Goking sees more revenues with newly approved tax law

WAYS and Means committee chair Councilor George Goking on Tuesday said the remaining tax reform package of the previous administration is expected to provide additional revenues in the city.

Recently, House Bill 4339, which was formerly known as the Passive Income and Financial Intermediary Taxation Act (PIFITA), was approved on the third reading by the House of Representatives.

“It seeks to simplify the fiscal structure for passive income, financial services, and transactions,” said Goking.

Goking, who is also the Trade and Commerce committee chair said now that the third package of the Duterte administration’s tax reform program was already approved which will amend the country’s outdated real property valuation system.

“This 3rd measure now intends to fix the tax system to deepen the city’s capital and financial markets,” said Goking.

The still unnumbered substitute bill is a consolidation of at least 13 bills by various House members.

Goking also explained that the House already approved this proposed law in the previous 17th Congress on Nov. 12, 2018, but this had been pending in Senate committees since July 26, 2016.

Earlier, Albay’s 2nd District Rep. Joey Salceda said LGUs would have revenues of up to P30.2 billion in the first year of the measure’s implementation.

” It’s a pro-investment and pro-local government,” said Goking adding that he is grateful for the approval of the Real Property Valuation and Assessment Reform bill.

He added as Package 3 is aimed at developing a professional, credible, and transparent valuation system, it is seen to enhance investors’ confidence in the land and real estate market.

Goking explained that this measure can enhance local government units’ (LGUs) financial self-sufficiency through their increased capacity to generate revenues from real property tax without necessarily adopting new tax measures.

Accordingly, Goking said at present, real property tax is contributing an average of 29 percent to LGU revenues due to outdated property values, which have hindered the growth in tax collections.

“House Bill (HB) 54 is one of the priority legislative measures of President Marcos as announced in his first State of the Nation Address (SONA),” said Goking.

Goking who earlier attended the zonal valuation forum initiated by the BIR-Revenue Region No. 16 expressed support for the proposed legislative measure to institute reforms in the country’s more than a decade-old real property valuation and assessment.

Goking emphasized that with the pronouncement of the President (Marcos Jr), certifying the Real Property Valuation and Assessment Reform Bill as a priority measure of his administration.

“It is high time that this reform is passed in the Senate,” said Goking adding that the valuation reforms that the bill at hand seeks to promote the development of a just, equitable, and efficient real property valuation system.

“This new law will also bring in more investments and additional revenues for the LGUs as this will further invigorate the real estate market,” Goking reiterated.