Bizmen slam hike in city’s proposed real property tax-A A +A
Thursday, July 3, 2014
THE business sector in Iloilo City is opposing the proposed new schedule of zonal values of real properties in the city which will take effect on January 1, 2015.
A position paper was submitted by the businessmen comprising eight business organizations in the city, saying the timing of increases will have serious repercussions.
“We want the city to develop but not at the expense of our small business owners. We have to sustain the city’s conducive business climate where small and big businesses can both flourish,” the position paper said.
The Iloilo businessmen claimed the proposed new schedule of zonal values of real properties has a negative impact on the local investment climate, Iloilo’s accelerated growth, retention and sustainability of business enterprises.
The City Council committee on ways and means chaired by city councilor Plaridel Nava conducted a public hearing on Thursday, July 3, to hear the sentiments of the local business sector including other stakeholders.
Increasing the real property taxes at this time when investors are starting to come in the city will certainly dampen the construction boom because the increase will no longer make the lease cost effective to potential renters and targets on investment recovery will not be achieved, the Iloilo businessmen said.
Those property owners with existing tenants will have to pass on the additional charge and will therefore increase rental rates, they added.
The paper was signed by Juan Jose Jamora III, chairman of the Iloilo Business Club Inc.; Donna Rose Ratilla, president of the Philippine Chamber of Commerce and Industry of Iloilo; Fanny Uy, president of the Iloilo Multi-Sectoral Business Organization Inc.; Valerie Maravilla, president of the Ilonggo Producers Association; Ramon Cua Locsin, president of the Federation of Filipino Chamber of Commerce and Industry of Panay Inc.; Felipe Uygongco, president of Filipino Chinese Chamber of Commerce Inc.; Francis Chung, president of Philippine Retailers Association of Iloilo; and Herminio Maravilla, president of CREBA.
On the other hand, city assessor Nelson Parreno said the assessment of real properties such as land, buildings and machineries, and the schedule of market values is mandated every three years.
Parreno said the scheduled implementation in 2009 was not implemented due to the onslaughts of supertyphoon Frank that devastated the city.
The increases was a flat rate schedule at 50 percent increases in 2003 but his office started to revise the staggered implementation at 50 percent in 2007, 60 percent in 2006, and 60 percent in 2008.
Parreno said the average RPT increases are 91 percent in the city proper, 86.2 percent in La Paz, 92.4 percent in Jaro, 113.6 percent in Arevalo, 88.4 percent in Mandurriao, and 60 percent in Molo district depending on land development of the area.