Red Tape Act.

Sec. 28: Congressional Oversight Committee

• Formation: COC-EODB with members from

both Senate and House.

• Purpose: Monitor implementation; will dissolve

after 5 years.

Sec. 29: Appropriations

• Funding Source: Current appropriations + ₱300

million from the Contingency Fund.

• Future Funding: Included in annual General

Appropriations Act.

Sec. 30: Implementing Rules and Regulations

• Responsibility: Authority to create rules with

several agencies.

• Deadline: 90 working days post-effectivity.

Sec. 31: Separability Clause

• Validity: Remaining provisions remain valid if

any are declared invalid.

Sec. 32: Repealing Clause

• Amendment: Conflicting laws or issuances are

deemed repealed.

Sec. 33: Effectivity

• Start Date: 15 days after publication in the

Official Gazette or two national newspapers.