Online Sellers Should Pay Taxes – BIR

NOTHING SPECIAL ABOUT THEM

By Mortz C. Ortigoza

PANIQUI, Tarlac – The top tax collector of the Bureau of Internal Revenue in this province said that there is no distinction before the law that online sellers should be exempted on taxation than those traditional sellers who religiously pay their taxes to the government.

In a post at Facebook, Revenue District Office No. 17-B Chief Maria Bernadette B.Mangaoang quoted taxation book author Rex Banggawan who denounced politicians who want that online sellers, in consideration of the Corona Virus Disease -19 pandemic, be exempted to business taxes. The government reeled on its cash sufficiency after the pandemic wrought havoc to businesses all over the country after President Rodrigo Duterte imposed almost two months of hard lockdown in the Philippines.

Photo is internet grabbed.

“Some politicians are taking advantage of the issue to create a nice impression for themselves to the public. Don't be tricked by these fools. We have to be reminded that we are equal under the Constitution. What makes online selling so special from physical selling? There is no substantial distinction so the rule of taxation must be the same. Taxation rules on physical selling applies the same with online selling and there is no need for a new law for that,” excerpts of the statement of Banggawan that Mangaoang posted recently at her Facebook Page.

The BIR required lately that 900,000 online sellers in the Philippines to register and pay taxes.

Banggawan continued that these rabble rousing politicians protect a certain sector at the expense of the revenues needed by the cash strapped government.

“Do not believe these pabibo politicians. Kaya tayo di umuunlad dahil mas concern pa sa pagpapa-cute ang mga ibang leaders natin kesa tunglulin nila sa bayan. Panahon na mamulat tayo sa katotohanan. Hanggang kelan pa tayo magbolahan,” he said.
RDO Chief Mangaoang echoed the criticism of the book author.

“Iyang mga papoging magigiting na senadores lumipad sila kasi sumusueldo sila sa gobyerno yet kinakalaban nila ito,” she stressed.

Senate Majority Leader Juan Miguel Zubiri and Senator Sherwin Gatchalian pounced on the BIR's order as not only insensitive but also totally unnecessary.
Gatchalian, Senate economic affairs committee vice chair, said BIR could be spending more for the administrative costs of monitoring web-based merchants and auditing their sales than the revenue that the tax agency could generate from them.
Instead of going after small businesses, he said, the BIR should just focus its resources on collecting some P70 billion in unpaid taxes from 24 Chinese-owned online gambling companies, more known as Philippine offshore gaming operators (POGOs).
Zubiri said the BIR’s order was not only insensitive but also totally unnecessary.
Despite the mounting opposition from the senators, the Department of Finance stood firm on the BIR decision, with Finance Undersecretary Antonette Tionko justifying it was not designed to go after online sellers for “unreported sales or unpaid taxes.”
He said the program was crafted to “encourage those who are engaged in online businesses to register with the BIR.”