Marcos backs private sector’s call to suspend real property tax hike

MANILA, Philippines — Malacañang on Wednesday said President Ferdinand Marcos Jr. is inclined to support a proposal to suspend real property tax hikes amid private-sector concerns that higher valuations could increase property owners’ financial burden.

Palace Press Officer Claire Castro said the Department of Finance (DOF) had already begun taking action on the issue following Marcos’ meeting with members of the Private Sector Advisory Council (PSAC) Infrastructure Sector Group – Real Estate in Malacañang on Tuesday.

The private companies sought the suspension of increases in real property values to prevent higher taxes from being passed on to property owners, Castro said.

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Castro did not provide details on the specific measures being prepared by the DOF or the timeline for their implementation.

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READ: Congress asked to put tax valuation law on hold

During the PSAC meeting, government officials and private-sector representatives discussed ways to make housing more affordable, improve property valuation, and boost investment and growth in the real estate sector.

Real property taxation was specifically discussed, including the potential effects of increasing, lowering, or maintaining property values, Castro said.

During the fourth full meeting of the Legislative-Executive Development Advisory Council (Ledac) in Malacañang in August, Marcos asked Senate and House leaders to suspend the implementation of a law reforming real property valuation to ease the financial burden on businesses and private property owners.

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The administration and Congress agreed to review the implementation of Republic Act No. 12001, or the Real Property Valuation and Assessment Reform Act, a landmark law that Marcos had been pushing since he was a senator.

READ: Halting modern property valuation

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Enacted in June 2024, RA 12001 establishes a uniform system for appraising real property based on international standards. It also adopts prevailing market value as the single basis for valuing real property for tax assessment.

In response, both House and Senate lawmakers filed their respective bills amending several provisions of RA 12001, including suspending the adoption of new or updated schedules of market values (SMVs) and general property assessments.

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The bills also propose extending the period for taxpayers to avail themselves of the real property tax amnesty before the updated SMVs take effect. /mcm