Cost of taxing small online sellers could be higher than collection —Gatchalian

The cost of going after online sellers to make them pay taxes amid the COVID-19 pandemic could be higher than what will be collected, Senator Sherwin Gatchalian said on Monday.

During an interview on Dobol B sa News TV, Gatchalian maintained that online micro, small, and medium enterprises must be spared from this duty.

"Sa aking computation kung hahabulin natin itong maliliit, paparehistro natin, papa-audit natin baka mas malaki pa ang ang gastos ng gobyerno at administrative kaysa sa buwis na makokolekta natin. 'Yun po ang nakikita ho namin," he said.

"Halos isang milyon na ho ang ating MSMEs at lahat ho to ay talagang online na po ang pamamaraan dahil kung sa mall, hindi naman pwedeng pumunta doon. Kaya marami nang nagbebenta online, maganda para 'yan sa akin," he added.

Gatchalian said taxation is all about timing.

"Kung 'yan ay uusbong at lalawak, pagdating ho ng panahon pwede na ho natin silang buwisan pero sa ngayon na umuusbong pa lang tapos papatayin na natin baka wala nang mag-transition to online," he said.

The Bureau of Internal Revenue (BIR) recently issued a memorandum circular notifying "all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means," that they should register to ensure that they are tax compliant.

Presidential spokesperson Harry Roque, explained that online sellers with net income less than P250,000 a year do not need to pay taxes.

On Monday, Roque said the policy of requiring online sellers to register with the BIR and pay taxes started during the Aquino administration.

Senate Majority Leader Juan Miguel Zubiri, meanwhile, said the government should look for other revenue streams.

"Maghanap po tayo ng industriya na kaya po i-share 'yung burden, ika nga. Burden-sharing 'yan eh, makatulong sa pagbabayad nitong pagbibigay ng income sa gobyerno," he said in a separate interview on Dobol B sa News TV.

He added that big-time online sellers can bear the brunt of the planned taxation in the industry, but not the small ones.

"Puwede naman sigurong gumawa ng batas para sa malalaking online services katulad ng Lazada, tulad ng Shopee, malalaki po iyan. Sa mga maliliit ay hindi na po sila dapat lagyan ng buwis pa," he said.

Moreover, Senator Joel Villanueva said the government should instead help these small-time online entrepreneurs to nurture their businesses.

“Kung tutulungan natin sila sa pamamagitan ng pagbibigay ng training, hindi na po aasa ang ating mga kababayan sa ayuda. Mababawasan ang alalahanin ng gobyerno at mas madali nitong matutugunan ang iba pang aspeto ng problemang dulot ng pandemiko,” he said.

“In ordinary times, we agree that online sellers should immediately register with the BIR and pay the appropriate taxes. But right now, we have a pandemic and everyone is just trying to survive," he added.

Senator Francis Pangilinan also said the government should not pick on these sellers in the virtual space amid the pandemic.

"Bago mag-isip ang gobyerno kung ano ang makukuha nito sa mga maliliit na nagnenegosyo gaya ng mga online seller, isipin sana muna nito kung ano’ng tulong na ang naibigay nito sa kanila," he said.

"Mali ang timing. Patong-patong na ang hirap na dinaranas ng mga tao, huwag nang dagdagan pa," he added.

Pangilinan reiterated that the government should go after smugglers and big tax evaders such as Philippine Offshore Gaming Operators (POGOs).

Meanwhile, a group of  online gaming service providers asserted on Monday that its members have dutifully paid their obligations to continue operations in the Philippines. —Dona Magsino/LDF, GMA News