MANILA, Philippines — Cavite Governor Jonvic Remulla on Monday appealed to the national government to consider delaying the taxation for online sellers who are just trying to make a living instead of relying on the government’s aid.
In making his appeal, the governor pointed out that owners of small businesses are “barely making a profit” during the period of community quarantine that was imposed to curb the spread of the coronavirus disease.
“I am asking the national government to PLEASE consider delaying the taxation of online trading or selling. This is for the benefit of small business entrepreneurs,” Remulla said in a Facebook post.
“Rather than impose taxes, we should create programs, encourage and inspire people to shift to the new digital economy. I think innovation and progress is what the country truly needs,” he added.
The official also cited a Social Weather Stations’s survey in July which showed that the adult unemployment in the country rose to 45.5 percent, or a 28-point increase from the 17.1 percent in December 2019, setting a record-high from the 34.4 percent in March 2012.
He pointed out that online selling is one of the effective ways to cope with the pandemic, adding that even teachers and other professionals who lost their jobs during the crisis have engaged in this business.
In Silang, Cavite, where Remulla lives, owners of shops of ornamental plants have also taken their businesses online, according to the governor.
“There is no reason not to support those who are crafty, resourceful, street smart and adaptive to the modern world. Please, let us not burden them. Rather, let us work together to make their numbers grow. Let us boost their spirits so that someday, they may be big enough to pay bigger taxes,” he said.
“Let us give comfort to those who are striving to survive. They are not even asking for a dole out. These entrepreneurs are not depending on the SAP. They are just trying to make a living in order to provide for their families. Is it that difficult to make the lives of the people we serve easier?” he added.
Remulla also took a swipe at corruption issues especially those hounding the Philippine Health Insurance Corporation, saying that “now is the time to prove our campaign promises.”
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“If we are successful in this endeavor, then maybe paying taxes will be worth it for everyone,” he said.
“Let us give our small scale business owners a break from the burden of taxes at this very difficult time and fix the issues of corruption first,” he added.
In an interview in June, Bureau of Internal Revenue Deputy Commissioner for Operations Arnel Guballa said that online sellers earning less than P250,000 a year are exempted from paying income tax.
Trade Secretary Ramon Lopez also earlier clarified that online sellers operating ““intermittently or irregularly” as well as those selling homemade items as a hobby are not required to register their businesses.