Taxing digital transactions, simpler tax compliance among reforms eyed by Marcos

enablePagination: false
maxItemsPerPage: 10
maxPaginationLinks: 10

Metro Manila (CNN Philippines, July 25) — Filipinos could soon pay more for their online transactions with President Ferdinand “Bongbong” Marcos Jr. seeking to tax them, as the government seeks additional revenues amid the COVID-19 health crisis.

“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. The initial revenue impact will be around ₱11.7 billion in 2023 alone,” Marcos said at the start of his first State of the Nation Address on Monday.

RELATED: Govt. eyeing tax on digital transactions, single-use plastics 

The chief executive also pitched simpler tax compliance procedures, which will promote ease of paying taxes, and reforms against possible undervaluation and misdeclaration of imported goods.

Other reforms also made it to Marcos’ priority measures. These are the Valuation Reform Bill, which establishes real property values and valuation standards nationwide, and the Passive Income and Financial Intermediary Taxation Act (PIFITA) which improves the taxation of capital income and financial services.

These two are the last packages under the Comprehensive Tax Reform Program, which was launched during the administration of former President Rodrigo Duterte.

Albay 2nd District Representative Joey Salceda committed to taking up the measures Marcos mentioned in his SONA related to taxation.

“These are very clear directions from the President, who is head of the governing coalition that the House majority belongs to,” said Salceda, who is poised to lead the House tax panel.

Finance Secretary Benjamin Diokno has pushed for improving tax administration to generate more revenues, with the Marcos government inheriting a mountain of debt from the Duterte administration amid the pandemic.

The country’s total borrowings have reached ₱12.5 trillion as of end-May.