THE Foundation for Economic Freedom Inc. (FEF) and other groups expressed its support for the immediate passage of the Real Property Valuation and Assessment Reform Act or Package 3 of the Comprehensive Tax Reform Program.
The FEF said Package 3 will help widen the tax base for property taxes and bring in additional revenues for both the national and local government units (LGUs). The advocacy group led by former Finance Secretary Roberto F. de Ocampo said the reforms will also 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. We therefore call on the Senate for the immediate passage of this pending measure,” the FEF said in a statement, which was also signed by several chambers of commerce and institutions.
The FEF said they agreed with the intent of Package 3 in promoting the development of a just, equitable and efficient real property valuation system through reforms such as the adoption of a uniform valuation standard based on international valuation practices and establishment of a single valuation base for taxation and for other purposes.
They also supported the 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 (BLGF).
The FEF noted that adopting a uniform valuation standard and a single valuation base will correct the current situation where there is multiple and overlapping real property valuation. This has brought confusion, led to significant transaction costs and foregone revenues.
“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,” the FEF said.
Further, the FEF backed the establishment of a central database of land transactions that will make data available for better SMV setting. This would ensure that real property goes to its highest and best use and support the land use planning as well as zoning of local governments.
The statement was also signed by the American Chamber of Commerce of the Philippines Inc.; Australia-New Zealand Chamber of Commerce Philippines; Canadian Chamber of Commerce of the Philippines Inc.; European Chamber of Commerce of the Philippines; Japanese Chamber of Commerce and Industry of the Philippines Inc.; and, the Korean Chamber of Commerce Philippines.
Other signatories are the Institute of Philippine Real Estate Appraisers; Philippine Chamber of Commerce and Industry; Philippine Institute of Environmental Planners; Rural Bankers Association of the Philippines; and, Social Watch Philippines.