DTI: Online barter trade is illegal, violates tax laws

Online selling during the months-long community quarantines has become so prevalent that even barter-trading has found its way to the internet.

But the Department of Trade and Industry (DTI) reminded the public on Tuesday that barter-trading is illegal as it violates tax laws.

During the Laging Handa public briefing, Trade Secretary Ramon Lopez said that while barter-trading is allowed in “very limited” areas in Mindanao, it is not legal in the rest of the country.

The Cabinet official said barter-trading - where goods and services are exchanged without using money - is allowed in Sulu and Tawi-Tawi pursuant to an executive order issued by the President, particularly Executive Order No. 64 signed in 2018.

“Ang barter trade ho ay allowed po iyan doon po sa mga limited places sa Mindanao dahil po sa nature po ng … iyong mga lugar doon na kailangan ma-improve iyong livelihood, iyong mga hanapbuhay po lalo na sa tabi ng dagat,” the Trade chief said.

“Pero po sa ibang lugar ay hindi po allowed iyong barter trade. At saka kailangan ho, ano pa, iyong regular transaction tayo diyan at saka dapat ho ay may tax na binabayaran,” Lopez added.

The Trade chief said the government will implement a crackdown on online barter trading.

“Bawal nga po so – at saka nalalabag nila iyong tax law diyan – anyway, ipapahanap po natin iyon dahil illegal po iyong activity,” Lopez said.

“So diyan po, umaaksiyon naman po iyong ating team, composite team ng DTI at ng PNP (Philippine National Police), NBI (National Bureau of Investigation),” he said.

Lopez, however, said the DTI has not yet received complaints concerning barter-trading online.

“So marami na rin ho tayong natanggap na complaints but not on barter,” he said.

“But in general dito po sa mga online from 1,000 I think, in January of this year to 10,000, ang ibig sabihin ang mga complaints. Ganoon din kadami kasi tumalon ang transaksiyon sa online selling lalo na iyong quarantine, the height of the quarantine period,” he said. -MDM, GMA News