THE Federation of Philippine Industries, Inc. (FPI) said the government needs to review property zonal values which had been artificially inflated by the now-banned Philippine Offshore Gaming Operators (POGOs).
“Property prices were artificially driven up during the previous administration when POGOs were actively encouraged to operate in the country, triggering a surge in demand for residential and commercial spaces,” FPI Chairman Emeritus Jesus L. Arranza said in a statement on Monday.
“Developers, both large and small, capitalized on the influx of foreign workers and gaming firms by raising selling and rental prices, creating a distorted real estate market,” he added.
He said that the economic managers and tax authorities should conduct an “immediate, transparent review of zonal valuations” especially in areas that were heavily affected by the POGO boom, to ensure that property taxes are equitable and aligned with present-day market conditions.
He said POGO-driven property price increases were “not organic” but rather “fueled by government policy that allowed POGOs to flourish.”
President Ferdinand R. Marcos, Jr. banned all offshore gaming operations in his State of the Nation Address in 2024.
The zonal value determines how much property owners have to pay in various national and local taxes, including capital gains tax, documentary stamp tax, value-added tax, donor’s tax, and registration fees, real property tax, special education fund tax, and ad valorem tax on idle land.
“Ordinary citizens are burdened with disproportionately high taxes even when market conditions have already shifted downward following the departure of POGOs,” he said.
“We, the citizens, are being made to suffer because we continue to pay higher taxes and fees related to property ownership, including estate tax for those who have lost a family member,” he added.
He said that the government should immediately recalibrate the zonal value to reflect current market realities as the resulting excessive tax obligations may discourage investments, weaken the real estate industry, and strain household finances.
“The exit of POGOs has clearly changed the landscape … The government must recognize this shift and act accordingly,” he said.
“Adjusting zonal values is… about fairness, accuracy, and protecting citizens from the unintended consequences of past policies,” he added. — Justine Irish D. Tabile
