To reduce deficits and national debt accumulation, the Department of Finance (DOF) has suggested to the incoming administration of President-elect Ferdinand Marcos Jr. the taxation on cryptocurrencies and digital services.
In a meeting with the press, the DOF stated that the best option for Marcos is to raise taxes while also postponing tax exemptions to “secure the gains” from President Rodrigo Duterte’s outgoing administration, whose borrowings brought the government debt to a record high at Php12.68 trillion in March.
With a target 2023 implementation, the agency wants to impose a 12-percent VAT on digital services, including online advertising. Electronic betting will be taxed too at five percent on gross gaming revenues.
Social media influencers have also been suggested as possible sources of tax revenue. By 2024, the DOF wants taxes excised on cryptocurrencies and carbon emissions.
The proposed taxes from these digital services will help towards the DOF’s estimated Php142.5 billion in additional revenues annually.
For years, multiple proposals to tax online activities and digital services have been made by various agencies. In other countries, their governments have not only considered cryptocurrencies taxable but also recognized them as legal tender.
Source: Rappler