Binay, Henares lauded for passage of new BIR revenue regulation

Vice-President Jejomar C. Binay and BIR Commissioner Kim Jacinto-Henares. INQUIRER FILE PHOTOS

MANILA, Philippines – Vice-President Jejomar C. Binay, chairman of the Housing and Urban Development Coordinating Council (HUDCC), was recognized by real estate groups recently for his role in the passage of the Bureau of Internal Revenue’s Revenue Regulation 16-2011 which took effect on Jan. 1, 2012.

Chamber of Real Estate & Builders’ Associations Inc. (CREBA), headed by its national president Charlie Gorayeb, led the recognition and appreciation event held February 9 at Hotel Intercontinental, along with other groups Subdivision and Housing Developers’ Association Inc., the National Real Estate Association Inc, and the Organization of Socialized Housing Developers in the Philippines Inc.

Also honored was BIR Commissioner Kim Jacinto-Henares but was not present at the event.

The BIR’s Revenue Regulation 16-2011 exempts buyers of residential lots priced at P1,919,500 and below, and buyers of house and lot packages priced at P3,199,200 below from paying 12 percent value added tax. The previous price limits to avail of the exemption and which were adjusted in 2005 were set at P1.5 million and P2.5 million respectively.

“With the increase in the cap, we expect to generate more housing acquisitions as houses would be made more affordable without the payment of the VAT,” Binay said in his speech.

He also acknowledged suppliers of housing materials, through the Federation of Philippine Industries, for agreeing to have a round table discussion with HUDCC every six months “to come up with strategies on how to drive the construction costs down, and make housing more affordable and sustainable.”

Meanwhile, Gorayeb said the additional relief from taxes would be a “major benefit” for buyers and would “positively impact” government’s revenue efforts through increased housing construction costs between the years 2004 and 2010 as bases.

“The increase in cap will make housing more affordable since the VAT that will be passed on to buyers will now be eliminated, and hence, generate more opportunities for housing acquisition,” he said.