Traders oppose BIR plan on zonal value hike

ANGELES CITY — A group of businessmen has expressed opposition to the plan of the Bureau of Internal Revenue (BIR) District Office here to increase the zonal value of properties to P2,500 per square meter.
Metro Angeles Chamber of Commerce and Industry Incorporated (MACCII) chairman Mario Lazatin, together with other businessmen, submitted a position paper before the BIR office stipulating comments and recommendations regarding the planned increase in zonal valuation by as much as 1,400 percent.
The increase of property value will result in the increase in the capital gain tax the government imposes on real estate owners and developers.
Lazatin said they are opposing the drastic increase of the property value, which was announced during a public hearing on March 7, 2012.
He however clarified that they are not against the tax increase, but that it should be done in a smooth manner.
BIR Revenue District Officer Rosalina Legaspi, for her part, said there were no increase in property value and tax over the past 16 years. She added that the increase may be implemented every three years.
Based on the study conducted by MACCII, the increase acceptable to businessmen is 100 percent increase or P1,000 per square meter, according to Lazatin.
The group’s position paper stated that the people of Metro Angeles have been groaning under a staggering load of economic woes brought about by a series of natural and political calamities like the eruption of Mount Pinatubo in June 1991, the world financial crisis, the increase of peso value, which affected the competitiveness of local exporters and others.
Lazatin said tourism and the investments would be greatly affected by this drastic increase in zonal values.
The increase in real property taxes, which will be spurred by the zonal value hike, would also “slow down” economic activities and prejudice the prospects for home ownership for the low-income bracket, the traders’ position paper also stated.
Lazatin claimed that the city and other areas around the Clark Freeport should be competitive in terms of taxes in order to attract tourists and investors.
The BIR Angeles City District Office covers this city and four Pampanga towns including Mabalacat, Arayat, Magalang, and Porac.
Lazatin said they are willing to work out with the BIR in order to come out with a win-win solution to the problem.
http://www.sunstar.com.ph/pampanga/local-news/2012/03/15/traders-oppose-bir-plan-zonal-value-hike-211333

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