'Real property tax remains Kalinga's biggest revenue problem' — Prov’l Treasurer Basitao urges stronger collection drive

Tabuk City, Kalinga – As Kalinga's first-quarter revenue collections fell short of the province's annual target, Provincial Treasurer Ma. Theresa Basitao called on municipal and city treasurers to intensify efforts to improve real property tax (RPT) collection, describing it as one of the province's most pressing and long-standing revenue concerns.

Speaking during the Third Quarter Treasurers' Meeting on July 10, Basitao emphasized the need for stronger tax administration, sustained public information campaigns, and closer coordination among local treasury offices to boost local revenue generation.

Data presented during the meeting showed that Kalinga's municipalities and Tabuk City generated a combined P135.4 million in actual collections against the province's P301.42-million annual target. The collections came from real property tax, business tax, fees and charges, and economic enterprises.

Basitao noted that while collections from other local revenue sources remain manageable, real property tax continues to lag despite continuous tax information and education campaigns.

"Wala tayong problema sa other categories like business, ang problema talaga natin is real property tax. Daytoy ti haan nga ma-address'an. Uray nu kasanu ti tax information dissemination tayo, ket awan talaga," she said.

She added that while the implementation of the updated Schedule of Market Values is expected to increase property values, it will also result in higher collection targets and could lead to an increase in tax delinquency if collection efforts are not strengthened.

"...baka ngumato tun ngem ngumato tun metlang ti target tayo ta idiay metlang ayan ti valuation. Ngumato ti value, because of the schedule of market value. So we are looking forward nga ngumato metlang ti target tayo, ngumato metlang ti asset value na dagiti properties. Ngumato tu metlang ti delinquency tayo, expected yan," she added.

Basitao encouraged municipal and city treasurers to identify the root causes of low RPT compliance and work together in developing practical strategies to improve collections, stressing that better real property tax administration is essential to increasing local revenues and sustaining development programs.

Why Real Property Tax Matters to Kalinga's Development

Real property tax is considered one of the most stable and dependable sources of locally generated income for local government units. According to the Department of Finance and the Bureau of Local Government Finance, strengthening property tax collection enables LGUs to become more financially sustainable, allowing them to fund essential public services, infrastructure projects, health programs, education, disaster preparedness, and other development initiatives without relying heavily on national government transfers.

For a developing province like Kalinga, improving real property tax collection can provide additional resources for the construction and maintenance of roads, bridges, schools, health facilities, water systems, and other community projects that directly benefit residents. Strong local revenue generation also enhances the province's capacity to respond to emergencies and invest in long-term economic growth and public welfare.