DHSUD mulls income tax-exempt housing

THE Department of Human Settlements and Urban Development (DHSUD) said it is studying a proposal to classify economic housing as corporate income tax-exempt mass housing under Batas Pambansa Blg. 220. The feasibility study, it added, would be done with the Department of Trade and Industry-Bureau of Investments. Housing Secretary Jose Ramon Aliling said the proposed initiative aims to establish a clearer, rules-based and more predictable tax incentive framework for economic housing comparable to that of socialized housing. The proposal, Aliling noted, aligns with the government’s broader objective of expanding access to affordable housing while simplifying regulatory requirements affecting priority sectors, particularly the working class. ”We seek a clear and well-structured system for economic housing, because when policies are clear and fairly enforced, responses to housing needs become faster and private sector confidence is strengthened,” he said. ”This is in line with the directive of President Marcos Jr. for a whole-of-government approach in promoting decent, safe and affordable housing and dignified living for our people,” Aliling added. He cited the recent issuance of Revenue Memorandum Order 048-2025 by the Department of Finance-Bureau of Internal Revenue, which introduced a more uniform and streamlined tax exemption process for socialized and economic housing projects. Joint Memorandum Circular 2025-001, issued by DHSUD, and Department of Economy, Planning and Development, he said, adjusted the price ceiling for socialized housing under the Expanded Pambansang Pabahay Para sa Pilipino Program. ”All of these are meant to sustain vibrancy in the housing sector and to speed up, clean up and improve policies for the benefit of our stakeholders, especially home buyers,” Aliling said. He proposed the creation of a technical working group that will conduct technical assessments and draft policy recommendations for concerned agencies. ”This is not just about taxes, but about clear direction, trust in government and collective action to address the need for affordable housing,” he added.