Marcos open to property tax hike freeze

President Ferdinand Marcos Jr. is open to temporarily suspending increases in real property valuations as the government considers ways to prevent higher property assessments from adding to the financial burden of property owners.

Palace Press Officer Claire Castro said the proposal was raised during Marcos’ meeting with the Private Sector Advisory Council (PSAC) Infrastructure Sector Group – Real Estate at Malacañang Palace in Manila on Tuesday.

Castro said private sector representatives sought a temporary halt to increases in real property valuations, citing current economic difficulties and the need to avoid imposing additional costs on property owners.

“Ang nais po nila ay magkaroon muna ng suspension, suspension ng pagtaas dahil sa nararanasan nating krisis (What they want is for the increase to be suspended for the time being because of the crisis we are currently experiencing),” she said.

The discussion also covered the possible impact of new Schedules of Market Values (SMVs) and general property assessments, including whether real property taxes should be increased, reduced or kept at current levels.

Castro said the PSAC believes this is not the right time to impose additional financial pressure on property owners.

“Parang hindi napapanahon ngayon na dagdagan pa natin ng pasanin ang mga property owners para po hindi naman makabigat pa sa bulsa nila (It seems that now is not the right time to add another burden on property owners, so as not to further strain their finances),” Castro said.

She said the real estate industry has extensive economic linkages, with activity in the sector generating income not only for developers and workers but also for suppliers, banks and housing lenders.

The proposal comes as the government implements the Real Property Valuation and Assessment Reform Act, which aims to establish a more uniform system for valuing and assessing real properties.

Asked if Marcos is inclined to support the private sector’s proposal, Castro answered in the affirmative.

She added that the Department of Finance (DOF) is already taking action on the matter.

“Naging maganda po ang pagmi-meeting po with the PSAC ng ating Pangulo dahil doon ay ipinakita kung gaano kahalaga ang real estate industry dahil sa real estate industry halos lahat, iikot diyan ang ekonomiya (The meeting between the President and the PSAC went well because it highlighted how important the real estate industry is, since a large part of the economy revolves around the real estate industry),” she said.