The Department of Finance (DOF) is proposing to implement new taxes, including VAT on digital service providers and cryptocurrencies, to help pay the country`s increasing debt which has hit a record of PHP 12.68 trillion in March.
In a report by ABS-CBN, the DOF has revealed its “Proposed fiscal consolidation and resource mobilization plan,” which aims to generate an average of at least PHP 349.3 billion in new revenues from 2023 to 2027.
Part of the new tax measures includes the imposition of VAT on digital service providers. In September 2021, the House of Representatives approved House Bill 7425, or an Act Establishing Digital Taxation in the Philippines, which aims to level the playing field between traditional and digital businesses by imposing a VAT on digital transactions.
The DOF also plans to tax cryptocurrencies, although details are not yet provided.
Other measures mentioned include carbon taxes, motorcycle taxes, excise taxes on luxury goods and single-use plastics, and taxes and fees on gambling (casino entry and electronic betting). Income tax cuts originally scheduled for 2023.