CCCI ‘bullish’ on new property tax law

CCCI ‘bullish’ on new property tax law
SunStar Business

THE Cebu Chamber of Commerce and Industry (CCCI) is calling for an “active dialogue” with the Cebu City Government to ensure fair implementation of the newly signed Real Property Valuation and Assessment Reform Act (RPVARA).

CCCI president Jay Yuvallos, in a statement released on Saturday, June 22, 2024, emphasized the crucial role of local government units (LGUs) in implementing RPVARA. The new law aims to modernize the country’s property valuation system, aligning it with international and Association of Southeast Asian Nations standards.

“We encourage an active dialogue among the LGU, the business community and Cebuano constituents to strike a balanced and fair implementation of RPVARA,” Yuvallos stated, noting that the implementing rules and regulations are yet to be released.

Yuvallos highlighted existing issues in Cebu City’s property valuation system, including infrequent updates and inconsistencies leading to disparities and multiple assessments. These problems, he said, hinder efforts to improve the ease of doing business and potentially result in lost tax revenue for the LGU.

President Ferdinand “Bongbong” Marcos Jr. signed RPVARA into law on Thursday, June 20. The Act is part of the administration’s Common Legislative Agenda and aims to streamline the country’s tax collection system.

RPVARA intends to address outdated valuations and unify the varied systems used by different government agencies, including the Bureau of Internal Revenue, LGU Assessor’s offices, the Department of Environment and Natural Resources and government financial institutions.

The CCCI also supports the creation of a real property information system to provide an up-to-date database of property valuations. “This is a remarkable opportunity for the LGU to encourage compliance, promote development, and boost wealth creation in Cebu,” Yuvallos added.

Property advisory firm Colliers Philippines believes RPVARA will positively impact the real estate market, despite likely increases in acquisition costs and property taxes. The firm expects the law to provide more transparency and address opacity in the Philippine property market.

“The law will likely elevate overall market confidence in the real estate market, which should encourage long-term investments and spur sustainable and inclusive economic growth,” Colliers stated.

As Cebu City prepares to implement this significant reform, the business community eagerly awaits the opportunity to engage in discussions with local officials to ensure a fair and beneficial implementation for all stakeholders. / KOC

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