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Tuesday, October 4, 2022

Netizens express dismay with proposed 12% VAT on online purchases


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?



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)



The post Netizens express dismay with proposed 12% VAT on online purchases appeared first on Bulatlat.

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