Philippine developers push to delay property valuation reform to 2031
- PSAC-Infra wants RPVARA implementation moved to 2031.
- It proposes capping real property tax increases at 6% a year for three years.
- PSAC-Infra also seeks a four-year extension of the real property tax amnesty.
- The group noted PEZA’s lifting of the Metro Manila IT park moratorium.
MANILA, PHILIPPINES — Philippine property groups want the government to delay a land valuation overhaul by four years, a move that would slow increases in real property taxes on land and buildings, including the office parks that house business process outsourcing (BPO) operators.
The Private Sector Advisory Council Infrastructure Sector (PSAC-Infra) proposed moving the start of the Real Property Valuation and Assessment Reform Act (RPVARA) to 2031 and capping real property tax increases at 6% a year during the first three years.
Palace signals openness to suspending tax increases
The recommendations were presented to President Ferdinand Marcos Jr. at a meeting in Malacañang on Sept. 22, The Manila Times reported.
The Palace said Marcos was open to suspending increases in real property taxes after the meeting, with the Department of Finance (DOF) already working on the matter.
The group also asked for a four-year extension of the real property tax amnesty.
The DOF has previously said RPVARA would not automatically raise real property taxes, since local government units keep authority over assessment levels and tax rates.
Signed into law in 2024, RPVARA seeks to standardize real property valuation so values reflect current market conditions.
IT park moratorium lifted for Metro Manila
PSAC-Infra noted the government’s lifting of the Philippine Economic Zone Authority (PEZA) moratorium on IT centers and IT parks in Metro Manila, a change OA reported in August.
The meeting also covered a proposed National AI Implementation Task Force focused on AI-related risks and opportunities for the information technology and business process management (IT-BPM) workforce.
Real estate accounted for 5.8% of gross domestic product in the first quarter of 2026, below its 6.65% average in 2018 and 2019, the council said.
PSAC lead convenor Sabin Aboitiz said closer government and private sector coordination would be important in addressing pressures on real estate and housing.
For business process outsourcing (BPO) operators and global capability centers (GCCs) leasing space in Metro Manila, a slower property tax transition could limit one source of pressure on occupancy costs.
Firms comparing locations among the top 40 BPO companies in the Philippines can track whether Malacañang adopts the delay.
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