Iloilo City Mayor Jerry Treñas has proposed real property tax (RPT) incentives for business process outsourcing (BPO) company developers in response to concerns over the RPT hike that took effect last year.
Treñas is pushing for amendments to the Iloilo City Economic Recovery Incentive Ordinance of 2021 and updates to investment incentives in key development areas to attract more investors and boost economic growth.
He recently convened property owners, developers, and business leaders for a public consultation to discuss the proposed incentives, which would cover strategic locations such as Corazon Aquino Avenue, the coastal road and radial road, Sen. Benigno Aquino Jr. Avenue, Pison Avenue, and Iloilo Sunset Boulevard.
A key feature of the proposal is granting real property tax exemptions to developers of BPO companies while awaiting accreditation from the Philippine Economic Zone Authority (PEZA).
Businesses investing in these strategic areas could also qualify for business tax and real property tax reductions for up to five years:
- First Year: 100% reduction
- Second Year: 100% reduction
- Third Year: 75% reduction
- Fourth Year: 50% reduction
- Fifth Year: 25% reduction
Treñas said the proposal aims to attract more investors, stimulate Iloilo City’s economy, and generate more jobs for Ilonggos.
The initiative comes after public backlash against the city’s RPT increase, which took effect in 2024 following an ordinance updating property valuations.
The tax hike drew criticism from business groups and property owners who argued that it placed a financial strain on investors and homeowners.
