Imposing taxes on digital economy ill-timed during COVID-19 pandemic —Imee Marcos

The proposed taxation of digital transactions such as online selling amid the COVID-19 pandemic would be ill-timed as it could nip several economic opportunities in the bud, according to Senator Imee Marcos on Monday.

She described the measure as a double-edged sword which could increase government collection on taxes but may also impede sustainable growth of digital businesses.

“It’s a bit hasty to slap on new taxes in the midst of an economic crisis when people are looking for subsidies, discounts, and longer installment plans due to reduced incomes or jobs lost. Businesses will simply pass on the added tax costs to the consumers, most of whom are poor or middle-class,” the chairperson of the Senate Committee on Economic Affairs said in a statement.

She underscored that a lot of digital start-ups, such as online sari-sari stores and groceries, could help boost the Philippine economy amid the health crisis.

Digital products and services are becoming necessities rather than luxuries now as e-commerce, online learning and telemedicine are beginning to be part of the new normal, according to Marcos.

“New taxes at this time can discourage broader public use of digital tools and services. We must first be allowed to get familiar and participate in the world’s new ways of getting things done to stimulate business and job creation,” she added.

Two weeks ago, Finance Secretary Carlos Dominguez III said the government is looking at proposals to impose taxes on online sales and streaming services.

House Committee on Ways and Means chair Joey Salceda recently filed a measure seeking to impose such taxes which he said will generate for the government as much as P29.1 billion yearly in incremental revenues. —KG, GMA News