‘It may be unpopular but we need to do this,’ Zubiri says on taxing online services
(INQUIRER.net STOCK PHOTO)
This, as President Ferdinand “Bongbong” Marcos Jr. pitched in his first State of the Nation Address (Sona) on Monday the need to impose the value added tax (VAT) on digital service providers.
Zubiri noted that the new VAT on online services was mentioned in the Sona while Marcos was talking about the E-Commerce Law.
“I’d say, it may be unpopular but we need to do this,” he said on ANC’s “Headstart.”
Zubiri, however, pointed out that many other developed countries that have an existing E-Commerce Law are now collecting taxes from online services.
“So we have to plug (the leakage), as he said, plugging the tax leakages and part of this is the E-Commerce Law,” he said.
“So were going to look at, I’m coming up with a nice E-Commerce law that will not be abusive but at the same time gain revenue for government,” Zubiri said.
He agreed with Marcos that the government is losing billions of pesos as many Filipinos prefer to buy online now than go to malls due to the pandemic.
According to Marcos, the government can generate P11.7 billion from VAT on digital service providers.
“Our tax system will be adjusted, in order to catch up with the rapid development of the digital economy, including the imposition of VAT on digital service providers,” the President said during his first Sona Monday afternoon.
