Manila: The government is reviewing the potential classification of economic housing as corporate income tax-exempt mass housing under Batas Pambansa Bilang 220. This initiative is being spearheaded by the Department of Human Settlements and Urban Development (DHSUD) in partnership with the Department of Trade and Industry-Board of Investments (DTI-BOI).
According to Philippines News Agency, DHSUD Secretary Jose Ramon Aliling stated on Monday that the proposed review aims to establish a clearer and more predictable tax incentive framework for economic housing developments, akin to the system already in place for socialized housing. Aliling noted that aligning incentives for economic housing is crucial for the government's efforts to expand access to affordable homes and simplify regulations impacting priority sectors, especially the working class.
Aliling emphasized the need for a clear and orderly system for economic housing, suggesting that clear policies and fair implementation would expedite the response to housing needs and bolster the trust of the private sector. He further mentioned that this initiative aligns with President Ferdinand R. Marcos Jr.'s directive for a whole-of-government approach to promoting dignified, safe, and affordable housing for Filipino families.
The policy exploration is in response to the Department of Finance-Bureau of Internal Revenue's issuance of Revenue Memorandum Order 48-2025, which streamlined tax exemption processes for socialized and economic housing projects. Additionally, the DHSUD, along with the Department of Economy, Planning, and Development, released Joint Memorandum Circular 2025-001, adjusting the price ceiling for socialized housing under the Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.
Aliling highlighted that these efforts aim to sustain vibrancy in the housing sector and improve policies for the benefit of stakeholders, particularly homebuyers. To advance the proposal, he recommended creating a technical working group to conduct evaluations and craft policy recommendations for the DHSUD and DTI-BOI.
He expressed confidence that this initiative would accelerate housing development, enhance interagency coordination, and establish a transparent and consistent incentive framework for projects compliant with Batas Pambansa Bilang 220. Aliling clarified that the move goes beyond a tax issue, focusing on ensuring clear direction, building trust in government, and mobilizing collective action to address the country's need for affordable housing.
