The Senate on Monday approved on third and final reading a bill instituting reforms in real property valuations and assessments in the Philippines.

Senate Bill 2386, titled the Real Property Valuation and Assessment Reform Act, garnered 23 affirmative votes, zero negative votes, and no abstentions.

The measure is a priority legislation of the Marcos administration.

According to its proponent, the measure will provide a respite for real property taxpayers as it sets a two-year amnesty on interest and penalties for taxpayers with unpaid real property taxes.

“Waiving the payment of interest, penalties, and surcharges on unpaid or delinquent real property taxes through the amnesty component of the RPVARA would encourage tax compliance later on and significantly enhance the government’s revenue collection efforts,” Senator Win Gatchalian said.

Gatchalian, who chairs the Senate Committee on Ways and Means, said the proposed legislation, when enacted into law, would hasten the automation of services provided by local government units, which in turn would enhance the efficiency of tax collections and improve the delivery of public services.

The measure includes the creation of a Real Property Information System, which will maintain an up-to-date electronic database on the sale, exchange, lease, mortgage, donation, transfer, and all other real property transactions and declarations in the country.

“Through the RPVARA, the country will have uniform valuation standards for real property assets, promoting transparency and enhancing confidence among investors,” the senator said.

He pointed out that establishing a standard valuation will foster equity as it will facilitate property rights enforcement, resulting in wealth generation by converting and mobilizing lands and other real property assets into economically productive use.

He noted the country’s real estate and land enable wealth generation of only 30.7 percent, lower than the average of major economies in Southeast Asia at 35 percent.

Citing data from the Philippine Statistics Authority, Gatchalian pointed out that the gross value-added contribution of real estate and ownership of dwellings in 2023 stood at an impressive P1.37 trillion, equivalent to 5.6 percent of the gross domestic product.