Philippine senators urge govt don’t tax online sellers

A sales officer promotes an app-based loan service to potential customers during an expo in Jakarta. Alternative lending companies and platforms across Asia are scrambling to raise funds and stave off bankruptcy as they face a wave of bad loans. (JP/Dhoni Setiawan). Sketched by the Pan Pacific Agency.

MANILA, Jun 18, 2020, The Manila Times. Two senators appealed to the government to give leeway to online sellers instead of punishing them by imposing taxes, The Manila Times reported.

Sen. Ana Theresia Hontiveros urged the Bureau of Internal Revenue (BIR) to withdraw and review its plan to impose tax on online sellers.

The senator said the BIR must “rewrite” its memorandum circular since it required small online sellers to spend about P4,000 to register to avoid penalties.

She urged the bureau to declare a moratorium on the registration of online sellers.

“Online selling gives a huge potential in providing income to those who lost their jobs. And because it is [done] online and there is limited physical contact, it is safer compared to traditional jobs,” Hontiveros said in Filipino.

The BIR required all persons doing business and earning income through the use of any electronic platforms and media to register their businesses.

Hontiveros recalled that the Department of Trade and Industry earlier said small online sellers, or those who earn P250,000 and below annually, are exempted from registering their business with the BIR.

If the circular is enforced, online sellers will have to shell out at least P2,260 to register.

“Many Filipinos are turning to online selling to make ends meet. We should not punish them with confusing guidelines and hefty fees,” Hontiveros said.

Sen. Emmanuel Joel Villanueva agreed that instead of cracking the whip on online sellers, the government should help them.

He said most online sellers earn just enough to provide for their basic needs.

“Payak lang po ang konsiderasyon na nasa isip ng ating mga manggagawa na nakikipagsapalaran ngayon bilang mga online seller. Kailangan po nilang kumita para may pagkain sa kanilang hapag at matustusan ang iba pang pangangailangan ng kanilang pamilya tulad ng bayarin sa upa, kuryente, tubig, at iba pa (Online sellers are only asking for simple consideration. They want to earn so they could have food on their table and to provide for the other needs of their families such as for payment of their electricity, water and others),” the senator pointed out.

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