SUMMARY
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A House committee’s approval of a bill imposing a 12% tax on digital services on Wednesday, July 29, did not sit well with its primary stakeholder — the online community.
The unnumbered bill seeks to take advantage of the surge in online transactions during the coronavirus pandemic – as some parts of the country were put under quarantine and most Filipinos have been staying at home.
“12% VAT” landed on Twitter’s top trends in the Philippines, with over 4,000 tweets as of writing.
Critics of the bill said the move is untimely, given that consumers and businesses rely on online platforms for transactions.
The bill is expected to remedy the lower tax collections due to the pandemic.
Online discussions also touched on the government’s spending of COVID-19 response fund. This was after senators sought an audit of government spending under the Bayanihan to Heal as One Act. (READ: Hontiveros calls for special audit of gov’t spending on COVID-19 response)
Need more funds? Run after POGOs, the wealthy
Netizens have never forgotten about Philippine offshore gaming operators (POGOs) and their huge tax liabilities to the government.
In June, the Bureau of Internal Revenue was under fire after it reminded online sellers to register and declare their past transactions by July 31. (READ: Senators hit BIR: ‘Ang luwag sa POGO, ang lupit sa Pilipino’)
Twitter users said the move is another class issue, for the 12% tax will largely affect the middle class and the marginalized.
House committee on ways and means chair Albay 2nd District Representative Joey Salceda said in an earlier interview that movie and streaming platforms are currently not taxed.
Read more sentiments about this proposal below.
What are your thoughts on this? Do you think online services should be taxed soon? Let us know in the replies! — Rappler.com
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