Tax on plastics, online transactions gets new push

219
Photo from: Inquirer.Net

By Inquirer.Net

The government is determined to boost its revenues from the boom in digital or online transactions with an estimated yearly value-added tax (VAT) collection of as much as P13.2 billion from them and P1 billion more from single-use plastic products, which are a major pollutant, according to Finance Secretary Benjamin Diokno.

Aside from the fresh push for the two measures, the new administration is not planning any new or higher taxes in the short term, Diokno said during a press conference on Friday with other members of the economic team of President Ferdinand Marcos Jr.

“If you buy a product from a regular store, you pay tax; I think we should also pay tax on online sales,” he said, adding that it was only “fair” to levy the 12-percent VAT on such purchases.

This tax would be imposed “sooner than later” upon the passage of a bill to tax online providers of products and services, including video and audio streamers, shopping sites, and advertisers on social media.

The bill authored by Albay Rep. Joey Salceda was passed by the House of Representatives during the 18th Congress, and it can be reintroduced and then tackled by the Senate in the 19th Congress.

READ full story HERE.