Sarabia warns 80% RPT cut would hurt city revenue

By Rjay Zuriaga Castor

Councilor Rex Marcus Sarabia, chair of the Committee on Appropriations, warned that Councilor Sheen Mabilog’s proposed 80% reduction in real property tax (RPT) would have a “catastrophic” effect on the city’s finances.

“Potentially, if the proposal were passed, it would have a catastrophic impact on the city government and the residents,” he said in an interview.

“This is not a matter that you should take lightly.”

Sarabia emphasized that RPT, along with the National Tax Allotment, is a major source of local revenue.

These fund essential programs and services, including the Special Education Fund, Quick Response Fund, social services, economic development, infrastructure projects, and general government functions.

In 2025, RPT collections are projected to reach about PHP1.056 billion, up 14.83% from the previous year.

The increase is attributed to updated property valuations and tax adjustments.

While Mabilog cited the negative effects of the RPT hike and claimed her rollback proposal would address them, Sarabia said he was unconvinced due to the absence of citations from competent authorities, agencies, or independent studies.

“That is just hearsay, and there is no credibility because there is no scientific basis,” he said.

Sarabia criticized Mabilog’s position as “emotional allegations” lacking data-driven justification.

He called the proposal a “plain, blanket reduction” with no clear rationale.

“We cannot deal with emotions here in the city council,” he added.

“We are dealing with the welfare of the people.”

Sarabia also noted that the council had already approved a 40% RPT discount for 2024 to 2026 and adjusted the city’s budgets accordingly, anticipating potential legal challenges.

He rejected Mabilog’s argument to let the proposal advance to second reading, claiming her persistence was merely an attempt to fulfill a campaign promise.

“It’s a presumption that whatever you promised the voters, it is also expected that you study it,” he said.

“We do not make proposals that are half-baked or were just easily made.”

Team Sulong Gugma, Mabilog’s party, strongly opposed the RPT increase during the 2025 midterm elections and vowed to reduce it if elected.