LGUs urged to collect 5% tax on idle lands

MANILA, Philippines - Finance Secretary Cesar Purisima is urging local government units (LGUs) to start collecting a five-percent tax on idle lands, in a bid to improve agricultural productivity especially in Class 4, 5, and 6 municipalities.

In remarks delivered during the signing of the Land Bank of the Philippines funding of the Department of Agriculture’s Food Supply Chain Program, Purisima said there is a need to utilize the country’s idle lands to increase food production.

He noted that several tracts of land remain idle as owners merely acquire properties for speculation and capital appreciation. He said LGUs should start implementing the five percent tax on idle lands to spur agricultural activity.

At the same time, he said LGUs would be able to raise much needed revenues instead of constantly relying on their Internal Revenue Allotment (IRA) from the National Government.

Purisima pointed out that LGUs could easily raise funds if they focus on making lands in their areas more productive.

Most of the agricultural lands, Purisima noted, are in Class 4, 5 and 6 municipalities which are always in need of funds.

Class 4 municipalities are those with an annual income of P20 million or more but less than P30 million; a Class 5 municipality has an annual income of P10 million or more but less than P20 million, while a Class 6 municipality has an annual income of below P10 million.