Reform of extensive real estate valuation | Philstar.com


Elijah Felice Rosales – The Filipino Star

September 10, 2021 | 00h00

MANILA, Philippines – The Department of Finance (DOF) will pursue real estate appraisal reform in Congress with the goal of encouraging builders and developers to invest in the Philippines.

At the launch of the Philippines Proptech Consortium yesterday, Finance Secretary Carlos Dominguez said the DOF would seek to enact real estate valuation reform before President Duterte’s term ends next year.

“During the last months of the Duterte administration, we will be pushing for the passage of the Real Estate Valuation and Valuation Reform Act,” Dominguez said.

Real Estate Valuation Reform, the third package of the Comprehensive Tax Reform Program (CTRP), will adopt valuation standards observed by the international community. It also sets up a single tax base for real estate through the use of reference values ​​to improve collection.

As part of this measure, the Bureau of Local Government Finance (BLGF) will be responsible for developing uniform standards to guide appraisers and appraisers in the valuation of properties. However, local governments retain the power to set, adjust and regulate tax rates.

The House of Representatives passed its version of the reform in 2019, but the Senate has yet to act on the measure.

Dominguez said that the approval of the third CTRP package, coupled with the use of digital tools, “will boost investor confidence in the land and real estate markets“.

Likewise, Dominguez urged home builders and real estate developers to take advantage of the tax benefits provided by the Law on Business Recovery and Tax Incentives for Businesses.

In August, the Tax Incentives Review Board, chaired by the chief financial officer, approved the granting of a four-year income tax exemption for mass housing of 1.4 billion pesos in Iloilo. The project will build more than 3,000 low-cost units to fill one percent of the housing backlog in the Western Visayas.

“As our economy recovers after a period of great difficulty, we will expect an even more vibrant housing market with these reforms in place. The intensive use of new digital technologies will add even more vitality to the market, ”said Dominguez.

The government plans to increase its tax collection by more than 11% on average from 2021 to 2024 to reach 3.833 billion pesos, and property taxes collected by local governments will contribute to this expected revenue growth.

Based on BLGF records, local governments expanded their property tax collection by nearly 24 percent to 70.54 billion pesos last year, from 57.03 billion pesos in 2019.


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