By CHINO S. LEYCO
The Asian Development Bank (ADB) said yesterday that it will assist local government units (LGUs) in digitalizing their local real property tax valuation and collection.
In a statement, the Manila-based lender said the ADB approved a $26.5 million loan to help LGUs in the country boost revenue by adopting new digital tools for property valuation mechanisms.
Called “Local Governance Reform” project, ADB said it will help LGUs improve real property tax collection thorough introduction of new digital tools for transparent and accurate reporting, and updating tax maps and property valuation assessments.
ADB added that it will help LGUs build a cadre of competent, professional local assessors through capacity development and knowledge partnerships.
Robert Boothe, ADB senior public management specialist said LGUs play a critical role in poverty reduction. “Mobilizing local revenue in an efficient, equitable, and transparent manner is vital to local governments’ goal of delivering accessible, quality public services.
“This new project will provide the digital tools, systems, and local staff training needed to help local governments raise revenue,” Boothe said.
The revenue reforms supported by the project are part of the government’s comprehensive national tax reform program.
Prior to these reforms, technical and institutional challenges had resulted in significant losses in real
property tax collection by local governments.
Some estimates put forgone property tax collection as high as P30 billion from 2004 to 2016.
Since 2006, ADB has supported the Philippines’ efforts to improve efficiency, accountability, and transparency in local governments’ financial management and service delivery.
In 2019, ADB approved a $300 million policy-based loan for the local governance reform program, which aims at helping the government create a legal and institutional framework for local revenue mobilization.
The new project will support the implementation of these policy reforms at the national and local levels.