Digital service taxes are now expected to be imposed in the Philippines as part of the government's efforts to generate more revenues.
The generated income from DSTs will be used to settle the rising debts of the Asian country. This detail was confirmed by Philippine President Ferdinand Marcos Jr.
"Our tax system will be adjusted in order to catch up with the rapid development of the digital economy," said Marcos during his first SONA, which happened on Monday, July 27.
Digital Service Tax To Be Imposed in the Philippines
According to Bloomberg's latest report, the upcoming DST is expected to generate more than $208 million (11.7 billion pesos) in revenue by 2023.
Of course, Congress still needs to pass the digital service tax bill before the Philippine government can take advantage of it.
Once approved, the DST will help the Asian country settle its rising debts. Even before Marcos Jr. was elected as the new Philippine president, the digital service taxes were already suggested by Finance Secretary Benjamin E. Diokno.
Business World reported that Diokno wanted DSTs to be implemented by the Philippine government. He explained that those who can afford Netflix and other digital services are not poor, saying they should be taxed.
As of writing, around 12% VAT (value-added tax) on digital service providers is included in the proposed tax reform in the Philippines.
What Are Digital Services Included?
The House of Representatives provided the digital services affected by the upcoming DST, such as subscription services like Netflix, HBO, and other streaming services.
Online goods delivered via the internet are also expected to face digital service taxes, such as mobile apps, online marketplaces, software online licensing, webcasts, etc.
If you want to see further details about the upcoming DST in the Philippines, you can visit this link.
Previously, thousands of Netflix subscribers are now unsubscribing.
On the other hand, Elon Musk's lawyers claimed that the Twitter lawsuit is a rushed one.
For more news updates about digital service taxes and other internet-related topics, always keep your tabs open here at TechTimes.
Related Article : Canada's Industry Minister to Hold a Meeting with Rogers Telecommunications CEO Due to Effects of the Outage
This article is owned by TechTimes
Written by: Griffin Davis
