'Sooner than later': DOF eyes tax on single-use plastics, online purchases | Inquirer News

‘Sooner than later’: DOF eyes tax on single-use plastics, online purchases

NETFLIX AND OTHER STREAMING SERVICE SUBSCRIPTIONS MAY ALSO BE TAXED
/ 06:53 PM July 08, 2022
BSP Gov Benjamin Diokno

Finance Secretary Benjamin Diokno. INQUIRER PHOTO/JOAN BONDOC

MANILA, Philippines — The Department of Finance (DOF) is mulling taxing single-use plastics and online purchases, including subscriptions to streaming apps like Netflix.

Finance Secretary Benjamin Diokno on Friday said these are among the tax reforms being eyed by his office to generate more government income.

ADVERTISEMENT

“In addition, we’re also thinking of some possible tax on single-use plastics as this is part of our commitment to climate change,” Diokno said in a press briefing.

“And of course, in response to recent developments, on the basis of fairness, we intend to tax online purchases because if you buy a product from a regular store, you pay tax. And I think you should also pay a tax if it’s online,” he added.

FEATURED STORIES

During the administration of former President Rodrigo Duterte, there was a previous push to impose a P20 excise tax on single-use plastic, estimated to raise P1 billion per year.

READ: DENR wants single-use plastics taxed per piece

Meanwhile, the Bureau of Internal Revenue (BIR) planned on developing a dedicated unit to track digital sales transactions and capture the correct taxes due from these goods and services.

Asked when the public can expect the tax on online purchases, Diokno said: “I think you need legislation for that, or maybe not, so you can expect it to be sooner than later.”

“So you better take advantage of your (tax-free) Netflix subscription,” he added.

Tax reform packages

Aside from these, Diokno said he would pursue the remaining two packages of the Duterte administration’s Comprehensive Tax Reform Program (CTRP).

“There are two remaining packages out of that tax reform program, and that’s Package 3 and 4. We intend to pursue packages 3 and 4,” Diokno said.

ADVERTISEMENT

“They are supposed to be revenue-neutral but they will significantly improve our simplify the tax system, so we are pushing for those,” he added.

According to Diokno, his office will “really focus on improving tax administration” so that the country can rely on a “much better tax system.”

RELATED STORY:

DOF orders BIR to track, tax online sales

EDV/abc
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Benjamin Diokno, Department of Finance, Netflix, online transactions, single-use plastics, tax reforms
For feedback, complaints, or inquiries, contact us.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.