House passes third package of Comprehensive Tax Reform Program

November 25, 2019

Voting 224 against 7 and one abstention, the House of Representatives on Monday approved on third and final reading third package of the Comprehensive Tax Reform Program (CTRP), which institute reforms in real property valuation.

Lawmakers approved House Bill No. 4664 or Real Property Valuation Reform Bill.

Albay Rep. Joey Salceda, House Committee on Ways and Means chairman,  principal author of the bill, said the proposal seeks to reorganize the Bureau of Local Government Finance (BLGF).

The bill seeks an allocation worth P58 million for the establishment of a Real Property Valuation Service within the BLGF for 2020.

Salceda said pursuant to the Local Government Code of 1991, the bill seeks to grant each LGU the power to create its own sources of revenue and to levy taxes, fees, and charges.

Salceda said real property valuation reform bill is pro-local government, saying "we expect P30.2 billion estimated revenue for the first year of the implementation for local government units."

Salceda said the Package 3 will also address the issues on the right of way.

"Without valuation reform, right of way acquisition could delay the delivery of much of these projects. With every year of delay, the opportunity cost to the economy increases," he said.

"This is beneficial to the national government because almost P150 billion in projects are delayed every year because of right-of-way acquisitions," he said.

Salceda said the government would also save P25.2 billion per year due to elimination of costs for notice, conduct of hearing, and publication of zonal values.

The bill aims to harmonize the real property valuation for taxation purposes, which releases the BIR from promulgating the schedule of zonal values.

The measure also ensures transparency in real property transactions to protect the public and develop confidence in the work of appraisers and assessors. DMS