Here we go again. The news where online sellers would soon be taxed immediately spurred a sea of protests much like the ones for Black Lives Matter. Online sales have indeed increased in the wake of a strict quarantine placed over Metro Manila for more than two months. Most of them are sellers of food and essential products. Even grocery items were made available by supermarkets with the help of a lucrative courier service industry that likewise ballooned. Of course, the businessmen cried foul. The quarantine rendered their respective businesses almost dormant, so the much-needed revenues were a welcome development. Now that the businesses are starting to come back to life they are greeted by a rude awakening in the form of new taxes.
Because of the backlash, the BIR stated all they wanted was to remind online sellers to register their businesses and not necessarily tax them right away. Okay. Then presidential spokesman Harry Roque came out saying only those earning more than P200,000 per year would be taxed, but online sellers still need to register with the BIR. Then the Department of Finance stated they are really keen on registering and taxing all online sellers. Of course, once registered the BIR can easily monitor them.
We seem to keep on hearing the administration leveling new taxes on the people left and right. The TRAIN Law was enacted which only recently implemented the third tranche which again increased the price of gasoline and other products. Only the spread of the coronavirus stemmed the price of gasoline which saw its lowest price in years but is now making a comeback. We really never got to enjoy the low prices of gasoline since there was nowhere to go. The same virus gave birth to the proliferation of online sellers and now the government wants a piece of the pie again. A lawmaker has even suggested online music and video streaming should likewise be taxed. Really. Watch out, Netflix and Spotify.
Some lawmakers criticized the move, asking if the billions in unpaid taxes by POGOs have been collected, aside from all the headaches they brought into the country. The BIR should update the country if they have started paying. The government is obviously looking for money after spending heavily on the Bayanihan To Heal As One Law. If the government wants the economy to start recovering, why level new taxes to the chagrin of businesses? Surely these additional expenses will only be passed on to consumers who are already hard-pressed for money. As Sen. Gatchalian said, "ill-timed, insensitive".
Agree.