Press Release
March 29, 2023

Proposed real property valuation reform measure expected to expedite LGU automation --Gatchalian

Senator Win Gatchalian said the proposed real property valuation reform measure is expected to expedite the automation of local government units (LGUs) across the country and improve efficiency in revenue collection.

"Given that the direction of the current administration is to enhance digitalization of government processes, I believe the measure, once enacted into law, will pave the way for LGUs to automate their processes including revenue collection," Gatchalian said at a recent technical working group of the Senate Committee on Ways and Means, chaired by him.

Currently, only about 68% of LGUs in the country are implementing some form of automation. Out of this number, only 729 LGUs have existing real property assessment processes. The remaining 32%, which are mostly 5th and 6th-class municipalities, have no real property assessment-related system.

According to Gatchalian, full automation of LGUs is also in line with a local governance reform project of the Department of Information and Communications Technology (DICT) providing technical assistance to LGUs on computerization, which includes a computer-aided mass appraisal with a geographical information system or GIS.

"From digitizing forms and simplifying processes, automation of LGU processes increases not only efficiency in providing front-facing services but also enables LGUs to become more relevant to their constituents amid rapid digitalization of our everyday life," he stressed.

Under the proposed Real Property Valuation and Assessment Reform (RPVAR) Act, the Bureau of Local Government Finance (BLGF) of the Department of Finance (DOF) is mandated to develop, adopt, maintain, and implement uniform valuation standards which shall be used by all appraisers and assessors in the LGUs and other concerned parties in the appraisal or valuation of lands, buildings, machinery, and other real properties for taxation and other purposes.

"Inaasahan natin na mapapagtibay nito ang ating hangarin na mas maging episyente ang gobyerno sa pangongolekta ng buwis na hindi kinakailangang magtaas nito," Gatchalian said.

One of the priority bills of the Marcos administration, the proposed measure is also expected to enhance technical cooperation between the national and local governments, lead to a more efficient rollout of infrastructure projects due to minimized valuation disputes, and improve investor confidence and public trust in the government's valuation.

"We have seen from our experience that if you automate all the way to the settlement of fees, you will see an increase in revenue collection without even touching the tax rates. So, I think it is a good opportunity through this law to incentivize and push LGUs to automate," he added, referring to his experience as former chief executive of Valenzuela City.


Reporma sa real property valuation inaasahang magpapabilis ng LGU automation --Gatchalian

Sinabi ni Senador Win Gatchalian na ang panukalang pagreporma sa real property valuation ay inaasahang magpapabilis ng automation sa local government units (LGUs) sa buong bansa at magpapahusay ng pangongolekta ng buwis.

"Dahil ang direksyon ng kasalukuyang administrasyon ay pahusayin ang digitalization ng mga proseso sa gobyerno, naniniwala ako na ang panukala, kapag naging batas na, ay magbibigay daan para i-automate na ang lahat ng mga proseso ng government transactions kabilang ang pangongolekta ng buwis o kita ng gobyerno," sabi ni Gatchalian sa isang technical working group ng Senate Committee on Ways and Means na pinamumunuan niya.

Sa kasalukuyan, halos 68% lamang ng mga LGU sa bansa ang nagpapatupad ng automation. Mula sa bilang na ito, 729 LGUs lamang ang kasalukuyang dumadaan sa proseso ng real property assessment. Ang natitirang 32%, na karamihan ay 5th at 6th-class municipalities, ay walang real property assessment-related system.

Ayon kay Gatchalian, ang full automation ng LGUs ay naaayon din sa local governance reform project ng Department of Information and Communications Technology (DICT) na nagbibigay ng technical assistance sa mga LGU pagdating sa computerization, kabilang ang computer-aided mass appraisal na may geographical information system o GIS.

Hindi lamang nagiging mahusay ang serbisyo publiko sa pagpapasimple ng mga proseso sa gobyerno. Ang automation ay nagbibigay-daan din sa mga lokal na pamahalaan na maging mas malapit sa kanilang mga nasasakupan sa gitna ng mabilis na digitalization ng ating pang-araw-araw na buhay," diin niya.

Sa ilalim ng panukalang Real Property Valuation and Assessment Reform (RPVAR) Act, ang Bureau of Local Government Finance (BLGF) ng Department of Finance (DOF) ay inaatasan na bumuo, magpatibay, at magpatupad ng pare-parehong pamantayan na gagamitin ng lahat ng mga appraiser at assessor sa mga LGU sa pagtatasa o appraisal ng mga lupa, gusali, makinarya, at iba pang real estate property para sa pagbubuwis.

"Inaasahan natin na mapapagtibay nito ang ating hangarin na mas maging episyente ang gobyerno sa pangongolekta ng buwis na hindi kinakailangang magtaas nito," Gatchalian said.

Isa sa mga priority bill ng administrasyong Marcos, ang naturang panukala ay inaasahan ding magpapaigting ng technical cooperation sa pagitan ng pambansa at lokal na pamahalaan, na inaasahang hahantong sa mas mahusay na paglulunsad ng mga proyektong pang-imprastraktura, at magdadagdag ng kumpiyansa ng mga mamumuhunan at tiwala ng publiko.

"Nakita natin mula sa ating karanasan na kung automated na ang lahat ng proseso hanggang sa pagbabayad, makikita mo ang pagtaas ng koleksyon ng kita nang hindi naaapektuhan ang tax rates. Kaya sa tingin ko ay isang magandang pagkakataon sa pamamagitan ng batas na ito ang pag incentivize sa mga LGU na magpapatupad ng automation," kwento niya ng kanyang naging karanasan bling dating alkalde ng Valenzuela City.

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