Added tax on digital transactions, other economic measures top House agenda
MANILA, Philippines — The House of Representatives will fast track measures lobbied for by the finance department aimed at reviving the economy badly hit by the coronavirus pandemic, including a proposal to impose a 12% tax on digital transactions.
House Majority Leader Martin Romualdez said Tuesday that he has been instructed by House Speaker Lord Allan Velasco to prioritize once the House session resumes next Monday 11 bills endorsed by Finance Secretary Carlos Dominguez.
“These legislative imperatives, according to Secretary Dominguez, are needed to help ensure that the economy recovers quickly from the corona-induced crisis in a strong, sustainable, and resilient manner,” Romualdez said in a statement.
Among these measures endorsed by Dominguez is the proposal to impose value added tax on digital transactions, including on-demand video streaming sites and other digital services.
Additional taxes tend to curb demand, which can negatively impact a consumption-driven economy like the Philippines.
But one of the proponents of the measure, Rep. Joey Salceda (Albay), has said that the government stands to gain as much as P29.1 billion in additional revenues, which can be used to help the country cope with the coronavirus crisis.
Another measure included which will be prioritized by the House is the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery bill, which aims to remove the pressure of bad debts on banks so that they can lend more to businesses.
Other priority measures which are being tackled in plenary now are the Bureau of Fire Protection Modernization Program and the Fiscal Mining Regime.
Meanwhile, other measures identified by the House leadership as priority legislation which are still in the committee level are the:
- Military and Uniformed Personnel Services Separation, Retirement, and Pension bill
- Armed Forces of the Philippines Modernization bill
- Coconut Farmers Trust Fund bill
- Department of Water Resources and Water Regulatory Commission bill
- Warehouse Receipts bill
- National Disease Prevention and Management Authority bill
- National Land Use bill
Romualdez said he has “no doubt” that the House will be able to pass these measures before next year, when 2022 elections become the top of mind of politicians.
“We are committed in helping our economic managers set in place the bold reforms that the Duterte administration has started to keep the economy strong and resilient,” Romualdez said.
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