Mabilog’s 80% tax cut proposal flops; Sarabia warns of city budget fallout

Iloilo City councilor Sheen Marie Mabilog presents her proposal to slash real property taxes by 80% during the Sangguniang Panlungsod’s regular session on July 16, 2025. The measure failed to advance after no councilor seconded the motion. MA. THERESA LADIAO/PN
Iloilo City councilor Sheen Marie Mabilog presents her proposal to slash real property taxes by 80% during the Sangguniang Panlungsod’s regular session on July 16, 2025. The measure failed to advance after no councilor seconded the motion. MA. THERESA LADIAO/PN

BY MA. THERESA LADIAO

ILOILO City – A controversial bid to slash real property taxes here by 80% failed to gain even basic traction at the Sangguniang Panlungsod, with no councilor willing to second the motion, effectively killing the proposal on the floor.

The proposed ordinance, filed by neophyte councilor Sheen Marie Mabilog, aimed to grant massive tax relief in response to public backlash over what she called a “400% increase” in real property taxes.

But during Wednesday’s regular session, her motion was met with silence. Without a seconder, it was promptly declared “motion lost.”

Majority Floor Leader and Committee on Appropriations chair Councilor Rex Marcus Sarabia later revealed strong opposition to the measure, warning of dire financial consequences should the city push through with such a sweeping cut.

“She proposed it for first reading, but regrettably, no one seconded the motion,” Sarabia said in an interview. “I mentioned on the floor that she is still welcome to raise the matter during the Committee on Ways and Means hearing, especially since there’s already a standing proposal to extend the existing RPT discount. That venue would allow a deeper discussion with the City Treasurer, stakeholders, and other departments.”

But Sarabia was blunt in his assessment of the proposal: “Frankly, I don’t agree with the measure. As Chair of Appropriations, I handle the city’s budget, I know its ins and outs. Iloilo City already has one of the most affordable real property tax rates compared to cities like Cebu or Bacolod. We even extended the current discount. An additional 80% reduction would, to be candid, fuck up our budget. It would wreck the programs of the city.”

He argued that giving up more revenue would severely undermine Iloilo City’s development momentum: “If we keep reducing our revenue through heavy discounts, how will we fund services for our people? We’re not just talking about taxes, we’re talking about economics, services, and long-term infrastructure.”

Mabilog, however, defended her proposal, saying it stemmed from her campaign promise and was a response to public frustration over high tax burdens.

“My intention was to reduce the burden on our taxpayers, especially after the 400% increase in RPT,” she said. “I didn’t expect no one would second the motion. That’s their accountability now to the people. But for me, what’s important is that I fulfilled my promise to bring this issue forward.”

The ordinance she proposed sought to impose only 20% of the rates approved under Tax Ordinance 2023-226, which took effect last year. Mabilog also cited inflation, lingering economic effects of the pandemic, and the absence of adequate consultation before the tax hike was passed.

Despite the initial defeat, Mabilog signaled that she was not giving up: “We, as councilors, all have the right to file proposals. I believe this issue is urgent and needed by the people. I will continue pushing for relief. The committee hearings will give me another opportunity to raise this.”

Sarabia, meanwhile, maintained that governance must remain fiscally grounded.

“We’re not just passing ordinances for applause. Every peso discounted is a peso taken away from health, education, housing, and development,” he stressed.

While Mabilog has yet to confirm whether she will refile the proposal in a revised form, Sarabia was open to further discussions in the appropriate committee setting.

“She may have lost the motion today, but not the war,” he said. “If she wants to argue it in committee, she’s free to do so. But she’ll have to make a strong, data-driven case.”/PN

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