The increase in the threshold for value-added tax on real estate products is expected to improve the chances of the middle-income market and start-up families to buy residential land, houses or condominium units.
The Bureau of Internal Revenue raised in January this year the VAT threshold on these real estate products.
Previously, properties amounting to P2.5 million and below enjoyed VAT-free transactions. Now, the VAT-free ceiling has been increased to P3.199 million.
Property developer DMCI Homes, in a statement, said this spelled great news for millions more Filipinos who were seeking to fulfill their lifelong dreams of owning their own homes or condominium units in the metropolis.
“We commend the government in its firm commitment to provide Filipinos easier and greater access to better housing options,” says Alfred Austria, president of DMCI Homes, the property development affiliate of contractor D.M. Consunji Inc.
“From the inception of DMCI Homes, our focus has always been on providing hardworking middle-class Filipinos with homes that exceed their expectations and provide exceptional value for their money,” Austria said.
DMCI Homes offers real estate projects that buck popular trends, such as those maximizing profit by offering increasingly smaller units and dwellings.