Sen. Risa Hontiveros. FILE PHOTO / Joseph Vidal of Senate PRIB
MANILA, Philippines — Senator Risa Hontiveros called for a Senate inquiry into the taxation of online businesses in the middle of the COVID-19 pandemic and urged the Bureau of Internal Revenue (BIR) to defer the implementation of its order until December 31, 2020.
Hontiveros pushed for the inquiry through Senate Resolution No. 453 filed Monday which urged the BIR to suspend its memorandum directing online sellers to register their business activities and settle their taxes not later than July 31.
“It is best for everybody’s interests if the BIR suspends the implementation of the memo until December 31, 2020, while government agencies review and craft better policy guidelines on how online entrepreneurs should register or pay taxes,” Hontiveros said Tuesday in a statement.
Earlier, the senator urged BIR to withdraw, review and rewrite the said memorandum which was criticized as “ill-timed” and “insensitive.”
To protect the public against COVID-19, Hontiveros urged the BIR to establish a digital platform where the public may register.
“Magkaroon muna ng digital platform for registration. Requiring people to congregate at the BIR’s offices likewise exposes them to the health risks associated with COVID-19 and might also lead to further spreading the disease and prolonging the pandemic,” she said.
(There should be a digital platform for registration. Requiring people to congregate at the BIR’s offices likewise exposes them to the health risks associated with COVID-19 and might also lead to further spreading the disease and prolonging the pandemic.)
Further, Hontiveros lamented the different statements issued by government agencies that confuse online sellers in complying with the BIR order to register which costs P2,260.
“The DTI [Department of Trade and Industry] has claimed that online sellers are exempt from tax registration, but the BIR said before the House of Representatives that all online sellers — no matter how big or small their income — must register. Nalilito na ang publiko, at hindi biro ito dahil ang registration sa BIR ay umaabot sa P2,260 na masyadong mahal para sa maliliit na online sellers,” she said.
(The DTI has claimed that online sellers are exempt from tax registration, but the BIR said before the House of Representatives that all online sellers — no matter how big or small their income — must register. The public is confused and registration is not a joke since it costs P2,260 which may be expensive for small online sellers.)
So long as the revenue policies that are “clear, comprehensive and un-oppressive,” Hontiveros said online sellers are willing to comply.
She also reiterated that it should be “responsive to the difficulties faced by many Filipinos during this pandemic,” considering that some ventured into online selling after their livelihoods were affected.
With the current number of unemployment, Hontiveros said the government should give protection to Filipinos who are trying to provide for their families via online selling.
“There is insufficient official data vis-à-vis the informal online economy to guide policy, thus making it imperative that the relevant government agencies provide an update on the situation for Congress,” Hontiveros said.