The Department of Human Settlements and Urban Development (DHSUD) and the Department of Trade and Industry-Bureau of Investments are studying a proposal to classify economic housing as corporate income tax-exempt mass housing.
DHSUD Secretary Jose Ramon Aliling said the initiative aims to establish a clearer and more predictable tax incentive framework for economic housing projects under Batas Pambansa Bilang 220.
The proposed study seeks to align the tax treatment of economic housing with that of socialized housing to expand access to affordable homes for the working class.
Aliling said a clear and orderly system for economic housing would accelerate the response to housing needs and strengthen private sector confidence.
The move follows a directive from President Ferdinand Marcos Jr. to adopt a whole-of-government approach in providing decent and affordable housing.
The proposal follows the recent issuance of Revenue Memorandum Order No. 048-2025 by the Department of Finance and Bureau of Internal Revenue.
The order introduced a uniform process for tax exemptions for both socialized and economic housing projects to streamline industry regulations.
The DHSUD and DEPDev previously issued Joint Memorandum Circular 2025-001 to adjust price ceilings for socialized housing under the government’s flagship 4PH Program.
Aliling recommended the formation of a technical working group to conduct evaluations and craft policy recommendations.
He said the effort is intended to sustain vibrancy in the housing sector and improve policy transparency for stakeholders and home buyers.
He said the initiative is not merely a tax issue but a matter of government trust and collective action to meet the demand for affordable living spaces.
