‘Digitax’ proposal will make it even harder for Filipinos: Makabayan bloc

MANILA – Some lawmakers in the House have complained to a committee there about a proposed tax on digital transactions.

According to the members of the Makabayan bloc, it will only be a burden to the people if it progresses and becomes full law.

“Regressive, anti-people, isang lazy na paraan para magbuwis sa mga mamamayan,”said Bayan Muna party-list Rep. Ferdinand Gaite.

“Sa pandemya, dagdag tax na naman ito imbes na ayuda sa ating pamahalaan,” said ACT-Teachers party-list Rep. France Castro.

“Walang puso ang administrasyong ito kung ganito ‘yung kind ng batas na ipapasa natin,” said Gabriela party-list Rep. Arlene Brosas.

According to the Kabataan party-list, the tax is especially heavy and almost all Filipinos have a pandemic and are poor.

“This only adds to the burden on consumers, especially during the pandemic, which has led to widespread unemployment, poverty and economic crisis,” the group said.

The group is also worried that the price of students’ learning materials may be affected, especially since online classes will be available at the upcoming entrance.

“With this bill, VAT will also be able to cover online even e-learning that is difficult for the majority of young people and their families to reach due to the lack of laptops, good internet, and expensive expenses to load, “they said.

House Deputy Minority Leader Carlos Isagani Zarate added that the poor families have been affected by the proposal.

“This proposed tax is another measure that hits the poor and middle class more than the rich and big corporations. If the government really wants to increase its coffers, it should embark on a progressive tax system that taxes the rich more rather than the poor, “said Zarate.

“This proposal is definitely anti-consumer and must be opposed, junked and buried,” he added.

Under the substitute bill approved by the House ways and means panel on Wednesday, the value added tax will be imposed on any individual or business that will have a digital or electronic in nature transaction.

If eventually enacted, it could possibly create an additional P10.66 billion in the coffers of the people, according to the chairman of the committee Albay Rep. Joey Salceda.