President Ferdinand Marcos Jr. requested that Congress temporarily suspend the implementation of Republic Act No. 12001, also known as the Real Property Valuation and Assessment Reform Act (RPVARA).
The proposed pause aims to ease property-related costs for businesses, stimulate investments, and allow for a smoother transition to the updated property valuation framework.
Communications Undersecretary and Palace Press Officer Claire Castro disclosed that the President raised the proposal during the fourth Legislative-Executive Development Advisory Council (LEDAC) meeting at Malacañang on Thursday, August 6.
”Nagpanukala si Pangulong Ferdinand Marcos Jr. sa dalawang kapulungan sa LEDAC meeting nitong August 6, 2026 ng pansamantalang pagsuspinde ng pagpapatupad ng Real Property Valuation and Assessment Reform Act o Republic Act (RA) No. 12001 (RPVARA) upang maiwasan ang karagdagang mga gastos sa ari-arian para sa mga negosyo, suportahan ang mga pamumuhunan, at tiyakin ang isang dahan-dahan at makatwirang transisyon patungo sa bagong valuation system,” Castro said.
Signed into law in June 2024, RA 12001 establishes a standardized valuation model across the country by applying market value as the uniform base for property taxes and mandating regular schedule updates by local government units (LGUs).
The law does not automatically raise real property taxes, as LGUs retain control over setting local assessment levels and tax rates.
Additionally, RPVARA caps any real property tax increases at six percent for the first year following the approval of a new market value schedule.