AN official of the Bureau of Internal Revenue (BIR) yesterday said the agency is increasing the zonal valuation of lands in Cebu, which were last set 12 years ago, especially with the implementation of the Tax Reform for Acceleration and Inclusion (Train) law.
BIR 13 Director Aynie Mandajoyon-Dizon said that in Talisay City, for example, the average increase may be 300 percent as it has been 20 years since land values there were last revised. “Talisay City is considered an agricultural area at P10 per square meter. Now, it has buildings that are commercial, industrial or institutional,” Dizon said. Other areas will face varying rates of increase.
She said the revised valuations will help the agency compensate for the lost revenue under the Train law or Republic Act 10963.
“Personal income tax has tremendously decreased in terms of rates and the exemption is now P250,000. We are losing a lot of revenues from this. So, we have to find strategies and means to counteract the effect,” Dizon said.The increase in zonal values would help them collect more in one-time transactions like capital gains tax and documentary stamps.
“The higher the values of the properties, the bigger the tax, especially that there is a real estate boom in the entire Province of Cebu,” Dizon said. (EOB)