The largest group of Philippine real estate and housing developers appealed to Congress to shield housing purchases from the looming value-added tax imposition by 2021.
The Chamber of Real Estate & Builders’ Associations Inc. expressed fears the impending imposition of new taxes would hurt government and private sector efforts to address the estimated 6.57 million housing backlog and new requirements 300,000 units every year.
The group said millions of Filipinos working overseas and low-income earners had yet to fulfill their dream of building a home for their families, adding the tax would render them unable to afford the resulting surge in housing prices.
Republic Act 10693, or the Tax Reform for Acceleration and Inclusion (TRAIN Law), passed in December 2017 recognized the clamor of the housing sector by extending for three years the effectivity of VAT-exemption thresholds of up to P1.9 million for lots only and P3.2 million for houses and lots in view of prevailing economic conditions and latest consumer price index.