JV Ejercito asks DOF: Why punish digital consumers with taxes?
July 29, 2022
Senator Joseph Victor "JV" Ejercito
on Tuesday said the Department on Finance (DOF) should focus on improving the
collection of existing taxes instead of "punishing" digital users
with new taxes.
This was in response to recent proposals by
economic managers to levy new taxes on online services and digital streaming
platforms such as Netflix and Spotify.
"The world is moving fast towards a
digital economy, especially because of the pandemic, so why are we punishing
digital consumers?" he said in a statement.
"We should provide incentives to
businesses that will accelerate digitalization. Taxing consumers of the digital
economy may not be a wise move in that regard," he added.
The lawmaker asked the DOF to present its tax
collection and revenue generation strategies before levying new taxes on
consumers.
"I would like to see the detailed
proposal of the Department of Finance first. I would like to see a more
comprehensive strategy towards fiscal responsibility and improved tax
collection and revenue generation," Ejercito said.
"We can’t just raise taxes. We need to
plug the holes first in terms of tax collection," he added.
Ejercito said the proposed tax is
"counter-intuitive" and detrimental to the country's efforts towards
achieving a more digital economy.
"Initially, I think the tax on single-use
plastics makes sense because it will incentivize establishments and our people
towards a more eco-friendly behavior, but taxing online purchases, including
streaming apps, seems counter-intuitive if our goal is to strengthen e-commerce
so we can align our economy towards digitalization," he said.
