Bong Revilla Files Resolution Number 410

Philippine Senator Bong Revilla filed Senate Resolution Number 410 which aims to impose taxes on digital businesses that has been raking up billions of pesos from the Filipino market.

The filing of the resolution came day after the Albay Representative Joey Salceda proposed to impose government tax to these international online businesses, the Albay congressman is the chairman of the ways and means committee of the House of Representatives.
Bong Revilla Resolution 410
Photo: newsbytes.ph

The congressman is pushing for taxation laws on digital services aimed specifically to video and music streaming apps subscriptions, advertisements on social media sites, online sales platforms. 

On a media interview, Salceda said that this new tax measures will be called "Netflix tax," "Facebook ads tax," and "Lazada tax,".

According to estimate, around 120 billion pesos will be earned by the Philippine government once this measure be implemented.

Senator Revilla stated that this digital taxes were already being implemented on variuos technologically-advanced countries such as Norway, Australia, Japan, France, South Korea, United Kingdom, Singapore, and Malaysia. The senator said that these countries have their own version of this dicital service tax laws.

"We need to embrace the digital revolution of our time, and to comprehensively review and update our existing tax laws regarding digital economy," - the lawmaker at the upper house said.

According to statista.com through theur research department, the country will have an estimated 296 thousands active subscriber on video streaming site netflix.

The senator said that while the local online businesses have been already paying up taxes on the government, the multinational corporations were not covered by our taxation laws. This companies which are far more technological advance has a wide range of coverage were able to evade our taxation laws because of the lack of laws to control them.

"We need to embrace the digital revolution of our time, and to comprehensively review and update our existing tax laws regarding digital economy," Revilla said.

Upon researching, we have found that Lazada - a company owned by Alibaba has been paying taxes on the Philippine government. We at the anyare.com cannot however find any information if Google and Netflix are paying taxes on the local government. Though we are aware that Google has their own remote office here in the country, but we cannot verify whether all Google ads spent by the Filipino people have local tax or not, same goes to the Netflix subscriptions.

If this new tax law be come into a reality, will the prices on these platforms also be affected? Will these businesses pass the tax by our government to the end users?