Metro Manila (CNN Philippines, November 19)— The House of Representatives approved on second reading Tuesday the third tranche of the administration’s tax reform package, which seeks to reform the real property valuation system in the Philippines.
House Bill No. 4664 or the Real Property Valuation and Assessment Reform Act aims to establish a single valuation base that will be used for the assessment of real property-related taxes in the country. This shall be done through adopting a Schedule of Market Values (SMV).
The measure seeks to update the values used as benchmark for lease, rental, acquisition, and right of way claims.
It will also cover the creation of a comprehensive and updated electronic database for all real property transactions in the country.
The bill also aims to shift the approval of the SMVs from the local council to the Finance Department’s Bureau of Local Government Finance.
House Ways and Means Chairman Rep. Joey Salceda earlier said the third tranche of tax reform package will yield over ₱30 billion in revenues for local government units in the first year of its implementation.
The lower chamber in September approved the second tranche of the government’s tax reform package, which would cut corporate taxes and update the current fiscal incentives program.
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CNN Philippines Correspondent Xianne Arcangel contributed to this report.
