Taxing the digital world in the PHL

It is more fun criticizing

House bill No 1745 amending amending Section 105 of the NIRC authoreddby Rep Joey Salceda

A tax expert was interviewed in the TV this morining  (PM) in Cambridge USA regarding taxing the players in the digital space.  All ready there is howling from the mini players doing their on on line selling at various digital plat form

1.  Who are to be taxed?   The soc media, the local players on line selling, their suppliers.

      Truly BIR sees this as revenue source because:    1.  There is marked shift especially from bricks and

      mortar firm to on line sellers:   big ones and resellers .  Bricks and mortars firms:    malls, restaurants

     small stores etc lost their business to on line digital sellers.       2.  The pandemic saw shifts to on llne

     modesl   1.   deliveries   2.   on line  banking -  payments and even investments    3.  deliveries

     4.  on line medical services and more

    And yet they are not taxed.  Most especially the big firms based in USA   They are taxed in USA, 

    get most of their revenues here, but do not pay any tax.  Like in the last election, billions were

    spent locally by the candidates, but they did not pay taxes here.  

    It is fair and just for the digital platforms

2.  We should separate frist time sellers or the SMEs and not group them with #1  Thus the books of accounts and regular reporting with BIR should be dispensed with and simple taxation should be

implemented.    One sector of the cabinet spouses growth of SMEs but a move to tax up and coming

business hould be discouraged

3.  In the past we have passed laws that were unique like taxing cosmetic surgery however none was

ever collected.  BIR may not have the resources nor the data to effect the collection.  Can BIR collect this new taxes

Candidates woo the C, D, E voters, pledge more social welfare ang aid

It is more fun criticizing

Rizal Philippines

As is the usual wooing strategy, the Presidential candidates  have promised ayuda:   one of them a P200 Billion ayuda, more free education, lower priced goods.  That is the easiest way to say but funding those promises is another story.  The additional taxes would be another matter and the voters to be affected would surely be alienated.   One even proposed of selling govt properties to fund the welfare The CDE, Socio economic class compromise 70% of the total population  (about 49 million) and hence it is better to appeal to the sense of free and entitlement of the many of the populace

Some of the promises if done would make the country a socialist one, and /or the country would resort to massive foreign and local borrowing (We are criticizing the current administration for trillion additional debt.  

It is very usual that candidates (even the Democrats) to profess balanced budget, lower taxes, but as soon as they get elected run afoul with reality and then increase taxes, or water down their promises.