Hontiveros: Suspend online seller tax

MANILA, Philippines — Sen. Risa Hontiveros wants the Bureau of Internal Revenue (BIR) probed for its plan to tax and require minor online sellers to register even as the country is trying to contain the coronavirus disease 2019 (COVID-19) pandemic.

Hontiveros filed Senate Resolution 453 urging the Senate to probe BIR’s memorandum circular issued early this month.

The memorandum orders all online sellers to register with the bureau and pay taxes. Hontiveros’ proposal also urges the BIR to suspend “until the end of the year” the implementation of the memorandum, which drew flak for being “ill-timed and insensitive.”

“Go after huge digital entrepreneurs and ensure that starting online sellers, who are trying to make a living during the pandemic, should not be burdened. Our revenue policies should be sensitive to the struggles of Filipinos trying to make ends meet in these difficult times,” Hontiveros said.

“The BIR memo is confusing and difficult to follow. Government agencies are saying different things about it. It is best for everybody’s interests if the BIR suspends the implementation of the memo until Dec. 31 while government agencies review and craft better policy guidelines on how online entrepreneurs should register or pay taxes,” Hontiveros said.

She said that as presently worded, the BIR memo orders all online sellers – even those considered as “subsistence entrepreneurs” or those selling products to earn for their families’ basic daily needs – to physically troop to BIR offices and register for tax purposes.

“Let us first establish the digital platform for registration. Requiring people to congregate at the BIR’s offices exposes them to health risks associated with COVID-19 and might lead to further spread of the disease,” she said. Paolo Romero