Incoming Philippines finance chief eyes taxes on digital services

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno is eyeing the imposition of taxes on digital transactions and streaming services, such as Netflix and Spotify, when he assumes his position as Finance Secretary under the new Marcos administration. Diokno said that most digital transactions are not being taxed properly and it is unfair for those buying from bricks-and-mortar stores. A 12% value-added tax (VAT) on digital service providers is part of the tax reforms proposed by outgoing Finance Secretary Carlos G. Dominguez III as part of a fiscal consolidation plan. The VAT would cover online advertisement services, digital services, and supply of other electronic and online services. Diokno is not keen on raising taxes, but they will focus on tax administration and digitalization. He added that the approach to tax collections is to use technology to improve tax collections.