Details about the Proposed Digital Service Tax to Help Drop State Debts
DIGITAL SERVICE TAX – Some people and groups have different reactions to the proposal to implement a tax on services provided online.
Nowadays, many people and businesses have made use of advanced technology in expanding their reach. Through the different online platforms, they can offer their services and products to a bigger number of people and even to those who are not living in the same city or region as them.
On the other end of the said marketing strategy, a lot of people also prefer digital services saying that many of the offers save them money, time, and energy. One of these is when they buy stuff like groceries or other products online. They can shop in the comfort of their home, at the office, or anywhere they are and the items can be delivered right to their doorsteps.
Many individuals now deal with busy schedules and they love the presence of digital services which makes their lives easier. The wide variety of options provided online also hooks more and more people. Also, many of these services are free from additional taxes.
However, there has been an ongoing call for the implementation of a digital service tax. Based on a report on ABS-CBN News, Finance Secretary Benjamin Diokno recently expressed his push and support on the implementation of tax on services offered online.
According to Diokno, it can help the government amid the high debts that it incurred from the fight against the COVID-19 pandemic. However, based on the report, the proposal to implement a digital service tax gains different reactions from people and groups.
Some retailers and shop vendors expressed their side that adding digital service tax on the products that they are selling online will increase the prices and might affect their means of earning. On the side of the Philippine Retailers Association, they support the proposal for “fairness” between offline and online retailers.
As of this writing, there are still no final decision as to the proposal. More updates may be posted soon.
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