The Management Association of the Philippines supports reforms to the country’s real property valuation as proposed in bills introduced in the House of Representatives and Senate as Train Package 3 of the Comprehensive Tax Reform Program of the Duterte Administration.
The reforms seek to institute a central valuation system for properties utilizing market values as the basis to establish a single valuation base.
Under the system, a schedule of market values will be periodically set, updated and published by the Finance Department for local and national taxation purposes.
However, MAP recommended that for national tax purposes, assessment levels should also be applied on the Finance Department’s valuation, as published in the SMV, to temper the impact of inflation in property values when the SMVs are periodically upgraded to conform to current market values.