With the implementation of Tax Reform for Acceleration and Inclusion (Train) law, Pag-Ibig executive officer assures fund members of the government's tax exemption processes.
“On the net income side, we are lucky that the congress maintained our tax exemption status,” Pag-Ibig chief executive officer Acmad Rizaldy P. Moti said on Thursday in a media forum at The Pinnacle Hotel and Suites, Davao City.
Moti said it is a big help in maintaining the vision of Pag-Ibig in providing affordable interest rates for Filipino people in having an easier access for personal homes.
“We are also mandated by the Philippine government in initiating a more humane vision through our projects,” Moti said.
He added there was a movement in requiring Pag-Ibig to pay the corporate income tax.
“The question now goes, why Pag-Ibig fund? Is it because we are doing well? Then if that’s the case we told our friends in congress, it is definitely unfair to our members and the owners of the fund,” he said.
He added the growth of the fund does not come from the national government’s budget, but from the commitment of the fund members in paying loyally to Pag-Ibig.
Moti also said the impact of the tax reforms may affect the probability of housing prices to increase.
“But as far as our Pag-Ibig fund and our lending policies are concerned there is no plan from the Pag-Ibig fund to increase interest rates,” Moti said.
The increase on interest rates will only happen if Pag-Ibig starts borrowing from the market, and if fund members will also start not to pay their loans. GAD