Finance Secretary Benjamin Diokno said Tuesday real property taxes will help boost the revenue-generating capacity of local government units.
Diokno asked LGUs to strengthen their revenue mobilization capacities through RPT collections to support the country’s economic resurgence.
“Real property tax offers a progressive source of revenue for LGUs. This is strengthened by a credible real property valuation system in improving the government’s revenue generation capacity,” he said during the Bureau of Local Government Finance anniversary seminar titled “Comparative Analysis of Property Tax in Selected Southeast Asian Countries”.
The DOF, through the BLGF, monitors the timely updating of the RPT base and rates of LGUs.
Recommendations to maximize real property collections stem from its findings on the inaccurate representation of economic gains from the property sector. The valuations indicated in LGUs’ schedules of market values are at record lows despite the sector’s growth.
The DOF supports the passage of the Real Property Valuation and Assessment Reform bill, which aims to promote the development of a just, equitable and efficient real property valuation system that will positively impact the revenue generation and resource mobilization performance of LGUs.
The bill is the third package under the Duterte administration’s Comprehensive Tax Reform Program.
Diokno also called for digitalization and commended LGUs that were able to digitalize treasury and assessment operations through electronic payments and implement real estate and geographic systems to enhance RPT collections.
He encouraged local assessors to do the same for the smooth delivery of services.
“In the new normal, we need to make sure that our fiscal position is stable enough to enhance our healthcare system, endure economic shocks, and continue to improve our public services through digitalization,” Diokno said.