Government losing P20B due to outdated real property values

MANILA, Philippines - The government estimates that the country is losing about P20.3 billion in revenues from cities that continue to use outdated market values in collecting real property taxes.

According to the government’s latest TaxWatch campaign, 112 of the 144 cities are still using obsolete schedule of market values (SMVs), thus depriving the government of substantial revenues.

About P15.9 billion of the P20.3 billion foregone revenues come from 51 metropolitan areas and highly urbanized cities alone.

The lost revenues could have been used to develop 1,015 satellite centers, 2,929 low-cost resettlement houses, 451 transport terminals and 298 sanitary landfills, the DOF said.

The cities of Malabon and Navotas have the most antiquated SMV which was last revised in 1993.

Gapan, San Fernando (La Union), Tanauan, Valencia, Tuguegarao, Baguio, General Santos, Mabalacat and Quezon City last revised their SMVs in 1994 to 1996.

The SMVs of Makati, Oroquieta, Parañaque, Pasig, Pateros, San Juan and Toledo are 16 years overdue for an update while Calbayog, Danao, Kidapawan, Malolos, Mandaue, Ormoc, Tabaco, and Tacloban last updated their SMVs in 2000.

Mandaluyong City last revised its real property assessments in 2001.

Provinces and cities are mandated to update their SMVs and conduct a general revision of property assessments and classification every three years.

Among the cities that were compliant in updating their SMVs are Angeles, Bacolod, Antipolo, Balanga, Batangas, Bislig, Cabanatuan, Calamba, Candon, Cauayan, Dasmariñas, Dipolog, Escalante, Gingoog, Himaymaylan, Iligan, Iloilo, La Carlota, Malaybalay, Manila, Masbate, Muntinlupa, Sagay, San Carlos, San Jose, San Pablo, Sipalay, Surigao, Tacurong, Tandag, Science City of Muñoz, Valenzuela and Vigan.

“If fully enforced and property administered, real property tax is a progressive and stable source of revenues to be shared to the barangays and the city school boards,” the DOF said.