This paper is presented at the Third National Convention on Statistics on December 13-14, 1982. The 1979 Diary Family income and Expenditure Survey (DFIES) has utilized the diary method of data collection to minimize, if not eliminate, errors and biases arising from the traditional recall-record method of soliciting information. Jointly conducted by the National Tax Research Center and National Census and Statistics Office, DFIES aims to provide reliable quantitative information regarding personal/additional exemptions and household income/expenditure patterns. This article argues for the utilization of DFIES in the Philippines. Areas for improvement of the system are also cited.