For first-time homebuyer Bohol Solon wants tax pay incentives

TAGBILARAN CITY, Philippines – Representative Arthur Yap (3rd district, Bohol) has filed a bill granting first-time homebuyers a tax credit of 10 percent of the amortization cost and a tax deduction to housing stakeholders that grant such discount.

Yap said the bill, which already passed the House appropriations committee, was designed “to alleviate the shelter condition and welfare of a majority of the Filipino families” and “to encourage greater private sector participation and investment in housing development and finance.”

The measure was intended to make decent housing affordable to low- and middle-income groups, while promoting housing as a component to economic growth and development.

Yap, together with Ako Bicol party-list Reps. Christopher Co and Rodel Batocabe, said the bill would make the cost of buying a house and lot, especially for first-time buyers, cheaper by reducing the financing cost and granting tax incentives for both buyers and sellers or developers.

First-time homebuyers will be entitled to a non-transferable tax credit of 10 percent of the total amortization “actually paid for the year preceding the availment of the tax incentive, and for the whole term of the loan from the date of purchase until full payment of the housing loan.”

Yap said the proposed tax credit will also be extended to buyers of a house and lot or condominium unit, before the law takes effect, and those who actually live in the property as principal place of residence but who has not yet fully paid the loan amortization.

The proposed law would also grant a tax deduction from the gross income of land owners, real estate dealers and developers, contractors and sellers of construction materials who give a minimum of five percent to first-time homebuyers, he said.

The congressman further said the measure mandates the Housing and Urban Development Coordinating Council to serve as the clearing house in the issuance of a certification for a first-time homebuyer and to conduct a continuing information drive about the provisions of the law, when enacted.

Fines and penalty will be imposed to violators of the law, including cancellation or revocation of business permit, permit to operate, franchise and other privileges granted them, Yap added.