[ Malaya.com.ph ] July 22, 2009
BY IRMA ISIP
Government has restored the tax exempt privilege of the Pag-IBIG Fund, freeing up additional funds for housing.
Jaime Fabiaña, chief executive officer of the Home Development Mutual Fund or the Pag-IBIG Fund, said President Arroyo yesterday signed a law that amends the charter of the Fund.
The law restores Pag-IBIG’s tax exempt privileges similar to those given to pension funds Government Service and Insurance System and the Social Security System.
From 2001 to 2008 alone, Pag-IBIG paid P13.59 billion in taxes.
Republic Act 9679, otherwise known as the Home Development Mutual Fund Law of 2009, amends Presidential Decree 1752 which created the institution in 1980, and integrates all other laws relating to the agency.
Vice President Noli de Castro, chairman of the Housing and Urban Development Coordinating Council and HDMF board, the new law will translate into more funds for Pag-IBIG’s shelter financing programs.
"Our housing loan disbursements have been growing consistently for the last eight years, and this new law will allow us to meet the growing demand for affordable housing finance, while still ensuring the long-term stability of the Fund and the consistent delivery of benefits to its members," De Castro said.
Pag-IBIG released P37.3 billion in end-user housing loans in 2008 against P3.82 billion in 2001.
As of May this year, its housing loan disbursement grew by 34 percent, indicating a strong demand despite the financial crunch.
The law also grants the HDMF board of trustees the authority to set the members’ contribution rate, among other features.
Fabiana said this is very timely given the higher loan packages under its housing finance program.
From P500,000 in 2001, the Fund has raised the highest loan amount to P3 million.
"It gets increasingly difficult, and will ultimately be unfeasible to sustain that kind program under the current contribution rate of only P100 per member and an equal employer’s share," Fabiana said.
President Arroyo signed the law during the inauguration of a housing project of the National Housing Authority and the Office of the President at the New Bilibid Prison compound in Muntinlupa City.
The housing project will benefit the employees of the OP, the Department of Environment and Natural Resources and the Department of Justice-Bureau of Correction.
___________________________________________________________________________________
