PRESS RELEASE
12 MAY 2023
CUA, ULAP URGE REAL PROPERTY VALUATION REFORM TO EMPOWER LGUS
Quirino Governor Dax Cua, the national president of the Union of Local Authorities of the Philippines (ULAP), on Thursday called for reforms in the country's real property valuation, which he said would empower local government units (LGUs) and improve their service delivery.
During the MOA signing for the Local Governance Reform Project of the Department of Finance-Bureau of Local Government Finance (DOF-BLGF), Quirino governor Dax Cua emphasized the importance of legislating a Valuation Reform Act to enhance local governments' revenue generation capabilities and resource mobilization.
In a video message during the MOA signing program, Cua expressed ULAP's support for real property tax reform, emphasizing that the heavy reliance of LGUs on national tax allocation hinders their ability to operate independently and deliver efficient services to citizens.
"By improving local own-source revenues, particularly through real property tax reform, true local fiscal autonomy can be achieved," Cua said.
Drawing attention to the current state of real property tax revenues in the Philippines, Cua revealed that local business tax collections have exceeded real property tax revenues since 2011.
He further highlighted the pressing need to update the outdated Schedule of Market Value Profiles (SMVs), which has resulted in significant revenue losses amounting to billions. Outdated SMVs have caused missed opportunities for revenue collection across various levels of LGUs, he said.
To address this issue, Cua advocated for the adoption of a single valuation base for all LGUs, the establishment of a valuation standard, the creation of an independent valuation authority, and the improvement of Real Property Tax (RPT) collection.
While several bills regarding real property valuation and assessment reform have been filed in the Senate and the House of Representatives, Cua stressed the urgent nature of this reform, as identified by President Ferdinand Marcos, Jr. himself.
"ULAP is prepared to collaborate with national leaders to ensure the passage of a comprehensive Valuation Reform Act," said Cua.
Cua then called upon national leaders to prioritize real property valuation reform and work together to pass a suitable bill into law.
Providing LGUs with adequate resources and clear service delivery mandates will enable citizens to access the essential services they deserve, he noted.
By addressing the urgent need for real property valuation reform in the Philippines, Cua and ULAP aim to enhance local governments' revenue generation capabilities, achieve true local fiscal autonomy, and improve service delivery to citizens.
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