MANILA — President Rodrigo Duterte has approved a project that aims to increase the revenue of local government units by improving their management of real property taxes, according to a document released on Wednesday.
Duterte in Administrative Order No. 40 said the national government "has embarked on a series of continuing reforms to strengthen local governance, improve local resource mobilization, and public financial management through a pragmatic approach."
The Local Government Reform Project (LGRP), in partnership with the Asian Development Bank, aims to boost local government revenue mobilization through improvements on the administration and management of real property taxes," said the President.
This tax is a levy on real properties, including land, buildings, machineries and other affixed or attached improvements not specifically exempted under the law.
Duterte created an inter-agency governing board that will set the policy direction of the project, and cooperation of agencies and relevant stakeholders.
The Finance secretary or undersecretary of the Revenue Operations Group will chair the board, said Duterte.