Higher RPT Soon...

Guess what made it to Congress' top 20 bills to be passed this year?

CNN: "The Marcos administration on Wednesday identified 20 priority measures that it hopes Congress will approve by December this year."

One of the 20 is the "Valuation Reform Bill."

As mentioned in previous posts, this move is the 3rd package of the government's Tax Reform Program (TRAIN), which started during President Duterte's term. The RPT reform is one way the government may get back the revenue lost from tax cuts provided in TRAIN.

What to expect:

1. The BIR will revise zonal valuations more frequently (i.e., ideally every three years).

2. The LGUs will adopt the BIR's property values, effectively increasing properties' "assessed values" and, consequently, increasing RPTs (amilyar).

3. Higher RPT will penalize owners of idle properties, which may push rental prices higher (to make up for the increased expense) or trigger owners to sell idle properties.