The Bureau of Internal Revenue (BIR) is being urged by the United Filipino Consumers and Commuters (UFCC) to reconsider its plan to impose a 1% creditable withholding tax on online sellers.
According to the UFCC, the proposal is a “heavy blow to the ordinary Filipino people who will suffer the effects of the new tax.”
UFCC President RJ Javellana said that introducing a new tax that will “ultimately hurt the poor” is the last thing the Philippines need as it recovers from the crippling effects of the pandemic.
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The group also fears that this new 1% withholding tax is just the “beginning of more taxes to be imposed upon the already suffering public,” since there are already reports of a plan from the Department of Finance (DOF) to roll out new and higher taxes next year.
BIR is planning to impose a 1% creditable withholding tax on one-half of the gross remittances of platform providers to their merchants or partner sellers.
The UFCC is also asking President Ferdinand Marcos Jr., to be “on the side of the ordinary Filipinos in our crusade against new anti-poor tax measures.”
They have also called on online selling platforms to stand behind their merchants and partner sellers.
Source: GMA News Online