Cities that fully automated their business permitting systems recorded significantly stronger growth in local business tax collections than those that had not completed the shift, according to a Philippine Institute for Development Studies (PIDS) study. The study, “Relevance of e-Governance in Revenue Generation among Philippine Cities,” found that fully automated Business Permits and Licensing Systems (BPLS) were associated with an 18.16-percentage-point increase in local business tax revenue growth. Cities with fully automated systems also had more active business establishments, indicating that easier permitting and compliance processes may encourage business formation and expansion. Under digital permitting systems, businesses can apply for permits online, pay through banks or e-wallets, receive electronic official receipts, and, in some cities, obtain permits electronically or through courier delivery. The researchers also found that stronger internet capability significantly increased the likelihood that a city would operate a fully automated BPLS.