Reforms in real property valuation to empower LGUs – ULAP chief

Union of Local Authorities of the Philippines (ULAP) national president, Quirino Governor Dax Cua, has called for reforms in the country’s real property valuation to empower local government units (LGUs) and improve their service delivery. During the memorandum of agreement signing for the Local Governance Reform Project of the Department of Finance Bureau of Local Government Finance (DOF-BLGF) on Thursday, Cua emphasized the importance of legislating a Valuation Reform Act to enhance local governments’ revenue generation capabilities and resource mobilization. Cua said ULAP supports real property tax reform, emphasizing that the heavy reliance of LGUs on national tax allocation hinders their ability to operate independently and deliver efficient services to citizens. “By improving local own-source revenues, particularly through real property tax reform, true local fiscal autonomy can be achieved,” Cua said. Drawing attention to the current state of real property tax revenues in the Philippines, Cua said local business tax collections have exceeded real property tax revenues since 2011. He further highlighted the pressing need to update the outdated Schedule of Market Value Profiles (SMVs), which has resulted in significant revenue losses amounting to billions. ‘Outdated SMVs have caused missed opportunities for revenue collection across various levels of LGUs,’ he said. To address this issue, Cua advocated for the adoption of a single valuation base for all LGUs, the establishment of a valuation standard, the creation of an independent valuation authority, and the improvement of Real Property Tax (RPT) collection. Cua said President Ferdinand R. Marcos Jr. has identified the bill as urgent. “ULAP is prepared to collaborate with national leaders to ensure the passage of a comprehensive Valuation Reform Act,” Cua said.

Source: Philippines News Agency