ILOILO CITY โ In response to the clamor of the business sector, the Iloilo City government reduced real property tax (RPT) here by 40 percent for fiscal years 2024 and 2025.
โThis is in view of the many inquiries we are getting on the increase in RPT,โ said Mayor Jerry Treรฑas here.
THE Iloilo City Hall. (Tara Yap)
Local businesses were shocked and extremely concerned over the negative impact of the huge increase in RPT for 2024 during the holiday season.
Martin Pison of the Riverside Group of Companies said the โ1,000 percent increase is virtually confiscatory and oppressiveโ and could close down businesses that rent properties.
Pison said tax levied for its Riverside Boardwalk Properties Inc. amounted to P584,283 for 2023 but the assessed value for 2024 was P7.56 million.
For Riverside Holdings Inc., the real estate tax was valued at P377,119 in 2023 but the assessed value jumped to P3.30 million.
Due to these concerns, the Treรฑas administration will only charge 60 percent for RPT based on the new market value.
The Iloilo City Council passed an ordinance approving the new RPT rate last June as the last valuation for RPT was conducted in 2006.
But with the 40 percent reduction, the Iloilo City Council has to amend the ordinance on the RPT.
Treรฑas reiterated the 2018 Supreme Court decision known as Mandanas-Garcia Ruling which gives local government units (LGUs) more financial resources and not rely merely on national taxes derived from national agencies such as the Bureau of Internal Revenue (BIR).
โThe revenue raised from taxation is vital for our operations especially now that there are devolved functions to the local government due to the Mandanas-Garcia ruling and to finance our various programs and projects,โ said Treรฑas.
Source: https://mb.com.ph/2024/1/7/iloilo-city-reduces-real-property-tax-for-2024-and-2025
