NOV 11, 2015

NR # 4015B

Tax incentives for institutions engaged in

socialized housing projects pushed
A lawmaker has filed a bill, which seeks to exempt all forms of socialized housing programs and
projects from the payment of capital gains tax.
Rep. Winston Castelo (2nd District, Quezon City) said the proposal under House Bill 6122 is in
line with the policy of the State to encourage more participation in undertaking comprehensive and
continuing urban development and housing program as well as access to land and housing for the
underprivileged and homeless citizens.
Under the bill, exemption of payment of capital gains tax is applicable to all institutions, whether
national governments Key Shelter Agencies or local government units (LGUs), private sector, nongovernment organizations or civil society organizations, peoples or cooperative organizations engaged or
who shall engage in any form of socialized housing projects and programs.
The bill states that any disposition by way of sale or donation of lands for socialized housing
programs and projects shall be exempt from the payment of capital gains tax or donors tax, as the case
may be.
Castelo said socialized housing program is the most appropriate solution that resolves
underprivileged and homeless families need for security of tenure and shelter.
Housing is a basic human needa matter of concern since it directly and significantly affects
public health, safety, the environment and in sum, the general welfare, he said.
Castelo, chairman of the Committee on Metro Manila Development and vice chair of the
Committee on Housing and Urban Development, said aside from the regular fund for social housing
granted to the national governments Key Shelter Agencies, the President has provided P10B for high
density housing program of the informal settler families living in waterways and danger zones in Metro
Manila.
He further said that the private sector and cause-oriented institutions and other organizations are
now engaged in multi-stakeholders arrangement for socialized housing programs and projects intended
for the underprivileged and homeless Filipino citizens.
Castelo said through their socialized housing programs and projects, these multi-stakeholders help
uplift the conditions of the less fortunate and the homeless by making available decent housing at
affordable cost as well as reduce urban dysfunctions, among others.
In recognition of this multi-stakeholders arrangement of cooperation and to encourage more
private sector participants to undertake socialized housing projects and programs, it is necessary and
desirable to provide them tax incentives such as exemption from the payment of capital tax gains,
Castelo said.
The bill has been referred to the House Committee on Housing and Urban Development chaired
by Rep. Alfredo B. Benitez (3rd District, Negros Occidental). (30) mvip