Consumer group asks BIR to reconsider plan to tax online sellers
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MANILA, Philippines – A consumer group is urging the Bureau of Internal Revenue (BIR) to reconsider its plan to impose a 1% creditable withholding tax on one-half of gross remittances of online platform providers to their partner sellers.
The United Filipino Consumers and Commuters (UFCC) said in a statement that the BIR’s proposal would be a heavy blow to the ordinary income earners, who have yet to recover from the effects of the pandemic.
UFCC president Rodolfo Javellana Jr. said the new policy of the BIR will directly affect small entrepreneurs who are just recently bouncing back from years of minimal to zero income due to a series of hard lockdowns in 2020 and 2021.
“Hindi pa po tayo tuluyang nakakabangon mula sa pagkakasadlak ng ekonomiya dulot ng pandemya. Patuloy na naghihirap ang mga kababayan natin dahil sa sunod-sunod na pagtaas ng presyo ng mga pangunahing bilihin, gasolina, kuryente, at iba pa,” Javellana, Jr. said in a statement.
(Our economy has not yet recovered fully caused by the pandemic. Our fellow countrymen still continue to feel the effects of rising prices of commodities, gas, electricity and others.)
“At a time when the country has yet to recover from the crippling effects of the COVID-19 pandemic fully, introducing new taxes that will ultimately hurt the poor is the last thing the country needs right now,” said Javellana.
“We are concerned that the plan to have the new 1% withholding tax will be the beginning of more taxes to be imposed upon the already suffering public. It has already been reported that the Department of Finance (DOF) plans to introduce new and higher taxes in 2024,” he added.
“We appeal to President [Ferdinand] Marcos [Jr.] to be on the side of the ordinary Filipinos in our crusade against new anti-poor tax measures. Naniniwala po kaming tutuparin ninyo ang inyong pangako na hindi kayo pabor sa pagpataw ng mga panibagong buwis na magpapahirap sa mamamayan at sa halip ay tututukan ng inyong administrasyon ang paglaban sa graft and corruption kasabay ng pagsulong ng efficient revenue collection,” he added.
The group is also optimistic that Malacañang will intervene and stop the BIR from implementing this planned policy. “Sana po pakinggan kayo ng DOF at ang BIR [I hope the Department of Finance and BIR will heed you on this],” he said.
The UFCC head said his group hopes that the BIR will not push through with the planned 1% withholding tax. He said at stake here is the welfare of hardworking Filipinos making a living as riders, freelancers and online sellers, as well as Micro, Small, and Medium Enterprises (MSMEs), which are considered the backbone of the Philippine economy that provides livelihood to thousands of workers.
“Kaakibat po natin sa pagbangon ang sektor na ito. Sa halip na karagdagang buwis, suporta mula sa pamahalaan ang kanilang kailangan. Sa bandang huli, it will be the buying public who will bear the brunt of these new taxes,” said Javellana.
The UFCC calls on the online selling and services platform providers to be the voice of their partner sellers and merchants in their representation to the BIR, which should conduct a public hearing on this matter to have a better judgment. The consumers, who patronize your platforms, are also counting on you.
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