The Department of Finance (DOF) has advised local government units (LGUs) to strengthen their revenue mobilization capacities through real property tax collections.
“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,” Benjamin Diokno, DOF secretary, said during the Bureau of Local Government Finance (BLGF) anniversary seminar yesterday.
The DOF, through the BLGF, monitors the timely updating of the real property tax 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.
Despite the sector’s growth, the valuations indicated in LGUs’ schedules of market values are at record lows.
To address this, 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 revenue generation and resource mobilization performance of LGUs.
The bill is the third package under the previous administration’s Comprehensive Tax Reform Program.
Diokno also reiterated his call 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 real property tax collections. – Angela Celis
