Creba welcomes deferment of property reform law

MANILA, Philippines — A group of real estate firms and builders welcomed President Marcos’ move to defer a law centralizing the government’s system for determining property market values.

Under Republic Act No. 12001, or the Real Property Valuation and Assessment Reform Act (RPVARA), the government also seeks to adopt prevailing market value as the single basis for valuing real property for taxation and other government purposes.

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While Marcos signed the law in June 2024 for rollout in 2028–2029, he recently asked Congress to suspend its implementation.Malacañang said the move aims to avoid added property costs for businesses, support investments, and ensure a gradual transition to the new valuation system.In a statement on Monday, the Chamber of Real Estate and Builders’ Associations Inc. (Creba) hailed the deferment as a “timely opportunity” to further review the law’s implementation and its potential impact on taxes, housing affordability and property owners.

“RPVARA should modernize the country’s valuation system without undermining housing affordability, economic competitiveness, and property ownership,” Creba said.

Creba particularly wants the government to assess the reform’s potential effects beyond real property taxes.

According to the group, changes in property valuation could have implications for capital gains tax, documentary stamp tax, transfer taxes, title registration and other property-related costs.

Creba said the government should also study the law’s impact on housing, investments, MSMEs, infrastructure, and the burden on property owners, especially the middle class.Among its recommendations is a phased nationwide transition beyond the law’s first-year cap on increases in real property taxes.

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“We remain committed to working with government to ensure that the law achieves its intended objectives while safeguarding the interests of Filipino homeowners, taxpayers, investors, and the real estate industry,” Creba said.

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Earlier, Bureau of Internal Revenue Commissioner Charlie Mendoza said RPVARA may not automatically raise property taxes, but changes in tax obligations are still expected.

Mendoza had emphasized that the law ultimately provides for a more reliable valuation system for taxation, property transfers, financing, estate settlement, investment and local government planning. /pai