DOF increase in LGU land tax revenue – Manila Bulletin

The Ministry of Finance (DOF) expects property tax (RPT) revenues to accelerate as local government units (LGUs) improve their digital tools to strengthen local property valuation and collection taxes.

In a statement, Finance Secretary Carlos G. Dominguez III said on Tuesday, June 22 that the government aims to increase LGU RPT revenues to 113.4 billion pesos by 2024, boosted by a Bank-funded project. Asian Development (AfDB).

Finance Secretary Carlos G. Dominguez III

The goal is to significantly improve RPT collections by 26.7 billion pesos compared to what they collected in 2017, an increase of 30.85% thanks to the implementation from this year. the Local Governance Reform Project (LGRP) supported by the AfDB.

Dominguez underlined the importance of the LGRP in strengthening the revenue collection capacities of LGUs during the first virtual meeting on May 18 of the Inter-Agency Governing Board (IGB) responsible for implementing this four-year project.

“This project is quite important. We should pay attention to this because ultimately it will help local governments improve their ability to raise their own finances, ”Dominguez told the IGB board at the meeting.

Dominguez, who chairs the IGB, increased the frequency of IGB meetings from the recommended schedule from twice a year to every two months until the LGRP starts, and set the schedule for the next meeting on July 19.

According to the Bureau of Local Government Finance (BLGF), the LGRP’s goal is that at least 80% or 1,372 LGUs achieve 100% efficiency in collecting and evaluating TOR by 2024, which is expected to increase by 30% the total of own resources. revenues of local communities.

The share of TCNs in local tax revenues has declined since the promulgation of the Local Government Code, and currently contributes only nine percent of corporate tax revenues, which represent 13 percent of total LGU income.

In 2019, about 98 of the country’s 146 cities and 46 of the country’s 81 provinces fail to meet the requirement to reassess properties in their respective jurisdictions once every three years, BLGF said.

Niño Raymond Alvina, executive director of BLGF, said 64% of LGUs have obsolete property appraisals, with the RPT collection efficiency of provinces and municipalities at only 68%, and provinces at only 71%.

As a result, the Philippines lags behind its Asian counterparts in terms of the share of property tax collections in gross domestic product (GDP), Alvina said.

The Philippine property tax rate has been declining since 2003, standing at just 0.5% in 2019, the same as Thailand’s, and well below the 2% average set by the United Nations. economic cooperation and development (OECD).

Singapore’s property tax-to-GDP ratio is 2%, Japan’s 2.5%, and South Korea’s 3%.



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