The business groups urged the Senate to immediately pass the Real Estate Valuation and Valuation Reform Act, Package 3 of the Duterte administration’s Comprehensive Tax Reform Program (CTRP).
“We declare our strong support for the immediate passage of the Real Estate Valuation and Valuation Reform Act,” the group said in a statement.
According to the 11 business groups, they collectively agree with the intention of Package 3 to promote the development of a fair, equitable and efficient property valuation system through the introduction of certain reforms.
These reforms include the adoption of a uniform valuation standard based on international valuation practices; establishing a single valuation basis for taxation and other purposes; creation of a comprehensive database to support property valuation
functions; centralization of the approval of the Table of Market Values ââ(SMV); and
strengthening of the evaluation functions of the local government finance office.
The businessmen said that adopting a uniform valuation standard and establishing a single valuation basis would correct the current situation of multiple and overlapping real estate valuations, which has sown the seeds of the confusion and resulted in huge transaction costs for the public and lost revenue for the government.
They noted that conflicting land values ââcause delays and conflicts in compensating rights of way for public infrastructure projects, make doing business for investors difficult and risky, and retarding the growth of an otherwise vibrant land market.
Also, the establishment of a central database of land transactions will make the data available for a better configuration of VMS. Regularly updated VMS will ensure that real estate is used optimally and optimally. It will also support the land use planning and zoning of local government units.
Without the imposition of new or additional taxes, Package 3 will broaden the tax base for property taxes and bring additional income for national and local government units.
“The reforms proposed under Package 3 will improve the transparency and credibility of valuation standards in the country, as well as confidence in the land market,” they said, adding that ultimately the reform of real estate appraisal would benefit everyone.
“We therefore ask the Senate for the immediate adoption of this pending measure,” the business groups concluded.
The petition was signed by 11 business groups. They are the American Chamber of Commerce of the Philippines, Inc. Australia-New Zealand Chamber of Commerce of the Philippines, Canadian Chamber of Commerce of the Philippines, Inc., European Chamber of Commerce of the Philippines,
Philippine Japanese Chamber of Commerce and Industry, Inc., Philippine Korean Chamber of Commerce, Economic Freedom Foundation, Philippine Chamber of Commerce and Industry, and Philippine Institute of Environmental Planners Philippines Rural Bankers Association.
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