Manila Mayor Isko Moreno has delivered on his campaign promise of giving tax relief to Manilenos by cutting the tax rates imposed on real property. Moreno announced that the Manila City Council has already approved the ordinance slashing real property tax (RPT) by 40 percent over a three-year period.
He told barangay leaders in a meeting on Wednesday that this year, Manila residents will already see a 20-percent cut in their RPT, locally known as “amelyar”. Further 10-percent reductions in RPT will be implemented in 2020 and 2021.
Moreno said concerned agencies of the city government are now crafting the implementing rules and regulations of the ordinance.
Lowering the RPT and business tax was among his promises to residents of the Philippine capital city in his campaign sorties for the mayoral post.
“We will push for the gradual lowering of the real property tax and business tax by 40 percent which we plan to implement for three years. We will lower the rates by 20 percent for the first year, and then 10% for the second year, and then another 10 percent for the third year,” reports quoted him as promising then.
Moreno’s predecessor, former President Joseph Estrada, raised the RPT during his term as Manila mayor to allow the city to collect enough funds to pay its debts.
Last July 31, Moreno signed Ordinance No. 8566 granting “general amnesty on all delinquent business taxes, real property taxes, regulatory fees, and other service charges.”
The amnesty, he said then, would hopefully address the lower number of residents and businesses who are paying their tax obligations to the city government.
He said with the tax cuts and amnesty, residents, and businesses would be encouraged to promptly pay their dues to the city, resulting in higher revenues.
Moreno has become a national sensation due to his live social media appearances while personally overseeing operations to clear the city roads of obstructions.