Groups protest 300% property tax hike in Iloilo City

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By Juliane Judilla

Progressive organizations and consumer groups rallied at Plazoleta Gay in Iloilo City on Tuesday, Sept. 2, to protest the proposed 300% real property tax (RPT) increase, calling it an undue burden on residents and consumers.

The Iloilo City government had proposed the RPT hike in 2024 to boost local revenue, but opponents argue it would markedly increase the cost of living.

“The RPT hike has resulted in two major consequences: (1) the increase in prices of goods and services, and (2) the closure of businesses,” said the Panay Consumers Alliance (PCA).

“As RPT payments grew, business owners were forced to raise prices, passing the burden onto consumers,” the PCA added.

The Philippine Statistics Authority–Region VI reported Iloilo City’s inflation at 3.7%, the highest in the region, citing July 2025 data.

The Institute of Contemporary Economics (ICE) linked the inflation spike primarily to the RPT increase.

ICE also noted that rising RPT has pushed up utility bills—water, electricity, fuel—as well as prices of essential goods.

Citing City Hall data, more than 519 small businesses—including eateries and retail shops offering affordable alternatives—closed in July alone, reducing low-cost options for consumers.

Students in boarding houses have faced rent hikes amid rising costs of food and transportation, intensifying pressure on families and wage earners.

“This tax increase is too much for many residents to bear; even with a 40% discount, it’s still insufficient,” said the PCA, criticizing stagnant wages and insufficient relief.

They also questioned the logic of imposing RPT hikes while major projects, such as Iloilo Central Market and Terminal Market, are under public-private partnerships, suggesting these could be alternate revenue sources.

“If the city claims income shortages, why lease key markets to SM Prime Holdings, when other revenue avenues exist?” the PCA asked.

Councilor Sheen Mabilog, a long-time critic of the tax hike, noted that the city’s net takeaway has grown to PHP 1.71 billion from PHP 1.45 billion last year, with a surplus exceeding PHP 577.33 million.

“Development means ensuring affordable living, accessible services, and thriving small businesses, not just infrastructure,” the PCA said, calling for a suspension and review of the RPT hike.

Mayor Raisa Treñas-Chu defended the increase, citing the devolution of national government functions to local government units, which left the city underprepared for service delivery under new responsibilities.

“Devolution happened suddenly and without preparation,” she said, explaining the fiscal pressure that prompted consideration of a phased RPT adjustment.

The Local Government Code of 1991 and subsequent rulings, including the 2018 Mandanas-Garcia ruling and Executive Order 138 (2021), expanded national-to-local devolution, placing new obligations on LGUs.

Treñas-Chu indicated that while a gradual implementation of future RPT hikes may be possible, there are significant factors that must first be reviewed.

The Panay Consumers Alliance insisted the policy should ensure that city progress does not come at the expense of residents’ livelihood and affordability.