Devolution, looming RPVARA law complicate Iloilo City’s RPT hike

ILOILO City – Mayor Raisa Treñas defended Iloilo City’s real property tax (RPT) adjustments, stressing that the ongoing devolution of national government functions and the forthcoming Real Property Valuation and Assessment Reform Act (RPVARA) have placed heavier fiscal and policy considerations on the city.

“One thing we have to consider is devolution. Indi man ta tanan prepared. Suddenly, kita na ang magasto sang tanan naton nga services like health and education,” Treñas said, citing how the city already shoulders expenses for schools even before full devolution took effect.

“Actually, wala pa gani full devolution pero ang Iloilo City nagabayad na sang tubig, kuryente, kag internet sa tanan naton nga schools. In some cities and provinces, DepEd (Department of Education) ang naga-shoulder sini,” she added.

Her remarks came after economist and former Finance Secretary Dr. Jesus Estanislao advised that while he was not against RPT hikes, they should be implemented gradually.

Treñas agreed, but noted that national reforms will ultimately influence the city’s decisions.

“I-gradual siya siguro moving forward, pero indi naton kalimtan nga may RPVARA na national law nga ma-implement by 2028. Once RPVARA is in place, the national government will set the standard of land values, so indi na ini purely local discretion,” the mayor explained.

To ease the burden on taxpayers, Treñas said the city has rolled out discounts and incentives.

“Gin pamatian naton ang mga pumuluyo. That’s why we provided a 40% discount on the increase until 2026, and upon the appeal of our business sector, I endorsed to the City Council nga i-extend pa ini until 2028. We also have a 10% discount for early payment, 20% for those who install solar panels, and 50% for our heritage buildings,” she said.

“We want our taxpayers to feel that the city government is sensitive to their concerns, while also preparing for the realities of devolution and RPVARA,” she added.

Estanislao, who lauded Iloilo City’s 10.5% economic growth rate — nearly double the national average — called the city a model for other LGUs.

“He called it the ‘Iloilo miracle’ because Iloilo can stand on its own,” Treñas shared, noting his advice to sustain growth through improvements in education, health, and finance without imposing excessive burdens.

Still, Treñas emphasized that long-term planning is key.

“We have to go back to the fact that there’s an RPVARA. By 2028, national government na ang maga-dictate sang land values. So while we listen to suggestions for gradual implementation, we also have to prepare the city for that transition,” she said.

“This is about preparing our city financially while making sure indi mabudlay para sa aton nga pumuluyo,” Treñas said./PN

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