Yes. The Catholic Church of Palo must pay real property taxes.

As provided in Article VI, Section 28 (3) of the 1987 Constitution, charitable institutions , churches and
parsonages or convents appurtenant thereto, mosques, non-profit cemeteries, and all lands, buildings
and improvements which is actually, directly and exclusively used for religious, charitable or education
purposes shall be exempt from taxation.

In this case, tax exemption cannot be granted to Church of Palo as it is being leased to Metrobank,
which is a commercial bank and said transaction cannot be considered as actually, directly, and
exclusively for religious purposes.

Therefore, property tax shall be paid to the Local Government Unit of Palo. ,