DAVAO City Councilor Danilo Dayanghirang raised concerns over the proposed Schedule of Market Values (SMV) pursuant to Republic Act No. 12001, citing that this would become a burden to the public.
Dayanghirang, who chairs the Committee on Finance, Ways and Means, and Appropriations, said that the concerns of the affected sectors cannot be ignored considering that the increase in market valuation may range from 78 percent to 100 percent, and some even up to 600 percent to 1,000 percent depending on reclassification and property use adjustments.
“Residential areas may experience increases that ordinary homeowners may no longer sustainably afford. Commercial properties may face double or even higher increases in real property taxes,” he said during his privilege speech on Tuesday, May 26, 2026, at the Sangguniang Panlungsod.
“Tax declarations in certain areas may even exceed actual market realities. If not calibrated properly, this may create a ripple effect across the economy,” he continued.
The councilor said that higher property valuations may increase acquisition costs, capital gains taxes, documentary stamp taxes, estate taxes, transfer fees, and other related charges imposed by the national government.
Dayanghirang said that the increase may discourage investments and would eventually slow down housing development in the city, affect small entrepreneurs, and impact the lives of the public.
He said that he acknowledges the importance of reform and proper valuation of real properties, as well as the intention of the national government to establish an updated valuation system and the efforts of the city assessor’s office. However, this would burden the public.
Dayanghirang said that during his consultations and forums with the Chamber of Real Estate and Builders’ Associations, Inc. (Creba), the Davao City Chamber of Commerce and Industry, Inc. (DCCCII), developers, business leaders, and representatives from other sectors, they voiced concerns over the possible effects of the proposed Schedule of Market Values.
He said the business sector expressed concern over the “abrupt and excessive” increase, which could affect the real estate market, investor confidence, and the long-term competitiveness of the city. He added that developers who provide housing and shelter for the people warned that the tax burdens could be passed on to ordinary citizens.
Dayanghirang also said that behind every tax declaration is a family, a lifetime of sacrifice, and a small business that is struggling to survive, emphasizing that the increase is not just numbers on paper, but about sustainability, fairness, and compassion.
He then said that the city government should proceed with caution and that it should balance fiscal needs with the economic realities faced by the public, citing recommendations raised during the consultations, which proposed the phased implementation of the increase, reviewing assessment levels and tax rates so that they would not burden taxpayers, and adopting a reasonable cap and gradual adjustment.
Other recommendations include benchmarking best practices from highly urbanized cities, conducting a comprehensive tax impact analysis, and holding further consultations with the affected sectors.
He also proposed inviting representatives from the Bureau of Local Government Finance during the next regular session to provide an update on the status of the proposed 2026 Schedule of Market Values. RGP
