The Department of Finance is keen on pushing for the reform on the updating of valuation of real properties in the country to boost the revenues of local government units.

In a press briefing in Malacañang on Tuesday, Finance Secretary Benjamin Diokno said that under the reform, the DOF will lead the updating of valuation of real properties instead of the LGUs.

Diokno implied that there may be instances that local politicians may pass ordinances updating their respective zonal values but at their vested interest. Such problem can be addressed under the new policy once implemented.

“Ang talagang bread and butter ng LGUs is iyong real property tax and l, if you are politician, you are inclined to adjust the real property tax, hindi ba?” Diokno remarked.

Diokno noted that the valuation will be adjusted every three years.

“With the new law, iyong valuation, will now be done through the Department of Finance, hindi na by the local government, so every three years i-a-adjust namin iyong valuation. So, I think that will help increase the revenue yield of LGUs,” he added.

During the briefing, Diokno also mentioned about the DOF’s request to the President to urge LGUs to expand its revenue sources and boost spending to support local and national growth.

He said that despite possessing broad powers to raise revenue independently, LGUs have been traditionally reliant on national transfers. PND