25% Tax on Sale of RE

Cong. Salceda filed a bill last January 30, 2023, that imposes a 25% tax on non-essential goods (NEG), which includes RE properties sold for more than P100K per sqm.

JPRE: I don't think this bill would be signed into law. I understand the motive for filing the bill. However, the P100K/sqm filter would practically cover a significant part of the RE industry (i.e., the whole of Makati City).

If it does get passed into law, expect a M-A-S-S-I-V-E sell-off of RE assets before its implementation. Today, if sellers find out that the sale of their RE assets is subjected to 12% VAT, they go ballistic. What more a 25% tax on top of the existing ones?

I also wonder if there would be ready-takers for these properties significantly since the law would increase friction costs by 25% (i.e., if I bought the property during the sell-off, I would be subjected to the 25% tax when I sell it in the future).

It is essential to monitor the development of this bill.

You may view the text of this bill below.