Housing VAT exemption cap hike, PEZA moratorium lift gain attention before SONA

Property analysts said that raising the value-added tax (VAT) exemption ceiling for housing and proceeding with plans to lift the Philippine Economic Zone Authority (PEZA) moratorium in Metro Manila could help shield homebuyers from elevated mortgage rates and boost demand for office space, according to BusinessWorld.

The proposed VAT exemption cap increase would lower the effective cost of housing for buyers, providing relief amid high interest rates. Meanwhile, lifting the PEZA moratorium is expected to attract more business process outsourcing (BPO) firms and other locators, stimulating demand for office spaces in the capital region.

These measures are gaining attention ahead of President Ferdinand R. Marcos, Jr.'s State of the Nation Address (SONA) on Monday, where further economic policies are anticipated.