MANILA - The city council of Manila has passed an ordinance that would cut real estate tax rates in the capital city by 40 percent in a span of 3 years, Mayor Isko Moreno said Wednesday.
It will be reduced by 20 percent in 2019 and by another 10 percent in 2020 and 2021, Moreno said during a meeting with Manila’s barangay chairpersons.
“Passed na, ginagawa na lang yung IRR (Implementing Rules and Regulations),” he said, without disclosing details of the ordinance.
Manila’s real estate tax was raised by 300 percent under the administration of former Manila Mayor Joseph “Erap” Estrada to pay the capital’s P5.5 billion debt in 2013.
Estrada cancelled a 2017 tax hike in the city, saying the capital has fully paid its dues. The actor-turned-politician ended his mayoral term earlier this year, leaving behind a P4.4-billion debt, the Commission on Audit said.
Manila collects only P10.5 billion of the city’s P14.10 billion real estate taxes, Moreno said in a previous interview with ABS-CBN News.
Lowering the tax rate and implementing a tax amnesty program could entice more people to pay their dues, he said.