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SONA 2022: Marcos Pushes Tax on Digital Services

Will Spotify, Netflix subscriptions cost more?
by Arianne Merez
Jul 25, 2022
Photo/s: Screenshot from RTVM

President Ferdinand 'Bongbong' Marcos Jr. on Monday pushed for the taxation of digital service providers in his first State of the Nation Address as the government seeks new sources of revenue.

Imposing a value-added tax on digital service providers could earn the government some P11.7 billion by 2023 alone, Marcos Jr. said.

"Our tax system will be adjusted in order to catch up with the rapid developments of the digital economy including the imposition of value-added tax on digital service providers. The initial revenue impact will be around P11.7 billion in 2023 alone," Marcos Jr. said.

ALSO READ: Don't Worry About Higher Taxes, Marcos Finance Chief to Focus on Collection

Finance Sec. Benjamin Diokno earlier said he would support measures to tax digital services and transactions for "fairness."

“Iyong tax on digital services, I think it’s only fair na dapat ita-tax natin iyon, hindi ba? If you're going to buy from the regular stores, nagta-tax ka. Bakit naman kapag digital hindi ka magta-tax?” Diokno told reporters earlier this month.


Should digital service providers be slapped with VAT,  Filipinos might need to save up more for digital transactions like Netflix and Spotify subscriptions.

Marcos Jr. also assured Filipinos that tax compliance procedures will be implemented and that "productivity-enhancing investments" will be promoted.

"We live in difficult times brought about by some forces of our own making and but certainly also forces beyond our control. But we have and will continue to find solutions," he said.


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