Why are 51 provinces losing up to P9.4-B a year?


Posted at Mar 04 2015 01:11 PM | Updated as of Mar 05 2015 05:07 PM

MANILA, Philippines - Fifty-one provinces in the Philippines are losing up to P9.4 billion in real property taxes every year, the Department of Finance said.

In its latest Tax Watch ad, the DOF said the 51 provinces are foregoing these taxes due to outdated schedules of market values (SMV) and low collection inefficiency.

The DOF said these provinces are using outdated SMVs, contrary to the Local Government Code.

The provinces, which include Basilan, Camarines Sur, Marinduque, Negros Oriental, Tarlac and Tawi-Tawi, have been using SMVs dated between 1993 and 2012.

"If fully enforced and properly administered, real property tax is a progressive and stable source of revenues to be shared to municipalities, barangays, and local school boards," DOF said.

Basilan has the most outdated SMV, which is still dated 1993 or 20 years overdue for an update.

This was followed by Camarines Sur, which last revised real property assessments in 1998; Marinduque and Negros Oriental (1999); Tarlac (2000); Tawi Tawi (2002); Albay, Aurora, Bukidnon, Guimaras, Iloilo, Lanao Del Sur and Quezon (2003).

The provinces of Palawan and Westerm Samar also have outdated SMVs, which were last revised in 200. Misamis Oriental's SM was last revised in 2007, followed by Sarangani (2008); Batanes, Bohol, La Union, Leyte, Misamis Occidental, Sultan Kudarat, and Surigao del Sur (2009).

Also included in the list of provinces with outdated SMVs are Antique, Apayao, Batangas, Biliran, Camiguin, Davao Oriental, Eastern Samar, Ifugao, Occidental Mindoro, Southern Leyte, Zamboanga Sibugay (2010); as well as Abra, Cavite, Nueva Viscaya and Pangasinan (2011).

Agusan Del Sur, Bulacan, Cagayan, Capiz, Laguna, Nueva Ecija, Oriental Mindoro, Romblon, Siquijor, Sorsogon, South Cotabato and Zamboanga Del Sur also last revised their real property assessments in 2012.

The DOF noted the P9.4 billion in foregone revenue could have gone to various projects such as 700 public markets, 979 kilometers of roads, 2,738 daycare enters or 9,580 classrooms.