Makati Councilors Oppose Real Property Taxes Increase
Makati councilors have firmly declared their opposition to any attempt to raise real property taxes in the city. This stance comes after concerns arose about Makati Mayor Nancy Binay questioning the impact of the 20-percent real property tax reduction enacted in 2024 on barangay incomes.
The councilors, mostly from the majority bloc, interpreted the mayor’s inquiries as a possible move to reverse the tax relief measure. Councilor Martin Arenas emphasized their commitment, stating, “We stand by our decision to approve the 20-percent RPT reduction, and we will oppose any proposal to increase the RPT.”
Background of the 20-Percent Tax Cut
The ordinance reducing real property taxes by 20 percent was passed during former Mayor Abby Binay’s term. The councilors agreed with the former mayor that this reduction would ease the financial burden on taxpayers, including both residents and investors. They also aimed to soften the blow of the Real Property Valuation and Assessment Reform Act (RPVARA) that is set to take effect in 2026.
Arenas explained that without the 20-percent reduction, property owners in Makati could face assessment hikes exceeding 1,000 percent when the new valuation system under RPVARA comes into force. “This tax relief serves as a buffer against such drastic increases,” he added.
Impact on Makati’s Revenue and Competitiveness
Contrary to some assumptions, Arenas assured that Makati’s revenues would not suffer from the tax cut since it applies only to land taxes. Tax rates on property development and machinery remain unchanged. “The projections from our Finance Sector are optimistic, even with the 20-percent reduction,” he said.
He further highlighted that the tax relief could boost Makati’s competitiveness by attracting more investors, which would benefit both the city and its residents. “This measure is designed to make Makati more appealing for investment, which is a win-win for everyone,” Arenas noted.
Concerns Over RPVARA’s Local Impact
Councilors also expressed frustration over the RPVARA law approved by senators, pointing out its heavy impact on local taxpayers. Arenas remarked, “Sana pinag-isipan ng mga senador na inaprubahan ang RPVARA ang epekto nito sa mga ordinaryong may-ari ng lupa sa lokal na antas. Sana naisip nila ang dagdag na pasanin na idudulot nito sa ating mga mamamayan.”
This sentiment reflects the councilors’ desire to protect their constituents from additional financial burdens caused by national legislation.
For more news and updates on real property taxes, visit Filipinokami.com.
