Philippine Govt Drops Property Tax Hike Plan Amid Strong Revenues

The decision to withdraw a proposal to raise taxes on property transaction has been welcomed by a prominent Philippine real estate group, after stronger-than-expected revenue performance was posted by the government in the first quarter.

The government revenues Optimization wealth tax Harmonization (Growth) bill, which sought to increase the rates for inheritance, donor, and capital gains taxes from 6% to 10% between 2025 and 2030, will no longer be pursued, according to the department of finance (DoF). A letter was sent by Finance secretary Ralph recto to house ways and means committee chair jose Ma. Clemente Salceda, in which the withdrawal of the measure was formally requested, citing improved fiscal conditions. “The Department respectfully requests to withdraw consideration in view of the better-than-expected revenue performance during the first quarter of the year".

“Raising taxes is not the solution," ABREP President Anthony Gerard Leuterio said" The issue isn't a lack of funds, but how those funds are managed, without accountability higher taxes risk punishing property owners and ordinary families." The Growth bill had been part of the DoF's broader plan to rise up to PHP 300 billion in revenues to innovation and infrastructure, healthcare, and education.