In a bid to raise the government’s overall revenue, President Ferdinand “Bongbong” Marcos Jr. is looking to impose a tax on digital transactions, anticipating a Php11.7 billion of added income in 2023.
Via his initial State of the Nation Address (SONA), the newly-elected president spoke of reform in the present tax system aimed at catching up with the “rapid developments of the digital economy,” which would encompass the imposition of value-added tax (VAT) on digital service providers like Netflix.
Acting as the president’s de facto chief economic manager, Finance Secretary Benjamin Diokno has been an active advocate of the proper taxation of streaming service payments as well as other digital transactions to augment the government’s tax revenue.
- How to book an appointment for driver’s license using LTO Online
- LIST: Authorized “wang-wang” sirens and blinkers users in PH
Per Diokno, the proposal was in the works “on the basis of fairness,” citing how digital transactions have the possibility of evading imposed taxes relative to transactions conducted via over-the-counter.
To give way for easy compliance with the proposed new taxation, Marcos aims to simplify the entire process of paying the tax.