Filtered By: Money

Marcos: P11.7B gov’t revenue seen from taxing digital service providers

President Ferdinand “Bongbong” Marcos Jr. is seeking to impose tax on digital transactions which could generate P11.7 billion next year.

“Our tax system will be adjusted in order to catch up with the rapid developments of the digital economy, including the imposition of value-added tax on digital service providers,” Marcos said in his first State of the Nation Address (SONA) on Monday.

“The initial revenue impact will be around P11.7 billion in 2023 alone,” he added.

The President’s chief economic manager, Finance Secretary Benjamin Diokno, has been vocal proposing the imposition of “correct” taxes on streaming service payments and other digital transactions as a way for the government to earn additional revenues. 

Diokno said the proposal to tax digital services is being made “on the basis of fairness” as digital transactions had the tendency to “evade” imposing taxes unlike purchases made over-the-counter

Meanwhile, Marcos said tax compliance procedures will be simplified to promote ease of paying taxes.

“We will pursue measures to determine possible undervaluation or trade mis-invoicing of imported goods,” he said.

“Through information and communications technology, the Bureau of Customs will promote streamline processes,” he added. — RSJ, GMA News