The Quezon City Council is considering a 2-year suspension of the increase in the value of the property

SKYLINE OF THE CITY OF QUEZON. A view of the city of Quezon are. Photo of Patrickroque01 on Wikipedia English / Wikimedia Commons

MANILA, Philippines – Quezon City Council wishes to suspend for a period of two years the implementation of an order increasing up to 500% the fair market value (GMV) of land and structures of the city .

City Council said in a statement on Friday, October 26 that the proposed suspension was intended to mitigate the effects of inflation due to the law on tax reform and acceleration and inclusion (trains ).

This comes after the Supreme Court paved the way for the implementation of Order No. SP-2556 after rejecting the application of the Alliance of Quezon City Homeowners' Association Incorporated putting in place cause the constitutionality of the measure.

The ordinance was passed in 2016, but the High Court issued a temporary prohibition order to implement, following the request of the association of owners.

"After two years, the TRO has been lifted and we can actually implement the updated fair market values, but we would be breaking our obligations if we do it now. We do not want to burden the population further, "said Franz Pumaren, adviser to the leader of the majority of the room.

The last adjustment of the FMV in Quezon City dates back to 1996.

Under the proposed suspension order, the updated schedule of land FMVs and base unit construction costs would be suspended for two years, 2018 and 2019.

If the proposed order is enacted, property tax collection for the years 2018-2019 will still be based on the 1996 schedule of FMVs, City Council said.

In a 13-page decision drafted by delegate judge Estela Perlas Bernabe, the SC quoted AQCHI's "lack of legal capacity to prosecute" in rejecting her request.

AQCHI's registration certificate had apparently been revoked by the Securities and Exchange Commission and had not been registered with the Housing and Land Use Regulation Board.

AQCHI had alleged that the 500% increase in FMVs was arbitrary, as the 2016 order did not provide any explanation as to how the city's evaluators had arrived at these amounts. He did not oppose an increase in the value of the properties, but only insisted that it be reduced and implemented in a staggered manner.

The Quezon City government justified the increase, saying that the last increase in FMVs of the properties dates back to 1996 and that the increases in the new ordinance were still lower than those in other metropolitan cities in Manila. – Rappler.com