Embarking on a proactive stand to boost housing reforms, the Department of Human Settlements and Urban Development (DHSUD) now explores applying the result of a study with the Department of Trade and Industry (DTI) and Board of Investments (BoI) to classify economic housing as corporate income tax (CIT)-exempt mass housing under Batas Pambansa Bilang 220.

Secretary Jose Ramon Aliling said DHSUD’s proposed study aims to place economic housing projects under a more transparent, rules-based, and predictable tax incentive framework comparable to the socialized housing framework.

Economic shelter is a category above socialized housing in cost but still aimed at average or lower-middle income groups. Units are priced higher than socialized units but remain within a range deemed affordable for many Filipino families earning modest incomes.

According to the DHSUD chief, the initiative also supports the government’s overarching goal of expanding access to affordable housing while easing regulatory processes that affect priority sectors, particularly the working class.

“We seek a clear and well-ordered system for economic housing. When policies are clear and enforcement is fair, responses to housing needs become faster and the confidence of the private sector is strengthened,” Aliling said.

“This is in line with President Marcos Jr.’s directive to adopt a whole-of-government approach in advancing decent, safe, and affordable housing, while ensuring a dignified quality of life for Filipinos.,” he added, citing DHSUD’s close collaboration with other government agencies to give stability to the housing sector.

Recently, the DoF-BIR issued Revenue Memorandum Order 048-2025, which introduced a more uniform process for tax exemption for socialized and economic housing projects and streamlined and simplified processes in the housing and real estate industry.

Price ceiling adjusted

Earlier, the DHSUD and DEPDev also issued Joint Memorandum Circular 2025-001 that adjusted the price ceiling for socialized housing projects under the flagship Expanded Pambansang Pabahay para sa Pilipino (4PH) program.

“These initiatives are intended to sustain the vibrancy of the housing sector by speeding up processes, improving transparency, and strengthening policies for the benefit of all stakeholders, particularly homebuyers,” Secretary Aliling said.

To advance the proposed policy review with DTI-BoI, Aliling recommended establishing a Technical Working Group to conduct technical evaluations and craft policy recommendations for further consideration by the relevant agencies.

Aliling expressed confidence that the initiative will accelerate housing development, improve coordination across government agencies, and establish a more transparent and predictable incentive framework for housing projects compliant with Batas Pambansa Blg. 220.

“This is not merely a matter of taxation. It is about clear direction, trust in government, and collective action to address the need for affordable housing,” according to Aliling.