Enactment of RPVARA to provide amnesty on interests, penalties for taxpayers with unpaid real property tax --Gatchalian

As the Senate approved on third and final reading the proposed Real Property Valuation and Assessment Reform Act (RPVARA), Senator Win Gatchalian said the enactment of the measure will provide a respite for taxpayers of real property tax as the measure sets a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax.

"Waiving the payment of interests, penalties, and surcharges on unpaid or delinquent real property taxes through the amnesty component of RPVARA would encourage tax compliance later on and significantly enhance the government's revenue-collection efforts," said Gatchalian, who chairs the Senate Committee on Ways and Means. RPVARA is a priority legislation of the Marcos administration.

Also, the proposed legislation, once enacted into law, would hasten the automation of services provided by local government units (LGUs), which in turn would enhance the efficiency of tax collection and improve the delivery of services. This includes the creation of Real Property Information System which will maintain an up-to-date electronic database of the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declaration in the country.

"Through RPVARA, the country will have uniform valuation standards for real property assets, promoting transparency and enhancing confidence among investors," Gatchalian said. According to him, establishing a standard valuation will foster equity as it will facilitate property rights enforcement, resulting in wealth generation by converting and mobilizing lands and other real property units into economically productive use.

Gatchalian said the country's real estate and land enable wealth generation is only at 30.7%, lower than the average of major economies in Southeast Asia which is at 35%, thus the necessity to establish a uniform valuation standard for real estate in order to attract investments that would make use of real estate assets.

He pointed out that based on data from the Philippine Statistics Authority (PSA), the gross value-added contribution of real estate and ownership of dwelling in 2023 stood at an impressive P1.37 trillion pesos, equivalent to 5.6 percent of our gross domestic product (GDP).

Gatchalian emphasized that real property tax (RPT) includes other taxes such as Special Education Fund, Idle Land Tax, and other special levy taxes. These taxes can be imposed by a local government unit (LGU) pursuant to the Local Government Code.

Pagsasabatas ng RPVARA magbibigay ng amnestiya sa mga hindi nakabayad ng interes, multa ng real property tax --Gatchalian

Inaprubahan na ng Senado sa ikatlo at huling pagbasa ang panukalang Real Property Valuation and Assessment Reform Act (RPVARA), at sinabi ni Senador Win Gatchalian na ang pagsasabatas ng panukala ay magbibigay ng amnestiya sa loob ng dalawang taon sa mga hindi nakabayad ng interes at multa ng real property tax.

"Ang hindi pagbabayad ng mga interes, multa, at surcharge sa mga hindi nabayaran o delingkwenteng real property tax sa pamamagitan ng amnesty component ng RPVARA ay maghihikayat sa mga taxpayer na sumunod sa mandatong magbayad ng buwis at magpapahusay sa pagsisikap ng gobyernong mangolekta ng buwis," sabi ni Gatchalian, na namumuno ng Senate Committee on Ways and Means. Ang RPVARA ay isang priority legislation ng administrasyong Marcos.

Ang pagsasabatas ng naturang panukala ay magpapabilis sa pag-automate ng mga serbisyong ibinibigay ng mga local government unit (LGU), na magpapahusay naman sa pangongolekta ng buwis at pagpapabuti ng paghahatid ng mga serbisyo. Kabilang dito ang pagtatatag ng Real Property Information System na magpapanatili ng updated electronic database ng mga impormasyong may kinalaman sa mga transaksyon ng real property sa bansa.

"Sa pamamagitan ng RPVARA, ang bansa ay magkakaroon ng pare-parehong mga pamantayan para sa real estate assets na magtataguyod ng transparency at magpapaigting ng kumpiyansa sa mga mamumuhunan," sabi ni Gatchalian. Ayon sa kanya, ang pagtatatag ng isang standard valuation ay magtataguyod ng equity dahil ito ay magpapatupad ng mga karapatan sa ari-arian, na magreresulta sa paglaki ng yaman sa pamamagitan ng pag-convert at paggamit ng mga lupain at iba pang property unit para sa ikauunlad ng ekonomiya.

Sinabi ni Gatchalian na ang real estate at land enable wealth generation ng bansa ay nasa 30.7% lamang, mas mababa kaysa sa average ng mga pangunahing ekonomiya sa Southeast Asia na nasa 35%, kaya kinakailangang magtatag ng pare-pareho o uniform valuation standard para sa real estate nang sa gayon ay makaakit ng mga mamumuhunan.

Ipinunto niya na batay sa datos ng Philippine Statistics Authority (PSA), ang halagang idinagdag na kontribusyon ng real estate at pagmamay-ari ng tirahan noong 2023 ay umabot sa kahanga-hangang P1.37 trilyong piso, katumbas ng 5.6 porsyento ng gross domestic product (GDP) ng bansa.

Binigyang-diin ni Gatchalian na kabilang sa real property tax ang iba pang buwis gaya ng Special Education Fund, Idle Land Tax, at iba pang special levy taxes. Ang mga buwis na ito ay maaaring ipataw ng isang local government unit (LGU) alinsunod sa Local Government Code.