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.
“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.
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.
“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.”
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