PSA-6 warns: Consumers carry weight of Iloilo City’s RPT hike

By Rjay Zuriaga Castor

The 300% increase in real property tax (RPT) in Iloilo City will directly impact the prices of goods and services consumed by both residents and tourists, according to the Philippine Statistics Authority Western Visayas (PSA).

PSA-6 director Nelida Amolar said in a press conference on Aug. 15 that businesses are expected to pass on additional costs to consumers to offset higher tax payments.

“When the RPT increases, establishments often add extra charges to the prices of commodities or services,” she said.

Amolar explained that with higher taxes, businesses face shrinking profit margins and are compelled to make price adjustments to recover costs.

She noted that the impact is felt across wholesale and retail sectors, as well as service industries such as restaurants and cafes.

Gemma, an apartment owner near West Visayas State University (WVSU), said she raised her monthly rent from PHP 3,500 per room to PHP 4,000 this year, directly increasing tenants’ housing expenses.

Kian Llyod, a third-year WVSU student renting a boarding house in Jaro, said his monthly rent rose to PHP 2,500 this year from PHP 2,200 in 2022. He said the landlord cited a “maintenance fee” as the reason for the hike.

Meanwhile, a grocery store owner in La Paz renting space in a commercial building said she added PHP 2 to PHP 3 to the prices of items such as canned goods. While her rental fee has not increased, she said the adjustment was needed to cope with rising market costs.

PSA data showed that in July, the Housing, Water, Electricity, Gas and Other Fuels commodity group remained the top contributor to inflation in Western Visayas, with a 3.5% inflation rate and a 99% share.

Within this group, actual rentals for housing posted 5.3% inflation, while electricity registered 1.3% in July, rebounding from -7.7% in June.

Among provinces and highly urbanized cities in the region, Iloilo province’s inflation rose to 1.8% from 1.7%, Antique improved to -1.7% from -2.2%, and Iloilo City accelerated to 3.7% from 2.7%.

The PSA-6 noted that Iloilo City has logged the fastest headline inflation in the region since January 2025, with its July rate of 3.7% significantly higher than the 1.8% posted in July 2024.

Housing, Water, Electricity, Gas and Other Fuels accounted for 95.8% of the city’s inflation trend, largely driven by electricity prices.

For July 2025 alone, Iloilo City’s inflation was mainly pushed by the Housing, Water, Electricity, Gas and Other Fuels group with 7.8% inflation and a 52.6% share. Within this, electricity contributed 19.8% and rentals 4.9%.

Supervising Statistical Specialist Jerry Dolutan of PSA Iloilo explained that electricity prices are tracked in phases, with a time lag between consumption and their reflection in inflation data.

He added that while Iloilo City recorded the highest inflation rate, each province and highly urbanized city contributed differently to the overall regional inflation, based on a weighted average.

These weights are derived from the Family Income and Expenditure Survey, which reflects spending patterns and wealth distribution in each area.