The Department of Human Settlements and Urban Development is weighing a joint policy study with the Department of Trade and Industry’s Board of Investments to determine whether economic housing can be classified as corporate income tax-exempt mass housing under Batas Pambansa Bilang 220.
Human Settlements Secretary Jose Ramon Aliling said the review seeks to put economic housing under a clearer, rules-based, and more predictable incentive regime, comparable to the tax perks already extended to socialized housing projects.
Aliling said the initiative supports the government’s push to widen access to affordable homes while streamlining regulations that affect priority sectors, particularly the working class and first-time homebuyers.
“We want an orderly system for economic housing. When rules are clear and implementation is fair, responses to housing needs are faster and private sector confidence improves,” Aliling said in Filipino.
To move the review forward, Aliling proposed forming a technical working group with the BOI to conduct assessments and draft policy options for inter-agency consideration.
He said the effort could accelerate housing development, improve coordination across agencies, and establish a more transparent and predictable incentive framework for projects compliant with BP 220.
“This is not just about taxes. It is about direction, trust in government, and collective action to meet the country’s affordable housing needs,” Aliling added.
The proposed study follows recent policy shifts in the sector. The Bureau of Internal Revenue issued Revenue Memorandum Order No. 048-2025, standardizing procedures for tax exemption of socialized and economic housing and streamlining real estate compliance.
Earlier, Human Settlements and the Department of Economic Planning and Development released Joint Memorandum Circular 2025-001, adjusting price ceilings for socialized housing under the Expanded Pambansang Pabahay para sa Pilipino program nationwide rollout.
