Staggered implementation of revised tax code mulled

The staggered implementation of the Fair Market Value (FMV) where the revised Real Property Tax (RPT) rates will be based is now being considered following the calls of property owners around Cebu City.

This is according to Councilor Noel Wenceslao, chairman of the committee of budget and finance of the City Council, who also authored the Revisions of the Real Property Tax Code of the city.

Cebu City is one of the most highly-urbanized cities in the country.

Wenceslao, however, bared that in terms of RPT, Cebu City has one of the lowest rates, saying that it is because the RPT hasn’t been revised for a long time.

In line with this, Wenceslao said that it is high time to update RPT, including the Fair Market Value (FMV).

“Kay the more na magdugay ta, the more na magka problema ta because of the tremendous increase sa fair market value unya maglisod na nuon og bayad ang atong mga real property owners,” said Wenceslao in an online interview through Sugboanon Channel, a social media page of the Cebu City Government, on Wednesday night, February 14, 2024.

During the public hearing held in November 2023, most members of the Cebu Chamber of Commerce and Industry pleaded to allow them to have a staggered implementation of the revised RPT.

“Kay bug-at man kaayo,” said Wenceslao.

Citing instances, Wenceslao reiterated that just like the RPT rate of South Road Properties (SRP), its FMV was just P1,200 per square meter in 2003. Currently with its development, its revised RPT soared.

“Unya kung ato ng pabayron based on the P150,000 per square meter ang mga locators dira, moangal gyud intawon na sila,” said Wenceslao.

According to Wenceslao, they have understood the reservations of the property owners of the new FMV adding that they may experience profit loss instead of gain.

In line with this, Wenceslao said they have to be balanced in implementing the revised RPT saying that they understand the plight of the businesses who were major contributors to the economic development of the city.

Wenceslao, however, said he already has the final draft of the ordinance that is yet to be presented and discussed before the council.

“In my ordinance, nakasabot ko’s mga businesses nga kinahanglan gyud nato na i-staggered ang implementation,” said Wenceslao.

He, however, added that he cannot reveal the rates yet since it has to be approved by the majority of the city council.

Despite the considerations, Wenceslao said that they need also to let the property owners understand that there is a need to increase the RPT rates at some point.

“But you know, ato lang i-staggered ang implementation,” he said. -