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Location: Makati City, Metro Manila, Philippines

Wednesday, July 04, 2007

Government owns all land in the country

The Philippines has a total land area of 30 million hectares. Of this, 53 percent is public forest land (PFL) and 47 percent is alienable and disposable (A&D) land. The PFL, under the Constitution, cannot be alienated by the state or sold to the private sector, so it’s all government-owned. Now, of the A&D land, a big portion of this is owned by the government, perhaps a million hectares or more – military camps, police camps, special economic zones (SEZs), campuses of state universities and colleges (SUCs), various land properties by by government corporations (GOCCs & GFIs), national government agencies, and local government units (LGUs). Overall, I think the government, both national and local, own at least 60-65 percent of the country’s total land area.

So government is the largest land-owner in the country, right?
Wrong! Government owns ALL lands in the country!
I think it's in the constitution too, the "Regalian doctrine" that "all lands belong to the state".

Consider this: All owners of private lands, whether they own only a 50 sq.meter lot in the barrio, or a 2,000 sq.m lot in Forbes Park, or a 20,000 hectares of pineapple or sugar plantation, all of them must pay "rent" to the government, the LGUs in particular, in the form of real property tax (RPT) and other estates taxes. You don't pay your RPT on time, especially in big cities like Metro Manila cities and municipalities, the penalties are high. You forget to pay for several years, you will be surprised that the accumulated RPT + penalties are almost equivalent to the market value of your land! If you cannot "arrange" this and you don't have enough money, government will confiscate the land. And one can forget private property. At the end of the day, it’s all government property.

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