Palace passes buck on taxing online sellers to Aquino admin
MANILA, Philippines — The previous administration initiated the taxing of online sellers and the present leadership is merely implementing the policy, Malacañang said Monday.
The Bureau of Internal Revenue (BIR) has required online sellers to register and to pay taxes, drawing flak from critics who think the policy is ill-timed because of the economic challenges brought about by the coronavirus pandemic.
Some lawmakers have urged the government to spare small entrepreneurs who are trying to make both ends meet and have called on the tax bureau to run after big-time tax evaders instead.
But presidential spokesman Harry Roque said taxing online sellers is not an idea of the Duterte administration.
"We understand that life is hard. But this policy is not new," Roque said at a press briefing.
"This policy to tax online sellers started during the time of Kim Henares, the BIR commissioner during the time of President (Benigno) Noynoy Aquino (III). We are just implementing the instruction and the law initiated by President Aquino," he added.
Roque went on to cite the Tax Reform for Acceleration and Inclusion (TRAIN) law, which exempts those earning an annual taxable income of P250,000 and below from paying personal income tax.
"What is new is it's only now that those who are earning up to P250,000 are paying zero income tax. That is because of the TRAIN that was passed as an administration-certified bill during the time of President Duterte," the Palace spokesman said.
'Tax POGOs instead'
Last Sunday, Senate Majority Leader Miguel Zubiri said the government should impose hefty taxes on Philippine Offshore Gaming Operators (POGO) instead of taxing online sellers who are trying to survive during the pandemic. Zubiri said harassing online sellers on their last means of income is "heartless to say the least."
Asked to react to Zubiri's proposal, Roque said: "Well, never say never."
"But for now, what the president wants is for them to pay their deficiency taxes before they are allowed to operate again," he added.
POGOs, which employ Chinese nationals, have been tied to illegal activities includng fraud, illegal drugs, trafficking and prostitution of Chinese women, tax evasion, kidnappings, and bribery. Duterte has defended the operations of POGOs, saying the government earns huge revenues from them
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