AmCham supports land value capture provisions in pending land use law

THE American Chamber of Commerce of the Philippines (AmCham) said it asked the Senate to incorporate land value capture (LVC) provisions in the proposed National Land Use Act (NLUA), saying that land use practices must be made more investment-driven.

In a statement on Wednesday, the chamber welcomed the passage of House Bill (HB) No. 8466 or the proposed NLUA. 

It noted that the measure would help “support more orderly infrastructure and economic development.”

AmCham proposed that LVC provisions would facilitate the adoption of innovative infrastructure financing.

LVC recovers the increase in land value generated by public investments or regulatory changes such as rezoning to fund public services. By taxing or charging fees on the “unearned” appreciation, governments gain the capacity to pay for infrastructure, while ensuring developers and landowners share windfall gains.

“By allowing government to share in the increases in land value generated by public investment, it can strengthen fiscal sustainability without overreliance on borrowing or additional taxes,” AmCham said.

The LVC mechanism must have clear regulations that ensure transparency and non-distortion to land and property markets, it added.

The NLUA should also include a funding provision to support LGU support training, systems upgrading, institutional strengthening, and technical assistance.

AmCham also called for the need to ensure an “investment-sensitive” framework that ensures certainty for projects under development or approval.

The framework must also protect active and pipeline investments while establishing predictable timelines for projects, it added.

HB 8466 seeks to establish the National Land Use Commission under the Office of the President. It also proposes the creation of a 30-year National Physical Framework Plan to be reviewed every 10 years.

The proposed NLUA is a priority measure of the Legislative-Executive Development Advisory Council. — Beatriz Marie D. Cruz