THE proposed revision of the zonal valuation for real properties in Davao City is expected to adversely affect the booming property development sector in the city, an official said.
Malou Monteverde, president of the Philippine Integrated Real Estate Service, said during the City Council's regular session Tuesday that the proposal will have a domino effect on the city's already thriving economy.
"There are a lot of development projects approved here by the city government. Now, we already have the proposed feasibility study on these development projects and if this massive increase in the zonal valuation will be implemented, all of property development projects in the city will crash, especially if it will be applied the soonest," Monteverde said.
For instance, she said taxes for agricultural land, which is presently pegged at P50 per square meter, will soar to P500 to P1,000 in the revised zonal value proposed by the Bureau of Internal Revenue-Davao,
BIR Davao Director Glen Geraldino said zonal valuation of real properties in the city will be based on actual selling price.
"I do not think that this will affect the real property development in Davao because actually our basis for the zonal valuation is actually based on the actual selling price on the daily transactions made by our taxpayers in Davao," Geraldino said.
Councilor Diosdado Mahipus said measures should be taken by BIR to consult the City Council as to how they came up with the proposal and appealed to appraise the proposal.
Councilor Danilo Dayanghirang, chair of the committee on finance, will conduct a committee hearing on Monday to further discuss the matter. (ASP)