In its efforts to streamline its revenue collections, the Bureau of Internal Revenue (BIR) may have killed off chances for economic growth in one of the Philippines' poorest regions.
That was the contention of a consumer advocate as he raised concerns over the BIR regional office's resolution regarding zonal values of land in different municipalities in Leyte.
In a letter sent to the BIR's Eastern Visayas office last November 29, Save our Soils convenor Ray Junia argued that while it is important to update zonal values to reflect the current market conditions, the zonal rates set for Eastern Visayas will actually kill off small farmers and businesses.
Citing as an example his own coconut property in his hometown of Tolosa, Junia added that the zonal values as set forth in BIR Regulation 1-24 which took effect this year has resulted in an "unprecedented" increase in real estate values in Leyte province.
"These values reflect an unprecedented increase of 800 percent in my cocoland property in Tolosa, Leyte compared to the 1997 zonal valuations previously in force," he explained.
In other towns in Leyte province, BIR zonal values also reached record-high levels, such as in Alang-Alang (2,900 percent) and San Miguel (5,355 percent).
This drastic increase in zonal values could make it more difficult for investors to purchase property in Leyte province, while small landowners will have to pass on the burden of higher taxes to consumers, spiking up inflation.
"Higher taxes can discourage investment in agricultural land or lead to landowners selling their properties. If agricultural land is converted for other purposes, this reduces the total land available for farming, potentially decreasing supply and driving up the prices of agricultural goods," Junia said.
The Save our Soils leader urged BIR officials to conduct consultations with stakeholders, particularly local government officials and landowners, to ensure that zonal values will reflect the economic realities faced by Eastern Visayas communities.
He also recommended phasing in any future increases gradually to "avoid economic shocks and ensure compliance for all affected sectors."
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