Finance Secertary Carlos Dominguez has urged the Bureau of Local Government Finance (BLGF) to be at the forefront of helping local governments to adopt digital technologies in order to improve their revenue collection.
Dominguez noted the need to optimize revenue generation powers and improve tax administration at both the national and local levels.
“Even as we stretch resources to stimulate the economy, we must continuously build up our fiscal resilience,” Dominguez said during BLGF’s anniversary webinar yesterday.
“We should now prepare for inclusive, broad-based growth. The local government units (LGUs) will perform important roles in reviving consumer confidence and domestic demand.
They must lead in rebuilding our enterprises and preparing them for the new economy,” he added.
Dominguez said real property tax, as one of the most important fiscal tools in this time of globalization and competition, offers a progressive source of revenue for the local governments.
“Partnered with a credible real property valuation system, this will help improve their revenue-generating capacity,” the finance chief said.
In the same event, Jose Antonio Tan, Asian Development Bank director for public management, financial sector and trade division, cited reasons why reforms in real property tax hold the key to post-pandemic economic recovery.
Tan said real property tax efficiencies in the country are low.
“Based on our recent study, Philippine property prices grew on average 15 percent annually from 2009 to 2018, but real property tax efficiency declined by more than eight percent annually,” he said.
“This suggests that reform which aims to improve real property tax valuation to be closer to market values stands to significantly increase real property tax collection. This enables LGUs to mobilize domestic resources for much needed public services such as livelihood support, health care and education,” he added. – Angela Celis
