Businesses back reforms in real property valuation

MANILA, Philippines — Business groups and non-government organizations are calling for the immediate passage of the third package of the Comprehensive Tax Reform Program which seeks to improve the country’s real property valuation and assessment system.

In a joint statement, the American Chamber of Commerce of the Philippines Inc., Australian-New Zealand Chamber of Commerce Philippines, Canadian Chamber of Commerce of the Philippines, European Chamber of Commerce of the Philippines, Japanese Chamber of Commerce and Industry of the Philippines Inc., Korean Chamber of Commerce Philippines, Foundation for Economic Freedom, Philippine Chamber of Commerce and Industry, Philippine Institute of Environmental Planners, Rural Bankers Association of the Philippines, and Social Watch Philippines said they strongly support the immediate approval of the  Real Property Valuation and Assessment Reform Act.

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“We therefore call on the Senate for the immediate passage of this pending measure,” the groups said.

The House of Representatives’ version was approved on third reading in November 2019.

“We collectively agree with the intent of package 3 in promoting the development of a just, equitable, and efficient real property valuation system through the introduction of the following reforms: adoption of a uniform valuation standard based on international valuation practices; establishment of a single valuation base for taxation and for other purposes; establishment of a comprehensive database to support real property valuation functions; centralization of the approval of the Schedule of Market Values (SMVs); and strengthening of the valuation functions of the Bureau of Local Government Finance,” the groups said.

The groups said having a uniform valuation standard and a single valuation base would correct the multiple and overlapping real property valuation seen at present that has resulted in confusion, huge transaction costs for the public, and foregone revenues to the government.

“Conflicting land values causes delay and conflicts in right-of-way compensation for public infrastructure projects, make doing business for investors difficult and risky, and stunt the growth of an otherwise vibrant land market,” they said.

In addition, the groups said a central database of land transactions would make data available for better SMV setting.

“Regularly updated SMVs will ensure that real property goes to its highest and best use,” they said.

Updated SMVs are also seen to support land use planning and zoning of local government units (LGUs).

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The groups also said package 3 would widen the tax base for property taxes and allow additional revenues to be generated for both the national government and LGUs even without new or additional taxes being imposed.

“The proposed reforms under package 3 will enhance transparency and credibility in the valuation standards in the country, and confidence in the land market. Ultimately, the real property valuation reform will benefit all,” they said.

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Article and Photo originally posted by Philippine Star last May 16, 2021 12:00am and written by Louella Desiderio.

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