A lawmaker has filed a bill that seeks to exempt all forms of socialized housing programs and projects from the payment of capital gains tax.
Quezon City Rep. Winston Castelo said the proposal under House Bill 6122 is meant to encourage wider participation in comprehensive and continuing urban development and housing program as well as access to land and housing for the underprivileged and homeless citizens.
Under the bill, exemption of payment of capital gains tax is applicable to all institutions, whether national government’s Key Shelter Agencies or local government units, private sector, non-government organizations or civil society organizations, people’s or cooperative organizations engaged or who shall engage in any form of socialized housing projects and programs.
The bill states that any disposition by way of sale or donation of lands for socialized housing programs and projects shall be exempt from the payment of capital gains tax or donor’s tax, as the case may be.
Castelo said socialized housing program is the most appropriate solution that resolves underprivileged and homeless families’ need for security of tenure and shelter.
“Housing is a basic human need—a matter of concern since it directly and significantly affects public health, safety, the environment and in sum, the general welfare,” he said.
Castelo, chair of the committee on Metro Manila Development and vice chair of the committee on housing and urban development, said aside from the regular fund for social housing granted to the national government’s Key Shelter Agencies, the President has provided P10 billion for high density housing program of the informal settler families living in waterways and danger zones in Metro Manila.
engaged in multi-stakeholders’ arrangement for socialized housing programs and projects intended for the underprivileged and homeless Filipino citizens.
Castelo said through their socialized housing programs and projects, these multi-stakeholders help uplift the conditions of the less fortunate and the homeless by making available decent housing at affordable cost as well as reduce urban dysfunctions, among others.
“In recognition of this multi-stakeholders arrangement of cooperation and to encourage more private sector participants to undertake socialized housing projects and programs, it is necessary and desirable to provide them tax incentives such as exemption from the payment of capital tax gains,” Castelo said.
The bill has been referred to the House Committee on Housing and Urban Development chaired by Negros Occidental Rep. Alfredo Benitez.