By REIN TARINAY
As the country continues to face economic difficulties in the time of pandemic, online platforms have become increasingly useful for those who work from home while online selling has become an alternative way of earning for many Filipinos.
Recently, the House committee on ways and means has approved a bill that will impose value-added tax (VAT) on online transactions, thereby amending the National Internal Revenue Code of 1997.
According to the Department of Finance, the proposed tax measure could raise over P9 billion in government funds.
Netizens, however, are frustrated.
In a statement, the Computer Professionals Union said, “This is just an additional burden to the already struggling majority, when we are already in the middle of a pandemic that our government should be protecting us from and assisting us with. A lot of us have already lost jobs, businesses, families, and friends to this pandemic because of the inadequate response and choices our leaders made and continue to make still.”
The group maintained that there is no need to impose more taxes “when this government is not yet even spending our present taxes and loans properly.” It cited the recent P15-billion scandal involving PhilHealth.
More taxes, less accountability?
“House panel approves 12% VAT on digital service providers such as Netflix and Lazada.”
i don’t mind having digital services taxed if our taxes are being used properly but that’s clearly not the case ?
— Yana Mangahas (@yanamangahas) July 29, 2020
In case ur not yet aware, bukod sa Netflix and Lazada gusto ring patawan ng 12% VAT yung mga social media transactions (like yung sa Facebook) and other digital services ? pic.twitter.com/sjJwqwgYE4
— mayka #SaveLumadSchools (@maykamaykaba)<ahref=”https://twitter.com/maykamaykaba/status/1288445220137230336?ref_src=twsrc%5Etfw”>July 29, 2020
IT’S ALL FUN & SHOPPING UNTIL PINATUNGAN NILA NG 12% VAT TANGINA. SINGILIN NIYO YUNG POGO. <ahref=”https://t.co/YteTthjDe4″>https://t.co/YteTthjDe4
— mark geronimo (@markgeronimo_) July 29, 2020
While other countries busy encouraging and supporting their people out of this pandemic. Here comes the politicians in the Philippines busy adding-up the burden to its people.
12% VAT on digital service providers such as Netflix and Lazada. Why not collect taxes from POGO?
— Brrrrrrrrtt Brrrrtttt?? (@SirRencee) July 29, 2020
12% VAT? Are you going to increase our tax for the sake of paying the debt of 9 trillion that we haven’t even manifested kasi nasa bulsa na ng mga politiko? I mean, 9 trillion for what? Asan yung mass testing? Jobs for Filipinos? Proper healthcare system? Where did it go?
— ?? (@agathaletiscia)<ahref=”https://twitter.com/agathaletiscia/status/1288333865099042816?ref_src=twsrc%5Etfw”>July 29, 2020
BREAKING: House panel approves 12% VAT on digital service providers such as Netflix and Lazada.
Sige putangina niyo. Lagyan niyo ng tax lahat.
— Ted Pylon (@TedPylon) July 29, 2020
Folks, the 12% VAT isn’t just on Netflix, Lazada, etc. Pati po online trainings, e-learning facilities, webinars, payment facilities, conduits, so on will be under 12% VAT. Instead of pushing for online and contactless payments, mas gigipitin ang tao.
— Alen Clyde (@alenclyde) July 29, 2020
Here is the list of online services that will be affected by the 12-percent VAT:
- online licensing of software, updates, and add-ons
- website filters and firewalls
- mobile applications, video games, and online games
- webcast and webinars
- provision of digital content such as music, files, images, text and information
- advertisement platform such as provision of online advertising space on intangible media platform
- online platform such as electronic marketplaces or networks for the sale, display, and comparison of prices of trade products for services
- search engine services
- social networks
- database and hosting such as website hosting
- online data warehousing
- file sharing and Cloud storage services
- Internet-based telecommunication
- online training such as provision of distance teaching, e-learning, online courses and webinars, online newspapers, and journal subscription
- payment processing services
Proponents seem to ignore or have forgotten the fact that the country acquired P9 trillion in loans, the PhilHealth scandal is still unresolved and POGO establishments remain unaccounted for. (Bulatlat.com)
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