Mabilog’s 80 percent RPT cut proposal dies on first reading

By Rjay Zuriaga Castor

Councilor Sheen Marie Mabilog proposed an ordinance imposing an 80% reduction in real property tax, but it failed to advance past the first reading after no councilor seconded the motion.

The proposal, listed under other matters during the City Council’s regular session on Wednesday, effectively died on the floor without reaching the committee level.

This marked the first time in the 12th City Council — composed mostly of allies of Iloilo City Mayor Raisa Treñas — that a proposed ordinance received no referral or further discussion.

Mabilog’s proposal, her first filed ordinance, sought to implement only 20% of the approved RPT increase, excluding the additional ad valorem tax on idle lands.

She cited the city’s stable fiscal position, including PHP5 billion in deposits with the Development Bank of the Philippines, a PHP2 billion borrowing capacity for development projects, and increased National Tax Allocation and surplus funds for 2025.

She stressed that the city’s financial strength and surplus funds would enable it to sustain services and programs, even with reduced RPT collections.

“The Commission on Audit recommendation, and although the assessor’s decision to update the city’s fair market values is just and reasonable, it is the government’s duty to ensure any increase in the levy of taxes and fees must be equitable, safeguarding the economic welfare of its citizens,” the ordinance stated.

Mabilog admitted she did not expect that none of her colleagues would second the proposal, but said she respects the rights and decisions of her fellow councilors.

“This is the City Council’s accountability to the public. What matters to me is that I made a promise to address the issue of RPT because our taxpayers and the business community have been reeling from it,” she said.

Mabilog’s proposal runs counter to Mayor Treñas’ pending ordinance, which seeks to extend the existing 40% RPT discount from 2024 to 2028. The mayor’s proposal is currently under committee review.

Treñas filed the measure in response to appeals from taxpayers and business groups over the 300% RPT increase.

While a 40% discount is in place, Mabilog argued the remaining 60% is still a heavy burden for many.

She said she plans to elevate her proposal to the Committee on Ways and Means, chaired by ex-officio member Maria Irene Ong.

“These are just challenges. I will continue to fulfill my mandate and responsibility to the residents,” she said.

‘WAR’ NOT YET LOST

Majority Floor Leader Councilor Rex Marcus Sarabia said Mabilog still has a chance to raise her proposal in upcoming committee hearings, particularly during deliberations on the mayor’s RPT discount extension.

“Actually, it’s better to discuss that in committee, since we have the city treasurer and other stakeholders there. She can better express her advocacy. Although she may have lost the proposal today, she hasn’t lost the war yet,” he said.

Sarabia, who chairs the Committee on Appropriations, said he was not convinced by Mabilog’s proposal.

“I know the ins and outs of the city’s budget and the programs being implemented,” he said.

“I do not understand that the push for the reduction of 80%,  it would f*ck up our budget. To be candid, our budget will be chaotic and the programs pushed by the mayor would also be compromised,” he stressed.

He argued that slashing RPT collections could weaken the city government’s ability to deliver services and spur economic growth.

Despite his reservations, Sarabia said he is open to reconsidering Mabilog’s proposal if there is strong public support to reduce RPT.