THE Department of Finance (DOF) is seriously studying the recommendation to impose taxes on online transactions, plus the sale and production of single-use plastics.
Finance Secretary Benjamin Diokno said imposing taxes on single -use plastics is also part of the government’s efforts to do its part in the worsening problem of climate change.
The Philippines is among the almost 200 countries who were signatories to The Paris Agreement, a global treaty on climate change, which was signed in 2015. The agreement aims to reduce greenhouse gas emissions in order help reduce the rise in global temperatures.
Based on the report by the United Nations Environment Program (UNEP) in 2018, the Philippines is included as among the top plastic polluters in the world.
Meanwhile, Diokno has been pushing for the imposition of correct taxes on streaming service payments and other digital transactions to increase government revenue.
“In response to recent developments and on the basis of fairness, we intend to tax online purchases because if you buy a product from a regular store, you pay tax, and I think we should also pay tax online sales,” according to Diokno.
Based on the fiscal consolidation plan laid out by former Finance Secretary Carlos Dominguez III, it aims to increase government revenue to P284 billion each year for the next 10 years in order to pay for the additional P3.2 trillion debt of the country due to the COVID-19 pandemic.
Part of the fiscal consolidation plan is the implementation of new taxes, deferment in personal income tax reduction, and expansion of the value-added tax base.