Bayan Muna calls proposed 12% tax on Netflix, Spotify ‘anti-consumer’
MANILA, Philippines — The plan to impose an additional 12% tax on online services such as Netflix, Spotify, and Lazada is “anti-consumer,” former Deputy Minority Leader Rep. Carlos Zarate (Bayan Muna) said on Sunday.
Zarate said the government should instead “embark on a progressive tax system,” where the rich and the big corporations would carry the load of additional taxes instead of consumers.
“This proposed tax is another measure that hits the poor and middle class more than the rich and big corporations,” Zarate said in a statement.
“If the government really wants to increase its coffers, it should embark on a progressive tax system that taxes directly the rich and big corporations more rather than the poor.”
Last year, the House of Representatives greenlighted a bill that would impose a 12% value added tax (VAT) on digital transactions that include online shopping platform Lazada as well as online streaming services Netflix and Spotify.
It was introduced as a way for the government to earn more amid the pandemic. The bill now awaits approval at the Senate.
Zarate hit claims that it will be the service provider or the foreign company will be shouldering the VAT, instead of the consumer.
“It is still the consumers who will foot the bill in the end since VAT is a pass-on tax—it would mean higher subscription fees, service charges, and even prices of online products,” Zarate said.
He is proposing that a wealth tax of 1% per million earned by individuals, families, or a corporation.
Zarate said the government can also look into going after the Philippine Offshore Gaming Operators, who have yet to settle their tax obligations.
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