The Senate has approved on third and final reading Senate Bill No. 2386 or the proposed Real Property Valuation and Assessment Reform Act (RPVARA).
With 23 affirmative votes, zero negative votes and zero abstentions, SB 2386 was approved by the Senate during its plenary session on Monday, March 11. The bill is another priority legislation of the Marcos administration
Senator Sherwin Gatchalian said the enactment of the bill into law will provide a respite for taxpayers of real property tax as it sets a two-year amnesty on interests and penalties for taxpayers with unpaid real property tax.
“Waiving the payment of interests, penalties, and surcharges on unpaid or delinquent real property taxes through the amnesty component of RPVARA would encourage tax compliance later on and significantly enhance the government’s revenue-collection efforts,” said Gatchalian, who chairs the Senate Committee on Ways and Means.
The senator said the bill seeks to hasten the automation of services provided by local government units (LGUs), which in turn would enhance the efficiency of tax collection and improve the delivery of services.
This includes the creation of Real Property Information System (RPIS) which will maintain an up-to-date electronic database of the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declaration in the country.
“Through RPVARA, the country will have uniform valuation standards for real property assets, promoting transparency and enhancing confidence among investors,” Gatchalian said.
The senator said establishing a standard valuation will foster equity as it will facilitate property rights enforcement, resulting in wealth generation by converting and mobilizing lands and other real property units into economically productive use.
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