What is the revenue impact of the Valuation Reform Act?

By stimulating the land market, the expected direct long-term positive financial impacts of the reform are: (i) increased land-related-related transactions, capital inflow and investments in the economy at the national level thus resulting in increased revenues for the national government through capital gains and other taxes involving transfer of properties, and (ii) improved collection efficiency on real property taxes, as well as other taxes that involves real property, at the local level.

 

The national government is expected to benefit from the reform a potential increment of Php18.49 billion. For the LGUs, based on actual 2017 RPT (basic and SEF) collection data of the BLGF, the minimum and maximum actual increase would be Php12.57 billion and Php30.46 billion, respectively.

Scenario Cities Provinces Total
1 Impact of SMV Reform Only 61,076 24,610 85,685.94
Potential Increment 8,868 3,698 12,566.02
2 Impact of SMV Reform on Optimized

RPT Contribution

61,659 25,017 86,675.87
Potential Increment 9,452 4,104 13,555.95
3 Impact of SMV Reform with Optimized

RPT Collection Efficiency

75,284 28,292 103,575.85
Potential Increment 23,077 7,379 30,455.94
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