A panel at the House of Representatives has approved the tax provisions of a bill seeking to make first-time home ownership easier and more affordable.
At a hearing conducted by the House committee on ways and means presided by its vice chairman Batangas Rep. Raneo Abu, House Bill 414, or the proposed “First-Time Homebuyers Act,” penned by Bohol Rep. Arthur Yap was approved, setting the stage for the measure’s plenary consideration.
The measure reduces the financing cost, grants tax incentives for the purchase, and enhances private sector participation in housing construction and financing.
The substitute bill was earlier approved and subsequently referred to the Committee on Ways and Means by the House committees on housing and urban development chaired by Negros Occidental Rep. Alfredo B. Benitez and on appropriations chaired by Davao City Rep. Isidro Ungab.
The committee approved a provision in the bill that grants first-time homebuyers exemption from payment of transfer tax due from their home purchase.
Another tax provision in the bill approved by the panel provides for a discount for first-time home purchase and incentive for granting a discount to a homebuyer.
The provision provides that any natural or juridical person registered as owner of a land subject of a subdivision or a condominium project, or who is a dealer directly engaged as a principal in the business of buying and selling real estate, or who is a real estate developer engaged in the business of developing and selling real estate projects for his or her or its own account and any natural or juridical person engaged as a contractor doing housing design and construction or engaged in the business of selling housing construction materials that grants a minimum discount of five percent to first-time homebuyers may claim the financial loss on the discount granted as a tax deduction.
Furthermore, the cost of the discount shall be allowed as deduction from the gross income for the same taxable year that the discount is granted.
The total amount of the claimed tax deduction net of value added tax, if applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code, as amended.
Yap said his bill aims to enable the government to achieve its sworn goal to alleviate the condition and welfare of a majority of the Filipino families, especially those who have the basic need for shelter.
“With this measure, such goal can be partly achieved. It would make it easier and affordable, especially to low and middle income groups, to finally acquire the dream home they may call their own.
