A Philippine real estate industry group welcomed the Marcos administration’s decision to shelve a controversial proposal to raise taxes on property-related transactions, citing improved fiscal performance in early 2025.
The Department of Finance (DoF) has withdrawn the Government Revenues Optimization through Wealth Tax Harmonization (GROWTH) bill, which would have increased capital gains, donor’s, and estate taxes from 6% to 10% between 2025 and 2030.
Finance Secretary Ralph Recto formally requested the withdrawal in a letter to the House Ways and Means Committee, attributing the move to stronger-than-expected revenue collections in the first quarter.
Anthony Gerard Leuterio, president of A Better Real Estate Philippines (ABREP), said the tax proposal would have discouraged property transactions and disproportionately affected middle-income families.
ABREP, which represents brokers, developers and industry professionals, had earlier called on the government to address inefficiencies in spending before imposing new taxes.
“Raising taxes is not the solution,” 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 formed part of the government’s broader strategy to raise PHP 300 billion in revenues to support infrastructure, healthcare, and education initiatives.
However, it faced opposition from business groups, including ABREP and the Management Association of the Philippines (MAP), which cited waste in agencies such as PhilHealth and a decline in public services.
In a letter to President Ferdinand Marcos Jr., MAP urged a moratorium on new taxes until a full audit of government expenditures and fiscal leakage is completed.
While the administration remains committed to long-term fiscal consolidation, the withdrawal of the tax proposal signals a shift toward revenue-neutral policies and greater reliance on structural reforms over direct taxation.
Business News Philippines