Is the government, through the Bureau of Internal Revenue, intent on killing business and small farmers?
This is a question begging for answers from our political leaders as an agri-environment advocacy group sought relief from a BIR order to raise zonal values in Leyte.
Saving Our Soils (SOS) Movement sent to the BIR Region 14 an urgent request for suspension and review of BIR regulation 1-24 on Zonal Values.
Raymundo l. Junia, convenor and chairman of SOS, expressed his concern on the impact to the economic well being of landowners, specially farmers, in the province, explaining that the rise in zonal values means “higher taxes and taxes are inflationary”.
To describe the steep rise in zonal values as “disturbing” is an understatement as it is alarming to the extent that landowners will find the tax to be beyond their reach to pay.
Junia is a landowner from Tolosa, Leyte and describes himself as a new gentleman farmer after retirement. He has started to grow flowers in his half-hectare flower farm in Tolosa.
“Before this BIR Order 1-24, zonal value to my flower farm was P10.00 per sqm. After that “killer” order, it is now P90.00/sqm or an 800% increase,” Junia said.
According to Junia, “In pesos, this translates to increase from about P6,000.00 a year to P34,000.00/year in real estate taxes.”
He pointed out that in his research, Tolosa had the lowest rate of increase while in San Miguel town in the first district of Leyte, increase was 5,355 percent.
“If you look at the numbers, you can see that something is very wrong,” Junia remarked, emphasizing that many farmers, already struggling to sustain their livelihoods, will face additional tax burdens due to the inflated land valuations.
“I wrote a letter to the BIR just in case they overlooked the consequences that it will bring to the local economy,” he stated, underscoring the need for a reconsideration of the measures that could adversely affect economic stability in the area.
In his correspondence, Junia acknowledged the necessity of adjusting zonal values to align with current market conditions.
However, he underscored that the scale of these hikes is excessively alarming and indicates a lack of sufficient stakeholder consultation.
“Such a regulation was enacted without adequate consultations and fails to consider the affordability levels of our community, especially in rural areas that dominate the Eastern Visayas Region,” Junia noted.
The environmental advocate articulated concerns that these drastic zonal valuations could deter potential real estate investments, place undue stress on agricultural producers, and ultimately hinder economic development in rural communities.
The Save Our Soils Movement has called for a more inclusive dialogue involving key stakeholders, including local government units, landowners, investors, and community organizations.
They also urged the BIR to implement zonal values that resonate with actual market conditions, advocating for gradual increases in the future to mitigate potential economic shocks and ensure compliance across various sectors.
If the BIR considers this appeal, the future stability of small businesses and agriculture in Leyte hangs in the balance, with many community members anxiously awaiting a response to their growing concerns.
The outcome of this initiative could have far-reaching implications for the local economy, underscoring the complex interplay between fiscal policy and community welfare.
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