THE Senate Committee on Ways and Means opened on Thursday deliberations on the third key plank of the multi-package tax reform program, this time focused on updating the real property valuation system to shore up revenue for both the national and local governments.
Senator Pia S. Cayetano, panel chairman, called the public hearing on Real Property Valuation and Assessment Reform in a bid to get stakeholders from both the government and the private sector, to review the issues bugging the system.
The updated system comprises Package 3 of the Duterte administration’s Comprehensive Tax Reform Program.
Summarizing the issues, she said, “this proposed reform package, which is part of the Comprehensive Tax Reform Package, is meant to address” the problems on real property valuation and assessment.
She then listed them as: rampant outdated valuations used for government purposes, especially for national and local taxation; cost overruns and foregone revenues due to local valuations used; multiple overlapping valuation of different government agencies; and absence of a comprehensive real property electronic database;
Package 3 proposes, among others, to adopt internationally accepted real property valuation standards and rationalize the process of valuation, establish a single valuation base for taxation, and for the LGU to continue to set, adjust and regulate tax rates and assessment levels.
“So, I wanted to emphasize this last point because in early 2019, when the entire package was presented—the initial concerns I received, because we did hear this in totality in passing—the early reactions were on the LGUs’ sense of control over this.”
“So, I am pointing that out, that based on Package 3, the LGU shall continue to set, adjust, and regulate tax rates and assessment levels.
Cayetano included in the panel’s agenda the following bills: Senate Bill 246 filed by Sen. Panfilo Lacson; Senate Bill 519 by Sen. Miguel Zubiri; Senate Bill 894 by Sen. Ramon Revilla Jr., and House Bill 4664.
“So, basically, obviously, like any tax revenue measure, there are issues surrounding them, there are people who support and there are those who don’t,” said Cayetano.
“So, we will dive into the issues surrounding this topic, but basically, we want to start with hearing from the government on the administration side on why there is a need for this, why this is a priority and why we must take time to work on this in the remaining months that we have.”
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