Councilors appeal to BIR to stop increase of zonal valuation

May. 26, 2015

DAVAO CITY – Second district City Councilor Danilo Dayanghirang on Tuesday urged the Bureau of Internal Revenue (BIR) not to immediately implement an increase in zonal valuation here.

“I am calling as a public servant to the BIR, please do not immediately implement any increase of zonal valuation because you are disturbing the progress and the development of the city,” Dayanghirang said during the City Council regular session.

The BIR 11 plans to increase valuation of real estate properties here. Lands within the downtown area will be valued at P60,000 per square meter (sq. m.) while those in some barangays on the outskirts that are currently estimated at P1,500 per sq. m. will be increased to P9,500 per square meter

Dayanghirang said that increasing the zonal values here means higher taxes for the people of Davao.

“I hope the BIR will sit down with the City Development Council, the decision makers of the City Hall, the Executive Department and the committee of finance,” he said.

“I am urging the national government that any policy direction, project implementation that will directly affect the people of Davao, please in due respect to the duly constituted authorities as provided by the local government code, in the name of transparency, inform us,” he added.

Meanwhile, Councilor Diosdado Mahipus said that the BIR is taking the freeway in updating the tax rates.

“I think the reason why this is happening because of the so-called tax reform system that is being funded by the United States government,” Mahipus said.

“I was informed that 542 million US dollars has been set aside under the so-called millennium challenge fund and this is given to the Department of Finance and the Bureau of Internal Revenue Manila so that they will fast track any tax reform system,” he added.

Mahipus said that one of the objectives of this tax reform system is to upgrade the zonal values here because compared to other countries, zonal valuation here is much lower.

He also said that this increase will discourage investors from setting up operations in the city. (

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