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Manila slashes maximum realty tax hike by 20%

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MANILA CITY Mayor Francisco “Isko” M. Domagoso has approved a local law that reduces by 20% the maximum increase in real property tax rates next year.

City Ordinance No. 8567, which cuts “incremental real property taxes due all classes of real properties,” takes effect on Jan. 1.

“… [T]here is a need to adopt a more progressive, equitable revenue system to help our taxpayers from [sic] the detrimental effects of economic downturn,” the ordinance read. “This may be achieved through a further reduction in the ceiling on the corresponding increase in the tax levy from 60% by 20% based on the incremental values of real properties under Ordinance No. 8330 (2014 General Revision of Real Property Assessments).”

Hence, the ordinance read, “any tax increase… shall be at the rate of 48%…” provided that “total amount of tax to be paid on land, buildings and other structures and machineries used for residential, commercial, industrial and special classes shall, in no case, be more than double the tax imposed in 2013 over the same real property.”

Mr. Moreno said on Aug. 9 that the ceiling will be cut further by 10% yearly till 2022.

“The City of Manila will lose about a billion pesos pero hindi… natalo ang Manila. Bakit? Nakinabang taga-Maynila (but Manila will not lose. Why? Because citizens of the city will benefit),” he said on Thursday.




RA 7160, or the Local Government Code of 1991, requires real property tax rate adjustments every three years. This requirement is largely ignored, as local officials are elected very three years as well. — Vann Marlo M. Villegas

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