Tax incentives for socialized housing

A BILL seeking to exempt all forms of socialized housing projects from the payment of capital gains tax has been filed at the House of Representatives.

Rep. Winston Castelo (Quezon City) said House Bill 6122 gives exemption of payment of capital gains tax to all institutions, whether national government’s key shelter agencies or local government units (LGUs), private sector, nongovernment organizations or civil society organizations, people’s or cooperative organizations engaged or who shall engage in any form of socialized housing projects and programs.

“(The measure) is in line with the policy of the state to encourage more participation in undertaking comprehensive and continuing urban development and housing program as well as access to land and housing for the underprivileged and homeless citizens,” said Castelo.

He said that socialized housing program is the most appropriate solution that resolves underprivileged and homeless families’ need for security of tenure and shelter.

Excempt

The measure states that any disposition by way of sale or donation of lands for socialized housing programs and projects shall be exempt from the payment of capital gains tax or donor’s tax, as the case may be.

“Housing is a basic human need (which is) a matter of concern since it directly and significantly affects public health, safety, the environment and in sum, the general welfare, said Castell.

Castelo, vice chair of the House committee on housing and urban development, said that apart from the regular fund for social housing granted to the national government’s key shelter agencies, the government has provided P10 billion for high density housing program of the informal settler families living in waterways and danger zones in Metro Manila.

He explained that the private sector and cause-oriented institutions and other organizations are now engaged in multi-stakeholders’ arrangement for socialized housing programs and projects intended for the underprivileged and homeless

Filipino citizens.

Uplift

Castelo said that through their socialized housing programs and projects, these multi-stakeholders help uplift the conditions of the less fortunate and the homeless by making available decent housing at

affordable cost as well as reduce urban dysfunctions, among others.

“In recognition of this multi-stakeholders arrangement of cooperation and to encourage more private sector participants to undertake socialized housing projects and programs, it is necessary and desirable to provide them tax incentives such as exemption from the payment of capital tax gains,” Castelo said.