BY MARY JOY CAVAÑAS
ILOILO City – Increasing the real property tax here was long overdue, according to Mayor Jerry Treñas, pointing out that there had been no increase for the past 18 years.
He also cited the Mandanas Ruling of the Supreme Court that further devolved many national government responsibilities to local government units (LGUs).
More funds are needed to carry out these added responsibilities, Treñas stressed.
Real property tax is tax is levied on all types of real properties including lands, buildings and improvements. It primarily aims to generate revenue for LGUs to fund their operations, public services and development initiatives such as infrastructure projects.
Treñas also mentioned the impact of the COVID-19 pandemic on the city’s finances. He noted a decrease in the city government’s national share of internal revenue, with a significant additional expenditure of around P500 million due to the pandemic.
This revenue drop necessitated a reevaluation of tax rates, he said.
Moreover, the national government’s revenue collection also dropped during the pandemic, Treñas pointed out, affecting local funding.
For instance, the Department of Health and the Commission on Population downloaded costs of P180 million and P28 million, respectively, to the city government, for various needs including commodities like condoms, he lamented.
The tax increase was a necessary response to these financial challenges and is proportional to the rising value of properties, Treñas said.
He also insisted that the increase was reasonable and had not prompted complaints from major taxpayers.
Treñas had engaged in discussions with local business groups, such as the Philippine Chamber of Commerce and Industry and the Iloilo Business Club, to address any concerns./PN
