BY GEROME DALIPE IV
ILOILO City – The extension of the 40 percent Real Property Tax (RPT) discount for land until 2026 underscored the delicate balance between providing economic incentives and maintaining fiscal responsibility, according to Councilor Rex Marcus Sarabia, chair of the appropriations committee.
The policy offers substantial tax relief to businesses and property owners, but Sarabia cautioned that it could have long-term repercussions for the city’s financial health.
“This move is very hard and would certainly hurt the city’s coffers in the long run,” said Sarabia.
Nevertheless, he highlighted the importance of the measure to ensure the welfare and economic stability of the Ilonggo community.
“We are willing to give way so as not to compromise the economic growth and welfare of the Ilonggos. We will find a way,” he assured, emphasizing the city government’s commitment to addressing fiscal challenges while fostering development.
Treñas announced via Zoom on Tuesday that the 40 percent RPT discount for landowners and businesses will be extended for another two years, providing financial relief until 2026.
“The Iloilo City Government is committed to fostering inclusive and responsive governance that prioritizes the welfare of our constituents. In line with this, I am pleased to announce that the 40% discount on Real Property Tax for land will be extended until 2026,” Treñas said.
The mayor explained that the move aims to support property owners and taxpayers as they adapt to revised RPT rates based on updated market values.
He underscored that this tax relief reflects the city’s commitment to addressing the concerns of its stakeholders while bolstering economic resilience.
“To formalize this extension, I am calling for an amendatory ordinance to be submitted to the City Council at the soonest possible time,” Treñas added.
He further noted that the measure aligns with the city government’s broader mission of creating a business-friendly environment and promoting sustainable growth in Iloilo City.
The extension ensures that taxpayers will continue to benefit from the reduced RPT rates, reinforcing the city’s dedication to inclusive governance and economic stability.
Interviewed by reporters yesterday, Sarabia said he spoke with Treñas over the phone regarding the proposal to extend the 40 percent RPT discount for land until 2026.
Sarabia shared that Treñas expressed support, urging the City Council to push for the extension.
While the Local Finance Committee is currently evaluating the feasibility of sustaining the discount for another two years, Sarabia noted positive trends in the city’s budget.
He attributed this to the growth in business renewals, the opening of new establishments, and an increased tax allotment from the national government.
“Considering that we have already passed our 2025 budget, the trend is upward. We are trying to accommodate the extension of the property tax reduction to ensure the city government can maintain basic services,” Sarabia explained.
He admitted that the move would strain the city’s coffers but framed it as a reflection of participatory governance and democracy.
“This is hard and will hurt the city’s finances, but we are mere representatives of the people,” Sarabia said, emphasizing the importance of balancing fiscal responsibility with public welfare./PN
