THE Department of Human Settlements and Urban Development (DHSUD) is studying a proposal with the Department of Trade and Industry–Board of Investments to classify economic housing as corporate income tax (CIT)-exempt mass housing under Batas Pambansa 220, in a move aimed at accelerating affordable home development and providing clearer incentives to private developers.
In a statement, Housing Secretary Jose Ramon Aliling said the proposed review seeks to place economic housing projects under a more predictable, rules-based tax incentive framework, aligning them more closely with socialized housing. The initiative supports the government’s push to expand access to affordable housing while easing regulatory bottlenecks affecting priority sectors, particularly working households, Aliling said.
“Hangad natin ang isang malinaw at maayos na sistema para sa Economic Housing. Kapag malinaw ang mga patakaran at pantay ang pagpapatupad, mas nagiging mabilis ang pagtugon sa pangangailangan sa pabahay at mas pinapalakas ang tiwala ng pribadong sektor,” he said.
(We are aiming for a clear and orderly system for economic housing. When the rules are clear and implementation is fair, the response to housing needs becomes faster and the confidence of the private sector is strengthened.)
The policy review comes after the Department of Finance–Bureau of Internal Revenue issued Revenue Memorandum Order 048-2025, which introduced a more uniform process for tax exemption covering both socialized and economic housing and streamlined compliance procedures for developers. Earlier this year, the DHSUD and the Department of Economy, Planning, and Development issued Joint Memorandum Circular 2025-001, adjusting the price ceiling for socialized housing projects under the government’s flagship Expanded Pambansang Pabahay para sa Pilipino Program.
“Lahat po ito ay para ma-sustain ang vibrancy sa housing sector at pabilisin at pahusayin ang mga polisiya para sa kapakinabangan ng ating mga stakeholders, lalo na ang mga home buyers,” Aliling said.
(All of these are meant to sustain the vibrancy of the housing sector and to further speed up, streamline, and improve policies for the benefit of our stakeholders, especially home buyers.)
To advance discussions with the DTI-BOI, Aliling recommended the creation of a technical working group to conduct evaluations and draft policy recommendations for inter-agency review.
He said the initiative could help speed up housing development, improve coordination across government, and create a more transparent and predictable incentive framework for projects compliant with BP 220.
“Hindi lamang ito usapin ng buwis. Ito ay tungkol sa malinaw na direksyon, tiwala sa pamahalaan, at sama-samang pagkilos upang matugunan ang pangangailangan sa abot-kayang pabahay,” Aliling said.
(This is not just a tax issue. It is about clear direction, trust in government, and collective action to address the need for affordable housing.) / KOC