Editorial

by ERNESTO T. SOLIDUM

Proposed Base Market Values 

of Aklan Real Properties 

The provincial Assessor’s office has recommended a Base Market Values of real properties based on the 2005 data for all 17 municipalities in the province of Aklan. The increase in base market value for residential is 125-173 percent, commercial 142-200 percent and 125-200 percent industrial for urbanized Kalibo. For other municipalities (2nd, 3rd, and 4th class) the rated increase is an average of 130 percent. 

Meanwile, the increase in tax due for residential lands is 31-105 percent, 137-200 percent for commercial and 122-200 percent industrial. In Boracay Island, Malay residential is an astounding increase of 181-241 percent, commercial 148-200 percent and industrial 120-200 percent. 

According to the Provincial Assessor, the justification for the phenomenal increase is that the province failed to revise the base market values since 2005. This is lost opportunity and the recommendation is prepared to cope with this predicament. There are consistent increases of land valuation over the years as evidenced by copies of deed of absolute sale and mortgages filed in the office of the provincial assessor.

According to Ms. Suzette Pioquid, the expected revision of base market value would translate to P54 million starting 2015 when the proposed Ordinance is approved and implemented. However, revising tax declaration of all real estate owners will cost the province P14 million. 

Comments/Suggestion

Taxes for development sounds very desirable in a democratic and progressive society. We need tax money to build roads, classrooms, hospitals, ports and others. There is vital consideration that citizens must be aware of hence to pay taxes correctly and religiously. 

However, the formulation of taxation, must be humanized taking into consideration the financial status of the people. Leonore Briones, UP Economist and author alludes to taxation as the art of plucking feathers from a hen without the bird protesting it. It’s probable that the previous Administration of Gov. Carlito S. Marquez chosed to withhold the revision of real property taxes because of stagnating economy despite the booming tourism revenues of Boracay. Spike in investments on real estate is attributed to OFW’s, foreigners married to Pinays and businessmen from other provinces. 

Climate change is a factor to be included in the planning because from 2005-2013, a gap of 8 years, two super typhoons namely: Frank and Yolanda ravaged Aklan and people has to recover from the calamity. Farmers and fisherfolks grapple with weather uncertainties which are intense since in recent years resulting to low production and income. 

For the last nine years, NSCB reported that 27 percent of Aklan’s population are living below the poverty line. In the first quarter of 2013, it was reduced to 21 percent. However, in the last quarter of 2013, typhoon Yolanda struck and vaunted the increase gone in the wink of an eye. Full recovery is expected in 2015 or about the time tax increases commence.

Socio-economic Planning Secretary Arsenio Balisacan has classified the provinces grappling with poverty into 3 which are: Category 1 – robust commercial activity as Pangasinan, Iloilo, Negros Occ., and Quezon. Category 2 – limited economic opportunities for growth as the ARMM, and Category 3 – Areas prone to calamities like Eastern Visayas.

Based on the above description and classification, Aklan is included in Category 3 because it is prone to natural disasters. Our manufacturing sector is very weak, largely dominated by micro industries which are labor intensive, family owned and employing less than 9 percent workers. Moreover, infra development is inadequate as hinterland barangays of Libacao and Madalag are not connected to the center of commerce and industry. They are more often isolated during periodic floods and typhoons. The same is true in agriculture and fisheries since Aklan relies heavily on foodstuff coming from neighboring provinces. 

Aklan desperately needs investors especially in manufacturing, business, tourism and recreation. However, for Aklanons to do so, taxes must be reasonable. A 200 percent increase for commercial land outside of Boracay is not acceptable to most investors. An investor has to pay other obligations like electricity, building rental, business tax, and Mayor’s Permit among others. With less investors, there will be scant employment opportunities.

As to the Schedule of Base Market Values for agricultural lands, there is no figure. Hence, it is believed the province condones payment from landowners in the form of taxes.

The reason why we are poor as a nation because we turn a blind eye on “black spots” of our natural resources. This agricultural areas must be taxed as commercial land since owners are business speculators. Financial burden may force them to develop real estate into productive uses like agro-forestry, pasture land and recreation area. Better still, owners must be forced to sell property to more enterprising individuals. Evidently, this needs legal statute to be effective. 

It is suggested to the Committees on Appropriation, Budge and Finance and Ways and means that the updated base market values of real properties be reasonable, just and affordable considering that 30 percent of Aklan’s population is living below the poverty line (computed by 26,485 households, 6 family members as 4P’s beneficiaries) and recent ordinance passed by SP condoning payment for real property taxes due to typhoon Yolanda. It is humbly suggested that 40 percent across the board be levied on all classes of real estate based on 2005 data effective January 1, 2005. 

It is expected that 40 percent increase will be revised again in 2018 and every 3 years thereafter. A staggered approach is recommended compared to drastic and unrealistic proposals that can significantly affect the provinces’ impressive performance in tax collection. /MP