The Private Sector Advisory Council (PSAC) Infrastructure Sector has proposed delaying implementation of the Real Property Valuation and Assessment Reform Act by four years, citing pressures on the real estate and housing sectors.
The proposal was raised during a meeting with President Ferdinand Marcos Jr. at Malacañang on Tuesday, where the council discussed challenges facing the property sector. The Palace had earlier said Marcos was open to temporarily suspending implementation of the law. Philippine News Agency
In a statement Friday, the PSAC said it recommended moving the start of implementation of Republic Act No. 12001 to 2031, extending the real property tax amnesty by four years and limiting annual real property tax increases to six percent during the first three years of transition.
The council said the measures would give property owners, developers and local governments more time to adjust to the new valuation system.
PSAC also proposed an Urban Housing Affordability Program that would allow developers to offer existing ready-for-occupancy condominium units at discounted prices in exchange for incentives or credits toward their balanced housing obligations.
It also sought an earlier adjustment of socialized housing price ceilings within 2026 amid higher construction costs, instead of waiting for the scheduled review in December 2027.
The council said the property sector remained a major contributor to economic activity, with construction alone employing about 4.7 million Filipinos. It warned that slower project launches and construction could affect jobs, housing supply and local government revenues.
PSAC also discussed the proposed creation of a National Artificial Intelligence Implementation Task Force to address risks and opportunities arising from AI, particularly for the information technology-business process management sector.
