By Rjay Zuriaga Castor
The Iloilo City Government announced an extension of the 40% discount on Real Property Tax (RPT) payments until 2026, offering relief to businesses and landowners amid a 300% increase in new RPT rates.
Mayor Jerry Treñas said the extension was proposed to address concerns from property owners and taxpayers regarding the updated property valuations.
He made the announcement during a virtual press conference on Wednesday, December 4, coinciding with his 68th birthday celebration.
“The Iloilo City Government is committed to fostering inclusive and responsive governance that prioritizes the welfare of our constituents. Taxes remain the lifeblood of government operations,” Treñas said.
The mayor urged the City Council to expedite amendments to the January 2024 ordinance to formalize the extension.
While the extension aims to ease financial pressures, Treñas reminded the public to pay their taxes promptly to sustain city services.
Initially, the 40% discount was intended for fiscal years 2024 and 2025, with the full 100% RPT payment scheduled to begin in 2026. However, the discount does not apply to additional ad valorem taxes on idle lands.
The revised valuation framework for lands and buildings, approved in June 2023, raised the land levy rate from 1.5% to 2%. The ad valorem tax on idle lands increased from 1% to 2% for residential properties and from 2% to 3% for agricultural, commercial, and industrial properties.
Business owners expressed concerns over the tax hike, fearing its impact on their financial stability.
Treñas also refuted allegations that the RPT increase was tied to loans with the Development Bank of the Philippines or the ongoing construction of public infrastructure, including parking facilities and market renovations.
Councilor Rex Marcus Sarabia, Vice Chairperson of the Committee on Ways and Means, explained that the significant RPT adjustment was due to an overdue update of Fair Market Values, which had not been revised since 2006.
“An increase in RPT is expected when there are massive developments and a prolonged real property boom in the city,” Sarabia said.
He added that the Mandanas Ruling and provisions under the Local Government Code further necessitated the increase, making it legally mandated.