Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

659

H. B. No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

The Philippines has a total land area of 30 million hectares, 47% or around 14.12 million
hectares of which are classified alienable and disposable. Had these lands been utilized
efficiently, agricultural productivity and food security would not be a critical problem as it is
today,

It is lamentable to note that for a country with so much land resources, it lags behind
those with less. Filipinos, it seems, have taken for granted what classical economists are wont
to say, the “original gift of nature.” A trip down the country lanes would give us glimpses of large
tracts of privately-owned productive agricultural lands that have remained idle and undeveloped
over the years,

Several reasons have been cited to explain the continuing non-cultivation and non-
Utilization of these lands but two obvious factors are land speculation and land conversion. Land
owners would rather have their lands remain idle than invest on inputs to the.land such as
fertilizers, agricultural implements, new crop varieties, and irrigation, knowing that in time, its
market value would definitely doubled. Likewise they would rather seek the conversion of their
lands from agricultural to residential or commercial than engage in farming and similar activities
wherein they face higher risks of loss to weather conditions.

This Bill seeks to increase the ceiling tax on idle lands from five percent (5%) to ten
percent (10%) to give Local Goverment Units (LGUs) more flexibility in its imposition, The
current maximum of five percent (5%) has not proven to be a deterrent against the non-
utilization of agricultural lands for productive purposes neither as a stimulant for LGUs to
maximize its revenue potentials.

There are moves to nationalize the imposition of the idle land tax but at this point when
LGUs are still leaming the ropes of governance and self-sufficiency, it would be imprudent to
take away the power to impose this tax away from them. After all, what is the guarantee that


implementation and collection of the said tax at the national level would be more effective and

efficient than at the local level?
The five percent (5%) idle tax has been in existence since the 1970s but to date, it
remains, well, “idle”. If we were to make the idle land tax more dynamic, let us raised it by all

means but let us not deprive the LGUs the chance to partake in the “banquet”

In view of the foregoing, early approval of this bill is eamestly sought.

“SONNY” M. ANGARA
Represehtative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

H.B.No,__659

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
INCREASING THE TAX ON IDLE LANDS, AMENDING FOR THE PURPOSE
SECTION 236 OF R. A. NO. 7160, OTHERWISE KNOWN AS THE LOCAL
GOVERNMENT CODE OF 1991

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. — Section 236 of Republic Act No. 7160 is hereby amended as follows:

“Sec. 236. Additional Ad Valorem Tax on Idle Lands. - A province or city, of a
‘municipality within the Metropolitan Manila, may levy an annual tax on idle lands at the
rate not exceeding [five] TEN percent [(5%)] (10%) of the assessed value of the property

which shall be in addition to the basic real property tax.”

SEC. 2. All other acts, decrees, executive orders, rules and regulations, or part or parts
thereof, inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 3. This Act shall take effect upon its publication in two (2) newspapers of general

circulation.

Approved,