UP BY 10% – Increase covers all local taxes as part of tax reform

Davao City’s Sangguniang Panlalawigan on Tuesday approved on third and final reading an ordinance mandating a new schedule of all lands and base unit construction cost.

The ordinance, to take effect by calendar year 2019, was authored by Councilor Danilo Dayanghirang.

Inclusive on the reform, is a 10% increase on all local taxes, according to Dayanghirang.

“..Pati yang mga elevators ina-aassess yan, kasi all properties attached to the land is real property tax,” he added.

However, Dayanghirang also explained that the increase will be implemented on year 2019 and will be gradual, so as “not stun the tax payers all in one blow.”

The 10% increase will be split into 3 payments; The initial payment is set to levy 1/3 of the total increase for the first year, 2/3 for the second year and full payment on the third year of implementation.

Dayanghirang also shed some light on the taxes relative to those who are within the poverty line, saying that their medical services should be of a very minimal charge.

“Basic principle of the real property tax is affordability. We see to it that whatever increase [implemented] must be based on the [people’s] capacity to pay.” Dayanghirang said.

Meanwhile, Davao City Vice Mayor Paulo Z. Duterte sees that the increase in taxes is a great economic opportunity for the development of the city, as it will also increase the city’s revenue for the betterment of the roads and other infrastructures.

The Real Property Tax Amendment is still set to be approved by the Department of Finance.

The ordinance become part of this city’s code of legislation once signed by Mayor Sara Duterte-Carpio.