A prominent Philippine real estate group has welcomed the Marcos administration’s decision to withdraw a proposal to raise taxes on property transactions, after the government posted stronger-than-expected revenue performance in the first quarter.
The Department of Finance (DoF) said it will no longer pursue the Government Revenues Optimization through Wealth Tax Harmonization (GROWTH) bill, which aimed to raise capital gains, donor’s, and estate tax rates from 6% to 10% between 2025 and 2030.
Finance Secretary Ralph Recto, in a letter to House Ways and Means Committee Chair Jose Ma. Clemente Salceda, formally requested the withdrawal of the measure, citing improved fiscal conditions.
“The Department respectfully requests to withdraw consideration thereof in view of the better-than-expected revenue performance during the first quarter of the year,” Recto wrote.
The policy reversal drew praise from A Better Real Estate Philippines (ABREP), which represents brokers, developers, and allied professionals. The group had earlier urged the government to focus on expenditure reform and fiscal audits before introducing new tax measures.
“Raising taxes is not the solution,” ABREP President Anthony Gerard Leuterio said. “The issue isn’t a lack of funds, but how those funds are managed. Without accountability, higher taxes risk punishing property owners and ordinary families.”
The GROWTH bill had been part of the DoF’s broader plan to raise up to PHP 300 billion in revenues to support infrastructure, healthcare, and education.
However, the proposal met pushback from business groups, including ABREP and the Management Association of the Philippines (MAP), which cited inefficiencies in agencies such as PhilHealth and the continued underfunding of public hospitals.
The Marcos administration said it remains committed to long-term fiscal consolidation but is now placing greater emphasis on revenue-neutral measures and structural reforms.
Business News Asia