MANILA, Philippines — The Quezon City council has, despite the Supreme Court’s approval, suspended a real property tax increase for two years.
A report from the Philippine Star said Mayor Herbert Bautista signed into law Ordinance No. SP-2778-2018 on Dec. 6, which suspended the collection of higher real property taxes based on an updated schedule of fair market value until 2020.
The measure suspends the implementation of Ordinance No. SP-2556, which raised real property taxes in the city by as much as five-fold.
Real property taxes in the city would be reverted to previous computation under Ordinance No. SP-397 Series 95 and Ordinance No. 1521 Series 2005 based on the 1996 schedule of fair market value, the report further said.
It also cited members of the city council as saying that the measure was needed to “temper the effects of higher prices of commodities on the residents” brought about by, among others, the Tax Reform for Acceleration and Inclusion Law, which increased prices of basic goods and the weakened peso.
The ordinance raised the value of properties by five times, but actual real property taxes increased by 39 to 131 percent, the report stated.
The schedule of fair market value in the city was increased 21 years ago despite the local government code calling for an adjustment every three years, according to city officials.
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