The Asian Development Bank (ADB) loaned the Philippines $26.5 million or around P1.4 billion for local government units (LGUs) to institute reforms in property valuation and tax collection.

The loan for the Local Governance Reform Project (LGRP) aims to improve the capability of LGUs in assessing and appraising property values so they can raise more revenues from real property taxes. 

The LGRP also aims to implement a property valuation database and information system, as well as improve the capacity of the Bureau of Local Government Finance in exercising administrative supervision and oversight functions over the treasury and assessment operations of LGUs.  

“This financial assistance from the ADB for the LGRP will help LGUs close the digital divide in their respective localities as they pursue property valuation and tax reforms to generate more revenues, in step with President [Rodrigo] Duterte’s goal to modernize Philippine taxation and spell greater fiscal autonomy for our local governments,” Finance Secretary Carlos Dominguez III said.

The total project cost of the LGRP is US$29.8 million (P1.56 billion), of which $26.5 million (P1.4 billion) will be funded by the ADB and the remaining amount will be financed by the government. – Rappler.com