THE Bureau of Internal Revenue’s (BIR) plan to impose withholding tax on online sellers will promote fairness for all sellers, Finance Secretary Benjamin Diokno said.
He argued that tax imposed on regular stores should also be imposed to online sellers.
“It’s not only increasing tax revenue. It’s a matter of fairness. Kasi kung bibili ka sa regular store, magbabayad ka ng tax. Dito hindi ka magbabayad, unfair ‘yon,” Diokno explained.
“People have to perceive that the tax system is fair so they will be willing to pay,” he added.
The BIR is looking to amend existing revenue regulation to include income payments by online platform providers.
But more than the possible increase in tax revenue, Diokno said that it must be established how feasible it would be to collect tax on these items.
“Another factor when you consider tax system is how much money can you really collect? May mga tax na maganda lang pakinggan, but is it administratively easy to collect? ‘Yung cost per $100, how much will it cost you to collect $100 dollars?” Diokno said.
“I think you have to look also at the impact of tax on the economy. Hindi lang ‘yung single-minded na raise revenue. That’s not your only objective eh kasi fairness is also an objective. Simplicity is an objective. Kasi pwede ka makapag-impose ng tax pero napaka-complicated so ‘di ka rin makakakolekta, di ba?” Diokno said. (ABS-CBN News)
